The five-year cliff vesting alternative minimizes administrative expenses for a company and provides more vesting for long-term employees.

Question

Quizplus · Accepted Answer

The statement is true. With a five-year cliff vesting alternative, employees become fully vested in the company's retirement plan after five years of service, which minimizes administrative expenses for a company. This option also provides more vesting for long-term employees, as they are more likely to remain with the company for five years or more.

The Five-Year Cliff Vesting Alternative Minimizes Administrative Expenses for a Company