(a) General. Sections 202(a)(3)(D), 203(b)(2)(D) and 204(b)(3)(E) of
the Act and sections 410(a)(3)(D) and 411(a)(5)(D) and (b)(3)(E) of the
Code contain special provisions applicable to the maritime industry. In
general, those provisions permit statutory standards otherwise expressed
in terms of 1,000 hours of service to be applied to employees in the
maritime industry as if such standards were expressed in terms of 125
days of service. A plan covering employees in the maritime industry may
nevertheless credit service to such employees on the basis of hours of
service, as prescribed in Sec. 2530.200b-2, including the use of any
equivalency permitted under Sec. 2530.200b-3, or may credit service to
such employees on the basis of elapsed time, as permitted under
Sec. 2530.200b-9.
(b) Definition. For purposes of sections 202, 203, and 204 of the
Act and sections 410 and 411 of the Code, the maritime industry is that
industry in which employees perform duties on board commercial,
exploratory, service or other vessels moving on the high seas, inland
waterways, Great Lakes, coastal zones, harbors and noncontiguous areas,
or on offshore ports, platforms or other similar sites.
(c) Computation periods. For employees in the maritime industry,
computation periods shall be established as for employees in any other
industry.
(d) Year of service. To the extent that a plan covers employees
engaged in the maritime industry, and credits service for such employees
on the basis of days of service, such employees who are credited with
125 days of service in the applicable computation period must be
credited with a year of service. In the case of a plan covering both
employees engaged in the maritime industry and employees not engaged in
the maritime industry, service of employees not engaged in the maritime
industry shall not be determined on the basis of days of service.
(e) Year of participation for benefit accrual. A plan covering
employees engaged in the maritime industry may determine such an
employee's period of service for purposes of benefit accrual on any
basis permitted under Secs. 2530.204-2 and 2530.204-3. For purposes of
Sec. 2530.204-2(c) (relating to partial years of participation), in the
case of an employee engaged in the maritime industry who is credited by
the plan on the basis of days of service and whose service is not less
than 125 days of service during an accrual computation period, the
calculation of such employee's period of service for purposes of benefit
accrual shall be treated as not made on a reasonable and consistent
basis if service during such computation period is not taken into
account. Thus, the employee must be credited with at least a partial
year of participation (but not necessarily a full year of participation)
for that accrual computation period, in accordance with Sec. 2530.204-
2(c).
(f) Employment commencement date. For purposes of Sec. 2530.200b-4
(relating to breaks in service) and Sec. 2530.202-2 (relating to
eligibility computation periods):
(1) The employment commencement date of an employee engaged in the
maritime industry who is credited by the plan on the basis of days of
service shall be the first day for which the employee is entitled to be
credited with a day of service described in Sec. 2530.200b-7(a)(1).
(2)(i) Except as provided in paragraph (f)(2)(ii) of this section,
the reemployment commencement date of an employee engaged in the
maritime industry shall be the first day for which the employee is
entitled to be credited with a day of service described in
Sec. 2530.200b-7(a)(1) after the first eligibility computation period in
which the employee incurs a 1-year break in service following an
eligibility computation period in which the employee is credited with
more than 62 days of service.
(ii) In the case of an employee engaged in the maritime industry who
is credited with no hours of service in an eligibility computation
period beginning after the employee's reemployment commencement date
established under paragraph (f)(2)(i) of this section, the employee
shall be treated as having a new reemployment commencement date as of
the first day for which the employee is entitled to be credited with day
of service described in Sec. 2530.200b-7(a)(1) after such eligibility
computation period.
