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ERISA and Qualified Retirement Plans Waiting Period

Does all service with an employer count for purposes of the one-year waiting period for participation?

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Actually, this is up to the employer and not the federal government. When we deal with ERISA and qualified retirement plans, we're directly dealing with the federal government. In this case, the Department of Labor (DOL) stipulates the rules and regulations that employers must follow, if and when they choose to set up a retirement plan for employees. The plans have to have minimum documentation standards, must be in compliance with all federal and state rules and regulations, and must include certain elements. One of the main elements is what's called a Summary Plan Description. Every employer must provide each employee with this document. The Summary Plan Description stipulates the conditions of the qualified retirement plan and also specifically states who qualifies - and more importantly, who doesn't. It also states the types of service that are required and the number of service hours required in order to qualify for participation in the plan. The Summary Plan Description ...

Solution Summary

This solution explains if all service with an employer counts for purposes of the one-year waiting period on ERISA and Qualified Retirement Plans.