Vesting refers to a qualifying period of pension plan membership that must be met before pension benefits legally exist. This means that the employee has the right to the employer's contributions to the pension plan, even if they leave the company. Vesting periods can vary depending on the pension plan and are typically based on years of service.

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Vesting Refers To

Question 45

Multiple Choice

Vesting refers to:

A) a qualifying period of pension plan membership that must be met before contributions are made by the employer.
B) a qualifying period of pension plan membership that must be met before pension benefits legally exist.
C) a qualifying period of pension plan membership after which benefits are received.
D) a qualifying period of pension plan membership after which contributions may cease.

Correct Answer: