The term vested means that you have earned or accrued the right to a retirement benefit payable at a later date even if you terminate employment before you retire. In most plans, if you withdraw your accumulated contributions and interest, you lose your service credit and the right to a future benefit. You must earn at least five years of eligibility service to be vested (eight years of service credit is required in the Legislative Pension Plan). If you leave eligible employment after you are vested and do not withdraw your accumulated contributions, you will receive a monthly retirement benefit when you reach normal retirement age. There is immediate vesting upon taking office for an individual who is a secretary of a principal department or a head of a department, office, or other unit of State government who serves at the Governors pleasure. • When can I collect my vested benefit? It depends on the plan where you have your vested service. Full payment is based on your age: Plan ...
A. Vested means the amount of the employer contribution which you are entitled to based on your years of service with the company. All employee deferrals are 100% vested. Employer contributions such as match and profit sharing are generally subject to a vesting schedule which increases with your years of service with the company. Your vesting computation stops on the date which you terminate service with the employer.
A. If your pension is "vested", it means that you are unconditionally entitled to receive a pension, either now or in the future, even if you terminate your employment before retirement age. Once you become vested you are entitled to either an immediate or deferred pension, as opposed to simply a return of your own contributions. Being vested also implies that you get the benefit of your employer's contributions as opposed to just your own contributions.
Vesting is a term commonly used to signify the right to a retirement allowance at a later date. Vested benefits are those benefits which a member is entitled to today, not based on additional service.