Practice Quiz

Paralegal Exam Prep

Category - Legal Envrmt

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Kyle was just hired by Kryton, Inc. Part of his benefit package included a pension plan to which Kryton contributed. Under the plan rules, Kyle would receive the full amount of Kryton's contributions after he worked for Kryton for 3 years. This concept is called:
  1. ERISA
  2. Vesting
  3. Employee benefits
  4. Defined contribution
  5. Service
Explanation
Answer: B. This concept is called vesting. Vesting is the method by which employees earn a non-forfeitable right to employer contributions in a pension plan. Employees always have a non-forfeitable right to employee contributions. Vesting schedules can vary from 0-6 years.
Category: Legal Environment
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