QOTW: Part-Time Eligibility 2

A plan sponsor at our recent National Conference wondered if other organizations have different eligibility rules for part-time workers versus full-time workers – with the new requirement for permanent part-time workers to be eligible after two years, are sponsors allowing part-time workers to participate in the plan immediately if they allow full-time workers to participate immediately or is there a waiting period for part-time workers only. We asked members this question this week – 90 percent said eligibility requirements are the same for full and part-time workers with 10 percent stating there are different requirements. A few comments for those that allow everyone into the plan is that it is administratively hard to track the part-time hours and eligibility – its easier to let everyone in at the same time. For the plans that do have different requirements, those difference include:

• 12 months plus 1000 hours for part-time employees vs 6 months for full-time employees
• Excluded class
• Part Time Employees are not eligible for any benefits
• part time: 1000 hours or more over a 12 month period, full time team members that work an average of 30 hours or more a week are eligible immediately upon hire date
• Part-time employees are subject to the IRS maximum allowable eligibility period.
• PT employees not eligible
• service requirement
• They have to work 1000 hours in the year to qualify for participation

Other comments included:

• Administratively hard to track. Easier to include and match for everyone.
• All associates are eligible immediately.
• All employees are treated the same.  Eligible to participate on first day of work, as long as they are at least 18 years of age.
• Anyone on our payroll is eligible
• Both full-time and part-time employees should be working the required minimum hours.
• Currently in the process of reviewing the plan for some amendments to revise PT employees' eligibility requirements to participate.
• Eligible to contribute voluntary contributions at time of hire. Profit-Sharing they must meet the service, work hours, and be employed on Dec 31 or last work day to qualify.
• Everyone can join immediately but must meet the 1 year service requirement for the employer contribution.
• FT and PT eligibility are the same.
• It is based on the their first day of hire.  There is immediate eligibility.
• Many part time employees do not meet the 1000 hours in a 12 month period
• No difference between full time and part time employees
• Our plan is based on 1,000 hours and 12 months of service.  Part-time may meet these requirements.
• part time only eligible where law requires
• Prior to 2020, we had a scheduled hours requirement that we removed as of 1/1/2020 though
• PT eligibility would be 500 hours in the first 6 months or 1000 hours in a calendar year.
• PT employees not eligible
• Waiting to see if hours requirement from 1000 to 500 will go into effect - that will force us to make changes or monitor differently
• We are a state employer. Part-time workers are immediately eligible. However, per diem employees and employees hired as part of a national program (i.e., the state receives funding from a national work program for students or youth) are not eligible under state law.
• We are working to introduce 401k eligibility to part-time team members immediately upon hire, so all team members are able to be in our plan.
• We do not count hours worked and PT employees are eligible the same time as our FT employees.
• We do not have any part-time employees; however, our plan does have a service requirement of minimum of 1000 hours.
• We have very low numbers for part-time employees. We decided in Q1 to amend our plan's eligibility to go from the 1000 hours to immediate eligibility.
• We need part-time employees and don't want to suggest they are less important to our business.