Which of the Following Is an Option for an Employee

question 83

Multiple Choice

Which of the following is an option for an employee under the mandatory vesting established by ERISA:

• A) to have 100 percent vesting after 10 years of employment
• B) to have 25 percent vesting after five years, then 5 percent vesting a year for five years, then 10 percent vesting a year for five years, to achieve 100 percent vesting in 15 years
• C) vesting under the rule of 45
• D) all of the other specific choices are correct
• E) none of the other specific choices are correct

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Definitions:

Replacement Stream

A sequence of cash flows expected to be received or paid over time in order to replace an asset or meet an obligation.

Economically Equivalent

Economically equivalent means having the same or similar economic effect or value when comparing two or more financial situations or variables.

Economic Value

Refers to the worth of a good or service, as determined by the market or its utility to an individual or business.

Missing Value

An absent data point or piece of information that was not recorded or is unknown in a dataset or equation.