Vesting, Immediate
Employee's full entitlement, with no waiting period, to benefits under a pension or retirement plan. In the case of a contributory plan, there is immediate vesting of the employee's own contributions, plus the earnings attributable to those contributions. As to employer contributions in contributory and noncontributory plans, vesting depends on the terms of the plans, although maximum time limits for full vesting are set by law. Some plans provide immediate vesting of employer contributions in the case of death or disability, simplified employee pension (sep) plans require immediate vesting of employer contributions.
Popular Insurance Terms
Dividend in a participating policy paid after the death of an insured, representing dividends earned between the last dividend date and the insured's death. ...
Insured plan under which the insurance company agrees to provide the insured with a series of benefits on a benefits-paid basis plus administrative services on a stipulated-fee basis. This ...
Same as term Deductible: amount of loss that insured pays in a claim; includes the following types: Absolute dollar amount. Amount the insured must pay before the company will pay, up to ...
Single policy under which individuals in a natural group (such as employees of a business firm) and their dependents are covered. ...
Transfer of the cash value of the policy from the policyowner to the policyowner's creditor as security for a loan. ...
Insurance written for a period of time greater than one year. ...
Means, in pension plans, by which a projection is made of benefits credited to each employee's account at retirement age. Costs are then allocated on a level basis over a specified future ...
Insurance that combines features of flexible premium life insurance and universal life insurance into one policy in the following manner: Premiums after the required minimum initial premium ...
Coverage under a homeowners insurance policy in the event that a credit card is fraudulently used or altered. Fraud includes theft and the unauthorized use of a credit card. ...
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