Financial/Retirement Professionals » Business Retirement Professionals MPP/PS Eligibility
Eligibility requirements must be defined in the plan document. An employer may set employee participation requirements that are less restrictive than those stated by the law but may not set requirements that are more restrictive. Under law, the most restrictive requirements allowed are: » Can be based on age: Up to age 21 before they may become participants of the plan. » Length of Service: Plan may require up to 2 years of service. » A year of service cannot be more than 1,000 hours. » Class restrictions: | » | Employees who are members of a collective bargaining agreement or non-resident aliens with no U.S. source income may be restricted. | | » | Leased employees - certain requirements apply. | | » | Acquired employees might be restricted depending on the document. |
All employees who meet these requirements must be included in a profit sharing or money purchase pension plan if their employer has established one.
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