Events
Events for defined benefit plan purposes are occasions such as:
Service under a defined benefit plan is often computed using events. Certain events tell us when service is accruing and when it’s not. Some companies include occasions such as a pay increase in their events. In such cases, the particular event may be ignored since it has no affect upon service calculations. Each event will have a basic rule that will be defined in the Event Definitions. The rules that go beyond the basic rules are constructed in the service definitions.
The following are typical events with their specific rules :
| Event________ | Basic rule | Additional rules __________________________ |
| Hire date | Start | Service usually accrues during the period employment. Sometimes there are conditions (such as age 21 and 1 year of service) which must be met before service can start. |
| Layoff | Stop | Service usually does not accrue during a period of layoff. Oftentimes some service (such as vesting service) is accrued for a period of time (perhaps one year) during the layoff period. |
| Termination date | Stop | Service usually stops at termination of employment. Sometimes an amount of service is granted at termination for a retirement window. |
| Death | Stop | Service stops upon death, but sometimes other service related provisions are granted such as vesting. |
| Rehire date | Start | Service usually accrues following a rehire date. |
| Pay increase | Ignore | Pay increases usually have no affect on service |