Vested Benefits

Vested Benefits

Benefits from a pension or other retirement account that belong to the employee and that he/she keeps regardless of his/her future employment with the company offering the pension. While different companies have different rules as to the number of years at which benefits vest, the time period is usually five years. If an employee quits before five years (or before the set time period), he/she loses the benefits that he/she has accrued up to that point. If the employee quits after the benefits vest, he/she may keep them.

vested benefits

Pension benefits that belong to an employee independent of his or her future employment. An employee usually becomes vested after five years of employment with the same firm, although there are numerous exceptions requiring longer employment. Compare pension plan.

Vested Benefits

Pension benefits owned by the taxpayer.
References in periodicals archive ?
retirees, former employees with vested benefits or employees who are eligible to retire prior to January 1, 2009.
From June 2007 onwards EU citizens will no longer have this option with the pension fund but will have to leave it in a vested benefits account in Switzerland until retirement, They will still be able to cash in any 3rd pillar investments.
Although certain technical exceptions exist to the nonforfeitability of vested benefits, but they are not relevant here.
Simply put, withdrawal liability is each company's share of the amount by which plan assets fall short of the value of vested benefits at any point in time.
Non-interest expense for the fourth quarter of 2009 declined from the third quarter of 2009 due primarily to a reversal of prior costs under the Company's Supplemental Executive Retirement Plans in the fourth quarter, concurrent with the termination of certain accrued liabilities for vested benefits, and the write-off of goodwill in the third quarter.
retirees, former employees with vested benefits or current employees who retire or terminate prior to January 1, 2008.
Also, vested benefits are not payable until a terminated employee has reached a pension plan's early retirement age, at the least.
However, the Company has obtained the consent of each SERP participant to release the Company from liabilities for vested benefits under the plans (except for those of a deceased former officer), which will enable the Company to reverse previous SERP costs totaling approximately $3.
In some cases, especially with lower-paid employee groups, employers find that employees will actually terminate employment just to receive a distribution of their vested benefits and then reapply for employment as soon as the distribution is received.
This bad pension legislation allows vested benefits to be cut essentially undermining the sanctity of the nation's private pension system.
The settlement would provide special pension benefits to over 200 workers at the Johnstown facility and deferred vested benefits for other workers, as well as health-care benefits, severance pay, and/or settlement bonus payments to workers depending on their years of service at the facility.
With respect to vested benefits, the Secretary of Labor is required to provide that the requirements are met if, at least annually, the plan updates the information on vested benefits in the benefit statement or provides in a separate statement the information necessary to enable participants and beneficiaries to determine their vested benefits.