18. Eligibility computation periods

Statement of Requirement: DOL Regs. Reg. §§ 2530.202-2(a), 2530.202-2(b)

Document Provision: _____

Sample Plan Language:

For purposes of determining years of service and breaks in service for purposes of eligibility, the initial eligibility computation period is the 12-consecutive month period beginning on the date the employee first performs an hour of service for the employer (employment commencement date).

The succeeding 12-consecutive month periods commence with the first anniversary of the employee’s employment commencement date.

(This paragraph is not applicable if the eligibility computation period shifts to the plan

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year.)

The succeeding 12-consecutive month periods commence with the first plan year which commences prior to the first anniversary of the employee’s employment commencement date regardless of whether the employee is entitled to be credited with 1,000 hours of service during the initial eligibility computation period. An employee who is credited with 1,000 hours of service in both the initial eligibility computation period and the first plan year that commences prior to the first anniversary of the employee’s initial eligibility computation period will be credited with two years of service for purposes of eligibility to participate.

(This paragraph is not applicable if succeeding eligibility computation periods commence on the 12-consecutive month anniversary of the employee’s employment commencement date.)