Which of the Following Is True Regarding Vesting Requirements Under

question 8

Multiple Choice

Which of the following is true regarding vesting requirements under ERISA? ​

• A)once pension rights vest, employees are entitled to receive full pensions upon leaving employment
• B)once pension rights vest, employees' pension plans cannot be discontinued or changed
• C)vesting usually occurs after five or seven years of service
• D)vesting is never required but is purely a contractual provision negotiated between the employer and employee

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Definitions:

Negotiations

The process in which two or more parties with differing needs and goals discuss an issue to find a mutually acceptable agreement.

Alternative Dispute Resolution

A range of processes and techniques outside of the judicial system that are used to resolve conflicts or disputes between parties, including mediation and arbitration.

Mediation

A conflict resolution method involving a neutral third-party mediator who helps disputing parties reach a voluntary, mutually acceptable agreement.

Arbitration

A dispute resolution process in which a neutral third party makes a binding decision to resolve a conflict between parties.