Definitions for "cliff vesting"
A characteristic of some retirement plans which specifies that employer matching...
A form of vesting that was allowed under the Employee Retirement Income Security Act of 1974 (ERISA) that required an employee to complete 10 years of service to receive any retirement benefits. Under the Tax Reform Act of 1986 this requirement was reduced to 5 years of service.
Full 100% vesting after X years of service, with no gradation of vesting before that time. Benefits must be 100% vested after five years. If participants leave the company or terminate prior to the vesting date, no partial benefits are received. efined Benefit Plan — Any plan that is not an individual account plan, and is designated primarily for retirement. The employer's contributions are determined actuarially. The formula may provide a flat monthly payment; or it may provide a definite amount for each year of service, expressed either as a percentage of compensation for each year of service or as a flat dollar amount for each year of service.