ABA Family Legal Guide

The Rights of Older Americans

Pensions

Traditional Pension Plans

How are years of accrual determined?

After you meet the participation requirements, each year you work for an employer counts as a year of accrual time. A year is defined as one thousand or more hours of work in twelve months. You can work the thousand hours at any time during the twelve-month period; it need not be evenly distributed during the year. Days taken for sick leave or for paid vacation count toward the one-thousand-hour minimum.

It is important to note that, depending on your company's policy, the first year you work for an employer does not have to count toward your years of accrual. Thus, your years of accrual will not always equal the number of years you worked for an employer.