2. Definition of break in service

Statement of Requirement: DOL Reg. § 2530.200b-4(a)(1)

Sample Plan Language: Break in service will mean a 12-consecutive month period (computation period) during which the participant does not complete more than 500 hours of service with the employer.

(Note to reviewer: Computation periods may vary for eligibility and vesting purposes. See LRMs #19, #20 and #52.)

(Note to reviewer: Minimum participation standards requiring completion of 1,000 hours of service to be credited with a year of service for eligibility are reduced to 500 hours for purposes of establishing eligibility for elective deferrals for years beginning after December 31, 2020. See Section 112 of the SECURE Act. Section

152 | D e f i n e d C o n t r i b u t i o n P l a n L R M P a c k a g e 0 1 / 2 0 2 4

125 of the SECURE 2.0 Act requires two consecutive years of 500-hour credited service for CODA eligibility for long-term part-time employees. CODA eligibility for this purpose includes rules for determining when and if an employee has a break in service for eligibility determinations. See CODA LRM II for CODA eligibility requirements in this regard.)