An Employer Opts for Cliff Vesting in One of Their

question 28

Multiple Choice

An employer opts for Cliff vesting in one of their defined contribution plans under the Pension Protection Act of 2006.Here, an employee can obtain full vesting of employer contributions:

• A)after three years.
• B)at the retirement age.
• C)after two years.
• D)at the vesting age determined by the company.
• E)at the vesting age specified by ERISA.

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Definitions:

Right-Skewed

Describes a distribution of data where the tail on the right side of the histogram is longer or extends further than the tail on the left side, indicating that the median is less than the mean.

Standard Deviation

A metric that calculates the spread or variability of a dataset in comparison to its average, showing the extent to which the data points deviate.

Normally Distributed

Describes a distribution of data that forms a symmetric bell curve, indicating that the data follows a normal distribution pattern.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean.