Definitions for "Vesting Schedule"
Schedule setting forth when, and to what extent, o... Add a comment
The rate at which employer contributions (made on behalf of participants) become an asset of the participant. This schedule is designated by the employer.
The schedule according to which an employee of a company acquires the right to receive employer-sponsored benefits, such as payments from a pension fund, profit-sharing plan, or other qualified plan or trust, based on length of service with the company. Under the Tax Reform Act of 1986, employees must generally be vested 100% after five years of service or at 20% a year starting in the third year of service and becoming 100% vested after seven years.