- (law) The entitlement of an employee to receive the full benefit of a pension at normal retirement age or a reduced pension upon early retirement even upon change of employer before retirement.
- (law) The entitlement of an employee to exercise a stock option after a predetermined period of time.
- Cloth for making vests.
- A vest pattern.
- Present participle of vest.
vesting - Investment & 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 employer’s 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.