The unvested amount that remains in a pension or profit sharing plan when a participant leaves the plan and withdraws the amounts which are vested. Forfeitures may occur when an employee is terminated, for example. Forfeitures must either be used to reduce the plan sponsor's future contributions to the plan or be reallocated to other participants.----------[ Back
The recapture by the employer of nonvested employer contributions. Used to pay plan expenses or for future employer contributions.
the benefits that a participant loses if he or she terminates employment before becoming eligible for full retirement benefits under the plan. The difference between the total benefit and total vested benefit.
Plan assets surrendered by participants upon termination of employment before being fully vested in the plan. Forfeitures may be distributed to the other participants in the plan or used to offset employer contribution.
A term included in ESOPs designed to provide deferred share benefits. A share subject to forfeiture means that it may not vest to (that is, may be forfeited by) a participant in certain circumstances, including in the event of gross misconduct.
an amount an employee loses by terminating employment before becoming fully vested under the plan's vesting schedule. In flexible spending accounts, the amount an employee loses if any money remains in the account after the claims filing deadline.
The employee's loss of unvested funds or options due to either termination or an action by an employee which, based on plan rules, results in the loss of unvested funds, awards or holdings.
Any pension plan account balance abandoned by participants who leave the plan before they have a right to keep those benefits.