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 ?
Senator Joe Manchin (D-WV) today introduced the Prioritizing Our Workers Act (POWA), legislation that would revise the priorities section of the bankruptcy code to place unpaid vested benefits in defined benefit pension plans at the front of the line.
In addition, retiree data was not current on the company's systems, and the vested benefits of past terminations were unreliable, Sorenson notes.
Unisys Corporation (NYSE: UIS) has completed a lump-sum offer for eligible former associates who have deferred vested benefits under the company's US pension plan to receive the value of their entire pension benefit in a lump-sum payment.
First, many firms have offered buyouts to terminated employees with vested benefits.
For many multiemployer plans, the result has been inversion of the pyramid: fewer dollars flowing in from fewer employers and for fewer active employees, while the number of individuals having vested benefits for themselves and their spouses swells.
Under applicable ERISA provisions, stopping contributions was deemed a withdrawal from the Teamsters Fund, in which case Scott Brass became liable for its proportionate share of the Teamsters Fund's unfunded vested benefits, totaling approximately $4.
In this rare scenario, a CASD SERP will typically deny the executive all vested benefits and make the credit union the sole owner of the policy.
Calculating a plan's unfunded vested benefits under the PBGC variable-rate premium rules; and
The Retirement Equity Act was passed due to the "inequitable" possibility that the surviving spouse would receive "no survivor benefits under the plan even though the participant had accrued significant vested benefits before death.
Withdrawal liability is a share of the plan's unfunded vested benefits, if any, usually based on the employer's share of total contributions to the plan.
In the case of an employee who has no vested benefits, years of service with the employer maintaining the plan before any period of consecutive 1-year breaks in service need not be taken into account if the number of consecutive 1-year breaks in service within such period equals or exceeds the greater of five, or the aggregate number of years of service before such period.
The new product is suitable for investments in both 2nd pillar vested benefits and 3rd pillar private pensions.