Maxford Corp.offers full vesting after two years.However, it does not offer portability of pension to its employees.Which of the following statements is true in this scenario?

Question

Quizplus · Accepted Answer

Maxford does not have to provide vested benefits to employees who quit before six months. This means that if an employee leaves before completing six months of service, they will not be entitled to any pension benefits. After six months of service, employees are entitled to a pro-rata share of their pension benefits, but they will not be fully vested until they complete two years of service. Additionally, since Maxford does not offer portability of pension benefits, employees cannot transfer their pension benefits to a new employer if they leave Maxford.