vesting Definition
vest·ing (ves′tiŋ)
noun
the retention by an employee of all or part of pension rights regardless of change of employers, early retirement, etc.
vesting Finance Definition
The
right that an employee has to receive contributions made by their employers to
an employer-contributed pension plan, a 401(k) plan, or a profit-sharing plan.
The federal government requires that employees must be fully vested, or be
given the right, to own all of their employers contributions after a certain time
period. Usually vesting rights are given on a graduated schedule, with 20
percent of the contribution being vested each year.
Browse dictionary entries near vesting
- ‹ vestigial sideband
- ‹ vestige
- ‹ vestibule
- ‹ vestiary
- ‹ vestee
- ‹ vested interest
- ‹ vested
- ‹ vestal virgin
- ‹ vestal
- ‹ Vesta
Print this Page
Suggestion Box
Send to Friend
