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 cliff vesting.

Question

Quizplus · Accepted Answer

I. Vesting helps to reduce labor turnover because employees are more likely to stay with a company if they know that they will eventually own their retirement benefits.II. An employee who terminates employment after four years of service has no vested retirement benefit under cliff vesting because cliff vesting requires employees to work for a specific number of years (e.g., five years) before they become vested in any of their retirement benefits.

Which of the Following Statements Is (Are) True with Respect