CHAPTER 3A ACCRUING BENEFITS - PART 1 (DC PLAN ALLOCATIONS; DB PLAN ACCRUALS)

Once an employee becomes a participant in a plan, he or she can begin to accrue benefits. This chapter discusses the methods under which benefits are accrued. The rules are different for defined contribution plans and defined benefit plans. The way a plan accrues benefits and the level of benefits provided to a participant also impact other qualification requirements. Where appropriate, references are made to these other requirements and to the chapters where such requirements are discussed. For a discussion of how an employee becomes a participant, refer to Chapter 2.