Business Definition for: vesting, conditional
vesting, conditional
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.
See also
vesting
Related Terms:
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.
Referring Terms:
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