Field Timer question

Just a bit stuck on the field timer settings, could you gi e me an example for each please. I have just copied what the IS guide says.

" 1. Next Occurrence will look at the Mont/Date to schedule the event
2. Use Year from Field will look at the Month/Date & Year to decide when to schedule the event"

Can I only use the year from setting for that specific date set. So if I run a sequence and the year was last year it would just bypass that field timer as the wrong year so would need to use the next occurrence setting?

Hope this makes sense guys!