Vesting Schedule

By November 8, 2017 No Comments

The structure for determining participants’ ownership right to company contributions (see matching contributions). In a plan with immediate vesting, participants own all company contributions as soon as they are deposited into individual accounts. In cliff vesting, company contributions will be fully owned (i.e., vested) only after a specific amount of time, and employees leaving before the allotted time are not entitled to any company contributions (with certain exceptions for retirees). In plans with graduated or graded vesting, vesting occurs in specified increments.