Vesting refers to the ability of an employer to reclaim all of the funds it may have paid into a former employee's retirement fund upon that employee's decision to resign.

Question

Quizplus · Accepted Answer

Vesting refers to the employee's ownership of the funds in their retirement account, even if they leave the company. The employer cannot reclaim those funds. However, there may be rules around the timing of when the employee is fully vested and entitled to all of the employer's contributions.

Vesting Refers to the Ability of an Employer to Reclaim