What is cliff vesting?
Cliff vesting means an employee becomes 100 percent vested (and entitled to the full amount of promised pension benefits) all at once. When an employer offers graduated vesting, the employee obtains the absolute right to his benefits over time. For instance, an employee might become 20 percent vested after one year; 50 percent vested after two years and 100 percent vested after three years. With cliff vesting, an employee who leaves the company before the designated vesting time will leave with no portion of the employer-provided retirement benefits at all.
→ Read More