Vesting occurs when an employee has a non-forfeitable right to receive pension benefits.

Question

Quizplus · Accepted Answer

This is the correct definition of vesting. When an employee's right to receive pension benefits becomes non-forfeitable, it is said to vest. This means that the employee is entitled to receive the benefits even if they leave the company or retire. Vesting can occur over a period of time, such as through a vesting schedule, or it can happen all at once.

Vesting Occurs When an Employee Has a Non-Forfeitable Right to Receive