Years of Service
Definition - What does Years of Service mean?
Years of service is commonly used for recording working experience within an employee’s profession. Specifically, it refers to the length of employment, which is measured to determine eligibility, vesting, and benefits levels for employee participants in tax-qualified pension plans. In terms of qualifying for beneftis, it is often a requirement that years of service be continuous without a break.
Insuranceopedia explains Years of Service
Although years of service is used for benefits purposes, it is also used to reward employees. No form of recognition is as important to the success of any organization as recognition of an employee’s years of service. Recognizing employees for the total years they have dedicated to an organization is an excellent way for a company to show they value the dedication and hard work of all the individuals in the company.