When a UU Employer adopts the Plan:
ALL of their W-2 employees (age 18 and up) must be informed that they can participate in the Plan by authorizing employee contributions via salary deferral at any time, even if they haven't yet met the Year of Eligibility Service (YOES) requirement which qualifies them to receive the Employer’s Contributions.
Determining Eligibility for Employer’s Contributions
The Plan's “Year of Eligibility Service” (YOES) provision governs Employers' determinations of eligibility for Employers' contributions
There are a few ways that an employee meet’s the Plan’s Year of Eligibility Service” (YOES) provision:
· By successful completion of ministerial internship (thus, all UU Clergy are immediately eligible) OR
· having previously satisfied YOES at another UU participating employer* OR
· After a 12 month period of employment, designated in the Plan (see below for example), employers, doing a “look back” at the end of the designated period, must determine whether the employee rendered at least 1,000 Hours of Service (including working at 2 or more participating UU employers) during that particular period.
NOTE: once an individual has satisfied the YOES provision, they do not have to re-satisfy the provision, and employer’s contributions continue, even if the employee’s hours drop below the initial 1,000 hours mark.
*Because the UU Retirement Plan is a Multiple Employer plan, your employee might have satisfied the Plan’s service provision while employed by another UU participating employer.
What is an “Hour of Service?”
■ Each hour …paid or entitled to payment for the performance of duties for an Employer.
■ Each hour …paid or entitled to payment by an Employer on account of a period of time during which no duties are performed (irrespective of whether the employment relationship has terminated) due to vacation, holiday, illness, incapacity (including Disability), layoff, jury duty, military duty or leave of absence.
Determining Eligibility for Employer’s Contributions - An Example:
◆ Person isn’t UU Clergy, and hasn’t previously satisfied YOES. (The Plan's “Year of Eligibility Service” provision.)
◆ Now works for an Employer that offers the Plan.
Employee’s Date of Hire for this example: 01/28/2016
Checkpoint: 01/28/2017 (One Year from Date of Hire)
Ask yourself: Did they render 1,000 Hours of Service between first and second date of this period? (01-28-2016 – 01-28-2017)
If yes, then ER contributions start 02/01/2017 (first of the month coincident w/ or following the date they satisfied the Plan’s YOES provision.) And, you do not need to continue to monitor hours of service; once the employee has met the Plan’s service requirement, they remain eligible for Employer’s Retirement Contributions.
If not, then next period reviewed will be the 2017 calendar year: 01/01/2017 – 12/31/2017
Checkpoint: on 12-31-2017
Ask yourself: Did they render 1,000 Hours of Service between first and second date of this period? (01/01/2017 – 12/31/2017)
If yes, then ER contributions start 01/01/2018. And, you do not need to continue to monitor hours of service; once the employee has met the Plan’s service requirement, they remain eligible for Employer’s Retirement Contributions.
If not, then next period is the 2018 calendar year: 01/01/2018 – 12/31/2018
Checkpoint: on 12-31-2018
Ask yourself: Did they render 1,000 Hours of Service between first and second date of this period?
If yes, then ER contributions start 01/01/2019. And, you do not need to continue to monitor hours of service; once the employee has met the Plan’s service requirement, they remain eligible for Employer’s Retirement Contributions.