Which of the following statements regarding vesting in a defined benefit plan is correct?
A)Under a cliff vesting schedule,a portion of an employee's benefits vest each year.
B)Under a graded vesting schedule,an employee's entire benefit vests all at the same time.
C)When an employee's benefits vest,she is entitled to participate in the employer's defined benefit plan.
D)When an employee's benefits vest,she is legally entitled to receive the benefits.To vest in a benefit means to be legally entitled to receive it.

Question

Quizplus · Accepted Answer

Vesting in a defined benefit plan means the employee is legally entitled to receive the benefits. Choice A and B refer to different vesting schedules, but they do not accurately describe how vesting works in a defined benefit plan. Choice C is partially correct but incomplete, as vesting does not automatically entitle an employee to participate in the plan (they may already be a participant).

Which of the Following Statements Regarding Vesting in a Defined