If Your Retirement Plan Has a Vesting Requirement, It Must

question 7

Multiple Choice

If your retirement plan has a vesting requirement, it must be

• A)an employer sponsored retirement plan.
• B)a defined-benefit plan.
• C)a defined-contribution plan.
• D)a locked-in retirement plan.

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Definitions:

Punitive Damages

Financial compensation awarded to a plaintiff in a lawsuit, intended to punish the defendant for particularly harmful behavior.

Novation

Novation is the legal process by which an existing contract is replaced with a new contract, involving the same or different parties, where the obligations of the original contract are extinguished and replaced by new obligations.

Exemption Clause

A contractual provision that seeks to limit or exclude one's liability in certain situations, often subject to legal scrutiny for fairness.

Fundamental Breach

A serious violation of a contract that allows the aggrieved party to terminate the agreement and sue for damages.