Vesting definitionQuestion What is vesting by an employee?
Answer Vesting is the right of an employee to own his or her pension benefits. Vesting schedules are set by law, although employers can provide for faster vesting.
If an employee resigned prior to becoming vested, any retirement benefits the employee has accrued in his or her account from the company cannot be taken. After vesting, those benefits belong to the employee. 
Brain Trust contributor:
Author of J.K. Lasser's Small Business Taxes 2007
Related Categories: Accounting, Finance, Taxes, Financial Planning, Human Resources, Management, Retirement And Exit Strategies
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