« previous next »

Author Question: The Pension Benefits Guarantee Corporation guarantees both defined benefit plans and defined ... (Read 46 times)

CharlieWard

  • Hero Member
  • *****
  • Posts: 578
on: Jul 7, 2018
The Pension Benefits Guarantee Corporation guarantees both defined benefit plans and defined contribution plans.
 
  Indicate whether this statement is true or false.

Question 2

What are vested funds? What is the difference between cliff vesting and graded vesting?
 
  What will be an ideal response?


brbarasa

  • Sr. Member
  • ****
  • Posts: 308
Reply #1 on: Jul 7, 2018
Answer to Question 1

Answer: FALSE

Answer to Question 2

Answer: Vested funds are the money employer and employee have placed in the latter's pension fund that cannot be forfeited for any reason. The employees' contributions are always theirs, of course. Employers can choose one of two minimum vesting schedules (employers can allow funds to vest faster if they wish). With cliff vesting, the period for acquiring a nonforfeitable right to employer matching contributions (if any) is three years. So, the employee must have nonforfeitable rights to these funds by the end of three years. With the second (graded vesting) option, pension plan participants must receive nonforfeitable rights to the matching contributions as follows: 20 after 2 years, and then 20 for each succeeding year, with a 100 nonforfeitable right by the end of 6 years.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Oceanic Crust Has a Well-defined Internal Structure Oceanic Crust Has a Well-defined Internal Structure
Percentages of adolescents indicating Benefits and Costs of employment. Percentages of adolescents indicating Benefits and Costs of employment.
At breakfast, a middle-class husband sits absorbed in the newspaper and the public affairs of the da At breakfast, a middle-class husband sits absorbed in the newspaper and the public affairs of the da
Apple Corporation, Macintosh computer, Cupertino, California. Apple Corporation, Macintosh computer, Cupertino, California.
Among the health benefits of marriage is a longer life. Among the health benefits of marriage is a longer life.
The following information relates to the Cutting Department of Kittina Corporation for the ... The following information relates to the Cutting Department of Kittina Corporation for the ...
Video: Appendicitis Animation

For a complete list of videos, visit our video library