vesting

vesting definition - business

vesting

Gaining legal ownership of retirement funds. Employer contributions to a retirement plan do not become the property of the individual until vesting occurs. For example, an employer may require three years of employment for partial vesting and five years of employment for full vesting.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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