Break In Service

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DEFINITION of 'Break In Service'

The loss of use of the contribution or benefit plan of the corporation due to a lack of hours worked. Break in service may require an employee to work a specific amount of hours over a twelve month period in order to maintain their benefits.

INVESTOPEDIA EXPLAINS 'Break In Service'

The minimum hours required to avoid a break-in-service varies significantly between corporations, however, the required hours may not exceed 500.

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