Business Glossary

in law, an interest in something that is certain to occur as opposed to being dependent on an event that might not happen. In general usage, an involvement having the element of personal gain.

right of beneficial interest in real or personal property, which may be deferred for enjoyment in future years. For example, an interest in the assets of a pension fund trust fund, and so on. Participants in a company's defined benefit pension plan gain the right to the employer's contributions to the plan after a vesting period normally after ten years of employment. Pension funds must comply with certain Internal Revenue Service rules before they qualify as employee benefit plans eligible for special tax treatment as tax-exempt investment funds.

one in which there is a present fixed right of present or future enjoyment. For example, a person is immediately vested in any amount in his/her Individual Retirement Account . However, another employee may have to work for five years for the company before the right to a pension will vest.