COMPLIANCE CONNECTION SECURE 2.0 SPOTLIGHT: Upcoming Changes to Long-term, Part-time Eligibility Rules Prepare now to o昀昀er 401(k) Pension Plan participation in 2024 and thereafter. in E n BY CHRIS SCHWARTZROCK n 2019, the SECURE Act (SECURE 1.0) set up an alternate Ipath to 401(k) Pension Plan participation for part-time employees. Starting with hours worked in 2021, an employee who works 500 or more hours for three consecutive years (and is age 21, if the plan requires), becomes eligible to make elective deferrals in 2024. In 2021, cooperatives and NRECA in 2025, shortened the service began preparing to comply with requirement from three consecutive this new rule. That year, co-ops years to two. Co-ops should needed to ensure that they were continue to track hours so that they tracking hours of service for all can be ready to o昀昀er participation employees—including 昀氀exible when required in 2024, and then sta昀昀 categories such as part-time, in 2025 and beyond under the temporary, seasonal and leased—if shortened rule. NRECA is awaiting they were not already doing so. guidance from the applicable Then, in 2022, SECURE 2.0 was agencies on how to administer enacted. It did not eliminate the the new rule. We will pass that alternate eligibility method for information along to co-ops as part-time employees, but starting soon as it becomes available. 10 BENEFITS BULLETIN SPRING 2023