Jacob participates in his employer's defined benefit plan. He has worked for his employer for four full years. If his employer uses a five-year cliff vesting schedule, Jacob will need to work another year in order to vest in any of his defined benefit plan retirement benefits.

Question

Quizplus · Accepted Answer

According to the five-year cliff vesting schedule, employees must work five full years to become fully vested in their retirement benefits. Since Jacob has only worked for four years, he is not yet fully vested and would need to work one more year to become vested.

Jacob Participates in His Employer's Defined Benefit Plan