Participant Eligibility Rules

Use the Participant Eligibility Rules option to define eligibility for participating in the plan and receiving employer contributions. You can define rules for eligibility for Plan Participation, Profit Sharing, Safe Harbor, Match Contribution, After-Tax and Forfeiture Eligibility Types. A Plan can use dates and/or hours to determine eligibility. Key dates are birth date, hire date, rehire date, termination date, plan inception date, and open enrollment date. When hours are required, years subsequent to the first year of employment can either switch to the Plan year or continue as anniversary years of employment.

Note: Once you define the rules in the Participant Eligibility Rules option, you will need to run the Update Eligibility process in order to update the employee database for the plan.

You can define the following types of eligibility on the Participation Eligibility window:

·         Plan Participation

·         After Tax

·         Match Contribution

·         Profit Sharing

·         Forfeiture

·         Safe Harbor

See Also: How to Setup Participant Eligibility Rules

Special Notes regarding Eligibility and Enrollment Dates

·         The Eligibility and Enrollment Dates will never be populated with a date before the Plan's inception date.

·         If a participant terminates employment after meeting eligibility but prior to the enrollment date, TSM SmartClient will populate both eligibility and enrollment dates. However, it will not check the eligibility flag for that eligibility type.

·         If a participant terminates employment prior to meeting eligibility, TSM SmartClient will not populate the eligibility or enrollment date, and also will not check the eligibility flag for that eligibility type.

·         If the participant terminates employment on or after meeting the eligibility requirements, TSM SmartClient will populate both the eligibility and enrollment dates, as well as check the eligibility flag for that eligibility type.