PART I - ALL PLANS DEFINITIONS 1. Definition of year of service

Statement of Requirement: Code §§ 410(a)(3)(A), 411(a)(5)(A)

Sample Plan Language: A year of service is a 12-consecutive month period (computation period) during which the employee completes at least 1,000 hours of service.

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

(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, for certain ‘long-term, part-time employees.’ See Section 112 of the SECURE Act. See also CODA LRM II for sample plan language in this regard.)