Which of the following statements is (are)true with respect to vesting under a qualified retirement plan?
I.Vesting helps to reduce labor turnover.
II.An employee who terminates employment after four years of service has no vested retirement benefit under graded vesting.

Question

Quizplus · Accepted Answer

Vesting can help reduce labor turnover by incentivizing employees to stay with the company longer to receive full retirement benefits. Under graded vesting, an employee typically has some vested benefit after four years, so statement II is false.

Which of the Following Statements Is (Are)true with Respect to Vesting