Who must be allowed to participate in a company's qualified plan under the Employee Retirement Income Security Act?

The correct answer is that anyone over the age of 21 who works 1,000 hours per year must be allowed to participate in a company's qualified plan under the Employee Retirement Income Security Act (ERISA). This guideline ensures that employees who have a significant level of engagement with the company, as indicated by their age and hours worked, are given access to the retirement benefits provided by the company.

Under ERISA, the regulations are designed to protect employee rights regarding pensions and retirement plans, establishing minimum participation requirements to promote inclusivity. By stipulating a threshold of age and hours worked, the law attempts to balance employee benefits accessibility with practical considerations for employers.

Other options do not align with ERISA's requirements. While the intention of including all employees or individuals with a specified service time might seem fair, such stipulations must adhere to the regulations that focus specifically on age and hours worked. Therefore, the focus on a minimum age and hours ensures that a fair number of employees have access to retirement benefits without imposing undue requirements that exclude a broad base of employees.