Are You Excluding Part-Timers From the Retirement Plan?

Fiduciaries, Plan Administrator, Trustee, Investment ManagerMany plan sponsors mistakenly believe that they are not required to offer the retirement plan to part-time employees. Regardless of what type of retirement plan you have, all employees, including part-time employees that work 1,000 hours in a year, must be offered the retirement benefit. Though your plan may contain a service requirement that essentially prevents “part-timers” from ever becoming eligible (such as a one year and/or 1,000 hours requirement), part-time employees may NOT categorically be excluded as a class of employees. If you have not informed your part-time employees that they are eligible to participate in the retirement plan if they complete 1,000 hours during the year, please contact your plan consultant to discuss immediate corrective measures.


ACR#196978 06/16