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Restatement 03: Breaks in Service and Rehired Employees
Presentor: Derrin Watson Recorded Date: 8/11/2014 Duration: 60 Min.

Description
This program was recorded during a live presentation given on August 11, 2014 at 12:00PM EDT.
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This series provides education and commentary on plan designs and the restatement process. It focuses on legal principles which can apply to any plan, rather than on the specifics of any one plan document. As always we look forward to answering attendee questions, whether submitted ahead of time or during the program.

All sessions will be recorded and available for purchase. Due to the inability to track attendance, however, a Letter of Participation is not provided for recorded events.

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Restatement Perspectives 03: Breaks in Service and Rehired Employees

Some of the more challenging eligibility questions that confront a retirement plan practitioner are questions relating to rehired and part-time employees. When does a rehired employee re-enter/enter the plan? Can a plan exclude part-time employees? How may the plan define part-time employees? When and how do the break-in-service rules affect rehired and part-time employees? Does the one-year hold out rule apply to a 401(k) plan? What vesting years of service must the plan credit for a rehired employee? Does it matter whether the participant received a cash-out distribution? If the rehired participant is receiving distributions, do you stop the distributions? Surprisingly, these questions and more arise often. While these are frustrating issues in administration, they are also important considerations in plan design. Should the employer use break-in-service rules? How much good will they do? How much confusion will they cause?

Topics include:

  • When do rehired employees re-enter/enter the plan?
  • When and how do the break-in-service rules apply?
  • Can you utilize the one-year hold-out rule in a 401(k) plan?
  • When can the plan treat the rehired employee as a new employee?
  • Distributions to rehired employees
  • Crediting vesting service for rehired employees
Prerequisites: There are no prerequisites or advance preparation for this program. The instructor will assume attendees are familiar with preapproved plan documents and with the operation of 401(k) plans.

Level: Intermediate

Instructional Delivery Method
Group – Internet-Based

Speaker – S. Derrin Watson, J.D., APM
Recipient of ASPPA's 2006 Educator of the Year Award

Objectives: After the seminar, attendees should be able to:

  1. Determine when a rehired employee enters the plan
  2. Apply the break-in-service rules correctly
  3. Determine whether the break-in-service rules will benefit an employer
  4. Determine when the plan may treat a rehired employee as a new employee
  5. Determine how to administer the eligibility rules where there is missing service data
How To Participate
You will need a phone (speakerphone, for multiple participants sharing the Primary registrant’s authorized connection) and Internet Access. The graphics presentation and illustrations will be viewed via the Primary registrant’s Web connection, while the speaker audio portion will be via the Primary registrant’s telephone.

Select the "Fees" link on the right side menu of this page for more information about who is authorized to connect to the program, and for the cancellation/transfer policy.

Program Schedule (Eastern Time)
Monday, August 11, 2014
12:00 noon to 1:00 p.m. Eastern Time
(11:00 a.m. CT; 10:00 a.m. MT; 9:00 a.m. PT)

Program related requests, questions, or concerns may be e-mailed to: relius.education@sungard.com.