Graduated Vesting

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Dictionary Says

Definition of 'Graduated Vesting'

The accelerated benefits employees receive as they increase the duration of their service to an employer. A vesting schedule is mandated by federal law for the employers' contribution portion of private retirement plans. It specifies the minimum number of years a company may require employees to work in order to earn the vested right to all or part of the employer contributions.

Investopedia Says

Investopedia explains 'Graduated Vesting'

A graduated vesting schedule for a defined benefit plan requires an employee to have worked for a certain number of years in order to be 100% vested in the employer funded benefits. For example, an employee may have to work for seven years to become fully vested, but will be 20% vested after three years, 40% vested after four years, 60% after five years, and 80% after six years of service.
Search results for

'Graduated Vesting'

  • The Defined-Benefit Plan's Many Problems

    http://www.investopedia.com/articles/retirement/10/demise-defined-benefit-plan.asp
    ... Linda is 22 and recently graduated from college. ... 5. Vesting uncertainties, It is
    impossible to know if employees will work for the employer long enough to vest ...

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