Cliff vesting

Cliff vesting is the process by which employees earn the right to receive full benefits from their company’s qualified retirement plan account at a specified date, rather than becoming vested gradually over a period of time. The vesting process applies to both qualified retirement plans and pension plans offered to employees. Companies use vesting to reward employees for the years worked at a business and for helping the firm reach its financial goals. Graduated vesting, in which benefits accelerate with time, is the opposite of cliff vesting—Read more at Investopedia. Chen, James. “Cliff Vesting.” 12 April 2019.