Which of the Following Statements Regarding Vesting in a Defined

question 88

Multiple Choice

Which of the following statements regarding vesting in a defined benefit plan is correct?

• A)Under a cliff vesting schedule,a portion of an employee's benefits vest each year.
• B)Under a graded vesting schedule,an employee's entire benefit vests all at the same time.
• C)When an employee's benefits vest,she is entitled to participate in the employer's defined benefit plan.
• D)When an employee's benefits vest,she is legally entitled to receive the benefits.To vest in a benefit means to be legally entitled to receive it.

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Definitions:

Preferred Outcome

The most favored or desired result in a decision-making process, often involving strategic considerations or personal preferences.

Unanimity Property

A principle requiring all parties involved to agree entirely on a decision, often used in decision-making processes to ensure consensus.

Ranking

The process or result of ordering items or individuals based on certain criteria, from highest to lowest or vice versa.

Outcomes

The results or consequences of actions, often used in the context of evaluating the effectiveness of policies or interventions.