Does your Plan Administration Process Need to Change? 

Recent legislation under SECURE 2.0 introduces a new requirement for 401(k) plans: Long-Term Part-Time (LTPT) employees—those who have worked at least 500 hours in two consecutive years—must be allowed to make salary deferral contributions to your plan. 

What Does This Mean for You? 

• If your plan’s eligibility is based on hours worked (e.g., 1,000 hours in a 12-month period), you are required to allow LTPT employees to contribute. 

• If your plan’s eligibility is not based on hours worked, this rule does not apply to your plan. In this case, all employees are eligible for the plan after the elapsed time required by your plan document. 

Identifying LTPT Employees 

To help determine which of your employees qualify as LTPT, we’ll need employee hours and compensation data for each payroll period. If you are already providing this information, great!  If not, we will work with you to update your payroll collection to include this information. 

If you’d like assistance with this process, please contact your Client Service Manager. 
We’re here to help you stay compliant and ensure your plan meets the new regulatory requirements.