Over a period of time an employee of a company ear... Add a comment
The process by which an employee is granted full ownership of conferred rights such as stock options and warrants (which then become vested rights). Rights which have not yet been vested (unvested rights) may not be sold or traded and can be forfeited.
A participant's interest in his/her account balance or his/her accumulated benefit.
The acquisition of a nonforfeitable right by an employee to receive all or part of his or her benefit in a plan if he or she terminates employment prior to the normal retirement age. Vesting is subject to plan provisions and assumes that all plan participation requirements are met.
Refers to the earned right of a pension plan member to receive benefits funded by employer contributions. Under the PSPP a plan member is considered vested upon accumulating 5 years of pensionable service.
The right an employee gradually acquires by length of service at a company to receive employer-sponsored benefits, such as profit-sharing or a pension. After the vesting period elapses, entitlement to those benefits remains even if employment is subsequently terminated with the company.
right an employee gradually acquires by length of service at a company to receive ownership of the retirement or benefit plan contributions made by the employer.
The principle that a beneficiary gains entitlement to benefits attributable to an employer's contributions under a pension plan within a specified time period.
The right of an employee under a retirement plan to retain part or all of the annuities purchased by the employer's contributions on the employee's behalf or, in some plans, to receive a cash payment of equivalent value on termination of employment after certain qualifying conditions have been met.
Where an employee or consultant has been granted rights to receive options or has been issued shares which are subject to his completing a specific length of service or achieving certain milestones, the options or shares will have vested when the period or milestone has been satisfied. Once vested the employee or consultant is entitled to exercise those options to obtain shares or to receive full rights to the shares (see paragraph 9, Section IV above).
In relation to superannuation, the inclusion of all or part of the employer contribution in the benefit payable to a member who leaves his or her employment (eg. resigns) before being eligible for retirement benefits. (See also Full Vesting, Partial Vesting).
Right an employee gradually acquires, by length of service at a company, to receive employer-contributed benefits such as payments to a pension fund or profit-sharing plan.
A provision that a pension participant will, after meeting certain requirements, retain a right to all or part of the accrued benefits, even though the employee may leave the job before retirement.
The transfer of 31st March 1990 of the property, rights and liabilities of each part of the electricity supply industry to its successor company or companies.
Relates to the inclusion of employer contributions in an employee’s benefits when an employee leaves his or her employment, but is not yet eligible for retirement benefits.
Your right to all or a part of the employer contributions to your FSSP accounts. When you are ï¿1/2fully vested,ï¿1/2 you have 100% ownership in the value of your accounts.
Being vested means that you own your Plan account. You are fully vested in your own contributions to the account and any related earnings. Most Savings Plan participants are also vested in all company contributions and company matching contributions, including earnings, made to their Savings Plan accounts.
The point at which pension or retirement benefits actually become the property of the plan participant.
The minimum number of years of covered WRS employment needed to qualify a participant for a retirement benefit. As of January 1, 1990, new WRS participants needed some WRS creditable service in 5 separate calendar years to meet the WRS vesting requirements. As of April 24, 1998 the vesting requirement was eliminated, so participants who either began WRS employment before January 1, 1990 or terminated after April 23, 1998, are automatically vested.
The portion of a participant's 401(k) account balance that they are entitled to under the plan's rules. Depending on the provisions of the plan, employees become "vested" over a pre-determined period of time, incrementally over a period of years.
The right of an employee to all or a portion of the benefits he or she has accrued, even if employment terminates. Employee contributions, as in a 401(k) plan, always are fully vested. Employer contributions vest according to a schedule defined by the plan and are usually based on years of service.
An ERISA guideline stipulating that employees must be entitled to their entire retirement benefits within a certain period of time even if they are no longer with the employer.
A Participant's non-forfeitable right to receive Employer contributions and investment earnings.
It refers to the percentage of accrued benefits entitled by a member.
If you are part of an employer pension plan or participate in an employer sponsored retirement plan, such as a 401(k), you become fully vested — or entitled to the contributions your employer has made to the plan, including matching and discretionary contributions — after a certain period of service with the employer. Qualified plans must determine the period using standards set by the federal government. If you leave your job before becoming fully vested, you forfeit all or part of those benefits.
To give someone control over their stock or stock options. When employees are given stock options or restricted stock, they often do not gain control over the stock or options for a period of time. This period is known as the vesting period and is usually 3 to 5 years. During the vesting period the employee cannot sell or transfer the stock or options.
The right of employees to receive benefits from their pension plans.
The process of transferring ownership of employer contributions to the member. Award and SG contributions vest immediately in the member
The establishment of an absolute right of ownership.
The participants' ownership right to company contributions.
The date when you are entitled to receive money that your employer has contributed to your retirement account.
The rate at which options granted under a stock option plan become exercisable by the option holder. Most stock option plans provide that options vest (and therefore become exercisable by the option holder) over a period of years so that the company gets the benefit of extended employment and performance from the option holder. A common pattern is for options to vest in equal percentages over three to five years, usually on the anniversary date of the option grant. If the option holder's relationship with the company ceases, then the option holder forfeits the options that have not yet become vested.
a period of time over which an employee's options become exercisable.
The right an employee receives through length of service time to keep employer-contributed benefits such as payments made to a pension plan, 401(k), profit sharing plan, or other retirement plan.
The process by which contributions to a pension plan for a particular employee may no longer be forfeited. It usually requires that the employee must be with the company for a specified period of time before he or she will be eligible for the benefits after retirement. Until then, the employee is "not vested," which means if something happens, like the employee quits or is fired, or if the company has lay-offs, the employee may lose those benefits (the contributions are paid out in a lump-sum, see "Portability" above). Some plans provide for " graded vesting," which means that an employee is vested over time, so that each year, a higher percentage of contributions are nonforfeitable, until 100% are nonforfeitable. With graded vesting, the vesting period may be up to seven years. A plan providing that an employee is not vested at all until the specified amount of time elapses is referred to as "cliff vesting." With cliff vesting, the vesting period cannot exceed five years.
Granting to employees entitlement to a pension at retirement. ... read full article
A contractual right by which an employee, after a designated period of employment, is entitled to the pension benefits earned once his/her service is terminated.
The right of employees under a retirement plan to retain part or all of the annuities purchased by the employer's contributions on their behalf or, in some plans, to receive cash payments or equivalent value, on termination of their employment, after certain qualifying conditions have been met.
The participants’ right to company contributions that have accrued in their individual accounts.
Vest means to become available. In relation to an ESOP, shares or options which vest or have vested (and are not subject to any performance conditions) may be dealt with, sold or otherwise disposed of by the employee participant. The shares or options may also continue to be held within the ESOP. Where a vesting condition has not yet been satisfied then such shares or options are referred to as â€˜unvested shares/optionsâ€(tm).
The period of time an employee must work at a firm before gaining access to employer-contributed pension income. For 401(k) plans, employee contributions are immediately vested, but employer contributions may be vested over a period of several years.
the employee's ownership of retirement plan money. The employee is always 100% vested in employee contributions and roll-in contributions plus any investment earnings on those amounts.
A provision concerning the right of pension and profit-sharing plan participants to contributions made by the employer.
The process by which the entitlement to a benefit is transferred to a member. A Westscheme benefit is fully vested in the member concerned at all times. In the past, in many superannuation funds, vesting occurred only gradually over many years.
A term that defines how much of an employee's pension benefits are owned by the employee at any point in time.
The conferring on employees of an irreversible right to superannuation benefits being paid for by their employers, this right becoming available on the cessation of employment.
The right of an employee, on termination of employment, to part or all of his accrued benefit. Vesting is usually in the form of a deferred annuity commencing at normal retirement age. Vesting is said to be conditional if an employee has the option of a cash withdrawal. Statutory vesting occurs when an employee meets the age and/or service conditions set in provincial pension legislation. Benefits as a result of statutory vesting are locked-in.
An ERISA guideline stipulating that employees must be entitled to their benefits from a pension fund, profit-sharing plan or Employee Stock Ownership Plan, within a certain period of time, even if they no longer work for their employer. See Also graduated vesting, cliff vesting, vesting period
A pension plan member becomes vested when the vesting criteria, as set out in the pension plan documents, have been met. Once meeting these criteria, the pension plan member is entitled to the benefits accrued to him or her, under the pension plan.
To have a non-forfeitable right to an allocated portion of an account ownership.
The attainment of a benefit right by a participant, attributable to employer contributions, that is not contingent upon a participant's continuation in specified employment. See also Contingent Vesting, Deferred Vesting, and Immediate Vesting.
Depending on the provisions of the plan, employees, after having been with an employer for a specified period of time, are "vested" in that fund or plan according to a vesting schedule. The vesting schedule is outlined in the terms of the plan document.
A process leading to a future event, at which time, money or property held in trust belongs to a person, but may not be available for distribution until a future date or occurrence. Vesting usually refers to the scheduled confirmation of ownership rights in qualified employee benefit retirement plans.
The right of an employee to retirement benefits whether or not the employee continues working for the employer. Usually earned over time.
The process by which an employee becomes entitled to benefits in a retirement plan.
The amount of time that an employee must work to guarantee that his/her accrued pension benefits will not be forfeited even if employment is terminated.
relates to superannuation - super benefits are vested when a member becomes fully entitled to the benefits. Effective from 12 May 2004, as a result of changes in the 2003/04 budget, all members benefits in an accumulation super fund become the members minimum benefits unless certain conditions were met.
Nonforfeitable ownership (or partial ownership) by an employee of the retirement account balances or benefits contributed on the employees behalf by an employer. The Tax Reform Act of 1986 established minimum vesting rights for employees based on their years of service—full vesting in five years or 20% vesting per year starting by the end of the third year.
relates to superannuation, an employee's entitlement to optional employer superannuation contributions. Vesting is usually expressed on a scale, for example for each year of service employees are entitled to a further 20% of optional employer contributions. This means that after 5 years of service an employee is entitled to 100% of these contributions if they leave the employer.
The TRS vesting period is five (5) years of creditable service. A vested TRS member is eligible to receive retirement benefits upon reaching retirement age. The ORP vesting period is "1 year and 1 day" with vested status conferred on the first day of the 13th month of participation. A vested ORP member has ownership rights to the employer portion of retirement contributions.
The rights that an employee gains for working at a firm for a specific length of time.
In pension terms, the right of an employee to all or part of the employer's contributions, whether in the form of cash or as a deferred pension.
the process where the right to or interest in property becomes the subject of entitlement by someone else
A process by which employees accrue non-forfeitable rights to employer contributions that are made to the employee's qualified retirement plan account.
The entitlement to full pension plan benefits. Normally expressed as the number of months and years of employment required to be vested. Top of 'V'
The inclusion of all or part of the employer contributions in the benefit payment to a member who leaves his or her employment before being eligible for a retirement benefit. 'Full vesting' means that the member is entitled to all of the employer contributions, while 'partial vesting' means that only a portion of the employer's contributions are applied to the member's benefit. A 'vesting scale' sets out the rate at which, over the period of employment, the employer's contributions vest in the member. In general, vesting scales now apply to only a limited number of schemes, most of which have been in operation for many decades. Almost all superannuation funds now provide for full vesting for all their members.
In law, vesting is to give an immediately secured right of present or future enjoyment. In plain English, one has a right to a vested asset that cannot be taken away by any third party, even though one may not yet possess the asset. When the right, interest or title to the present or future possession of a legal estate can be transferred to any other party, it is termed a vested interest.