23. Participation upon return to eligible class

Statement of Requirement: Code § 410(a)(4)

Sample Plan Language:

In the event a participant is no longer a member of an eligible class of employees and becomes ineligible to participate but has not incurred a break in service, such employee will participate immediately upon returning to an eligible class of employees. If such participant incurs a break in service, eligibility will be determined under the break in service rules of the plan.

In the event an employee who is not a member of an eligible class of employees becomes a member of an eligible class, such employee will participate immediately if such employee has satisfied the minimum age and service requirements and would have otherwise previously become a participant.

(Note to reviewer: If the plan has a CODA feature, see LRM #1 and CODA LRM II for provisions regarding eligibility standards applicable to long-term part-time employees.)