A: |
The two statutory minimum vesting schedules are five-year
cliff vesting or seven year graded vesting, Under cliff
vesting, after 5 years of employment, employees must
be 100% vested. Under graded vesting, an employee who
is credited with three years of service must be 20
percent vested. The vesting must increase 20 percent
for each additional year of service until 100% vesting
is reached with seven years of service. Plans may have
more liberal vesting schedules than the two identified
in the Code as long as the vested percentage in any
given year is at least as favorable as permitted under
one of these statutory schedules
For More Information:
ERISA (Legal Guides and Information)
COBRA (Legal Guides and Information)
This question is also related to:
Benefits
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