Define vesting period
Introduction:
The concept of vesting is generally used in the concept of retirement planning benefits.
Answer:
In law, vesting is a process by which the right-holder is immediately granted a secured right of present or future deployment. Under any circumstances, a “vested right” secured the holder’s right to an asset in such a way that it cannot be taken away by any third party.
Vesting is carried out for almost every qualified retirement plan an organization has to offer. An account is opened for the employee in any qualified retirement plan or pension plan, and the employer’s contributions are also made in that account only. Even though an employer also makes the contribution, an employer cannot withdraw or claim that amount.
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