five to fifteen year rule Definition | Business Dictionaries from AllBusiness.com
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Business Definition for: five to fifteen year rule
five to fifteen year rule

vesting provision of the Employee Retirement Income Security Act of 1974 (ERISA) under which vesting must accrue at not less than the following rates:

Years of Service Vesting
0 to less than 5 0
at least 5 25%
6 to 10 5% increase per year
11 to 15 10% increase per year

At the end of 15 years, 100% vesting has been achieved. The tax reform act of 1986 eliminated this option of vesting beginning January 1, 1989.

Copyright © 2000, 1995, 1991, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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