Counting Service in Retirement Plans


Summary

This practice note addresses the concept of crediting service for various qualified plan (and ERISA employee benefit pension plan) purposes. Service crediting is fundamental to administering most retirement plans intended to qualify under Section 401(a) of the Internal Revenue Code and to meet the rules that apply to all employee pension benefit plans as that term is defined by Section 3(2) of the Employee Retirement Income Security Act (ERISA). Plans that are not qualified, or even plans, like government plans and non-electing church plans, that are not ERISA employee benefit pension plans, are not subject to the crediting service rules. I.R.C. § 410(c)(1). Church plans may opt in to have them apply. I.R.C. § 410(d).