Deidre has five years of service completed as of February 5, 2019, her employment anniversary date.If the defined benefit plan [not a § 401(m) arrangement] uses the cliff vesting schedule, determine Deidre's nonforfeitable percentage.
A)0%
B)60%
C)80%
D)100%
E)None of these

Question

Quizplus · Accepted Answer

Under a cliff vesting schedule in a defined benefit plan, an employee becomes 100% vested in their employer-provided benefits after a certain period of service, typically 3 to 5 years. Since Deidre has completed five years of service as of February 5, 2019, she would be 100% vested according to common cliff vesting schedules.

Deidre Has Five Years of Service Completed as of February