Author Question: Which of the following statements about the minimum vesting standards for a qualified defined ... (Read 63 times)

Mr3Hunna · **on:** Jul 11, 2018

Which of the following statements about the minimum vesting standards for a qualified defined benefit plan is (are) true?

I. Under cliff vesting, an employee must be at least 50 percent vested after 5 years of service.
II. Under graded vesting, an employee must be at least 20 percent vested after 3 years of service and 100 percent vested after 7 years.
A) I only
B) II only
C) both I and II
D) neither I nor II

Question 2

Under a unit-benefit formula, benefits are a function of both

A) earnings and years of service.
B) age and earnings.
C) age and gender.
D) years of service and position within a firm.