Vesting gives an employee a legal right to receive pension benefits at some future date when he or she stops working.

Question

Quizplus · Accepted Answer

Vesting refers to an employee earning a legal right to receive pension benefits after meeting certain eligibility requirements, such as working for a certain number of years with the company. Once the employee is vested, they have a legally enforceable right to receive their pension benefits at a future date when they stop working.

Vesting Gives an Employee a Legal Right to Receive Pension