What is vesting? What is the difference between cliff vesting and gradual vesting?
What will be an ideal response?
Vesting is that which occurs when an employee gets a nonforfeitable right to receive pension benefits. The Employee Retirement Income Security Act (ERISA) provides for the immediate vesting of each employee's own contributions to a pension plan. ERISA also requires employers' contributions to be either (1) totally vested after five years (cliff vesting) or (2) gradually vested over a seven-year period and completely vested after that time.
You might also like to view...
What is the impact on system reliability of adding parts or components in parallel?
What will be an ideal response?
Six Sigma asserts that continuous efforts to reduce process variation are important to overall performance and customer satisfaction in a project
Indicate whether the statement is true or false
Use Table 9.1 to ascertain the veracity of this statement. Items in series U are the most C-like of all inventory SKUs
Indicate whether the statement is true or false
A law that discriminates based on gender must substantially relate to an important government objective to be valid under the equal protection clause
Indicate whether the statement is true or false