Those events don't work like other events do. Think of them kind of like custom "on update" events with custom parameters, meaning they return things like whatever your new level is, or whatever skill you just increased. Like on update, you have to register the script to receive the event.
Unlike on update, you do not register it by using some other function in the script. To get your script to receive those events you have to do two things. First, in your quest, change it from start game enabled to on event level increase. That means uncheck start game enabled and select level increase from the drop down.
The second thing you must do is go to the sm e vent node section of the object window. Find the event node for leveling up. Open it up, and right click and add new quest node. Make sure you name it something unique and make sure "shares event" is checked. Then, right click on your new node and click add quest. Select the quest you want to receive the event, which is the one with your script, and you are done!