Vesting means that an employee will lose all rights to collect pension benefits should they leave the company before their official retirement date.

Question

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Vesting refers to the process of establishing an employee's ownership over employer contributions to a retirement plan. If an employee leaves the company before their official retirement date, they may still be entitled to a portion of the employer contributions based on a vesting schedule. However, they will not lose all rights to collect pension benefits.

Vesting Means That an Employee Will Lose All Rights to Collect