Cliff Vesting

What Does Cliff Vesting Mean?
A type of vesting that occurs entirely at a specified time rather than gradually.

Investopedia explains Cliff Vesting
Until the specified time there is no vesting, at which point the benefit becomes fully vested. For example if an employee contributes to an employer-matched pension plan, the employer's contributions become property of the employee all at once rather than gradually.

Filed Under: Retirement

Related Terms

401(k) Plan
Employee Stock Option - ESO
Pension Plan
Vest Fleece
Vesting
More Related Terms

Related Links

Introductory Tour through Retirement Plans - Here you will find tutorials that are each devoted to one the most common retirement plans, explaining how to establish, fund, and then take distributions from it.
Should You Consider An ESOP? - Use this plan to transfer your company's net worth to the next generation of entrepreneurs.
Find High Yield CDs - Retire in style. Search for the 100 highest yielding CD's from Bankrate.com. Click Here!

Rate this Term: Your Rating: Overall Rating: Vote Now!