Long-Term Part-Time Workers Provision

The SECURE Act of 2019 (“SECURE 1.0”) and the SECURE 2.0 Act (“SECURE 2.0”), which was signed into law in late 2022, made sweeping changes to the rules governing workplace savings plans, like 401(k)s and 403(b)s, including a provision related to long-term part-time (LTPT) workers. The latest provision will require retirement plans to enroll part-time workers after they work for a certain number of consecutive years.

While the basic parameters of the LTPT provisions have generally been understood, additional guidance from the Internal Revenue Service was needed to have a fuller sense of compliance responsibilities. In November 2023, the IRS issued proposed regulations addressing some of those questions.

The following is helpful information for plan sponsors about the LTPT provision and its impact on retirement plans in 2024 and beyond.