Business Definition for: unconditional vesting
unconditional vesting
no limitation under a
contributory
pension plan of an employee's right to receive vested benefits, regardless of whether or not the employer withdraws contributions.
See also
vesting, conditional
,
vesting
Related Terms:
limitation under a contributory pension plan of an employee's right to receive vested benefits. The employee can withdraw contributions to the pension plan only according to stated conditions.
right an employee gradually acquires by length of service at a company to receive employer-contributed benefits, such as payments from a pension fund, profit-sharing plan, or other qualified plan or trust. Employees must be vested 100% after five years of service or at 20% a year starting in the third year and becoming 100% vested after seven years.
Copyright © 2000, 1995, 1991, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.