Vesting refers to the length of service required of an employee before he or she is eligible for a pension. It refers to the period of time an employee must work for a company before they have ownership of the employer's contributions to their retirement account.

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Vesting Refers to

Question 66

Multiple Choice

Vesting refers to

A) the right of the holder of an insurance policy to collect for an insurable event.
B) the shielding of returns on whole life policies from taxation.
C) the length of service required of an employee before he or she is eligible for a pension.
D) the payments made by an employee into a pension plan.

Correct Answer: