Employment Status Changes
Notify the Program of their employment status change by submitting a Participant Data Change Form.
Participants can log on to their accounts through the Program’s website or submit the Beneficiary Designation Form.
Participants can log on to their accounts through the Program’s website or submit the Participant Data Change Form.
Employment Status Changes
Employment status changes may include:
- Part-time to full-time,
- Full-time to part-time,
- A promotion to partner or shareholder, or
- Termination or retirement.
A change in employment status may affect the participant’s eligibility for participation or contributions. For example, if your plan determines eligibility to receive year-end employer contributions based on hours of service, a change to part-time employment could reduce the participant’s hours below the number required to share in that year’s contribution allocation. The reverse can also be true: going to full-time employment may mean you have a participant who is now eligible for employer contributions. You will need to refer to your firm’s adoption agreement to see what types of changes may have an effect on your plan administration.
If a participant retires or his or her employment is terminated, the Program needs the participant’s home address (if not previously provided) and date of termination, which should be provided on the Participant Data Change Form.
Note that the term “participant” will continue
to include anyone who has terminated or retired, so long as that individual
continues to maintain a balance in your plan.