An employer provides a defined benefit plan and has opted for graded vesting.Under this plan, the employees are eligible for 80 percent of employer contributions after four years.

Question

Quizplus · Accepted Answer

Under a graded vesting schedule in a defined benefit plan, employees become vested in their benefits gradually over time, but not as abruptly as 80% after four years. Typically, graded vesting increases an employee's vested percentage each year until they are fully vested, rather than jumping to a high percentage like 80% after a specific year.

An Employer Provides a Defined Benefit Plan and Has Opted