Vesting Refers to

question 2

Multiple Choice

Vesting refers to

• A) how long until an employee owns any employer contributions to the employee's pension plan.
• B) how long until an employee can transfer any of their own contributions to a new plan if they switch jobs.
• C) eligibility requirements to retire early.
• D) restrictions on asset allocations within a defined contribution plan.
• E) the extent to which an employee materially participated in a given business in a given year. The book uses the word vesting in a different manner to refer to the time until one is eligible to receive any pension benefits.