When the Scrub/Eligibility task is run, the ftwilliam.com software will automatically calculate LTPT status for the elective deferral source based on the regulations, for employees that have not already entered the plan. This calculation uses historical hours, either from prior years processed on the software or through the history upload feature. The Eligibility Status Report will show "Yes - LTPT" for LTPT employees. LTPT employees are excluded from testing.
You will need to do careful review and potentially manually calculate LTPT status in the below scenarios:
- Short plan years.
- Plans that switch plan year ends. For example, switching from 12/31 to an off-calendar plan year end, or vice versa.
- Plans that do not switch the eligibility computation period to the plan year. The system does not know when the hours were met and therefore takes a conservative position. The system includes hours from the current plan year in the LTPT eligibility determination in this scenario.
As always, you can use the * ftw Override Initial Eligibility grid from the Other Import/Export/Report menu to override the status when necessary.
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