Question

11. Evaluating employer plans Aa Aa E What Retirement Plan Options Are Available? You are either a current employee or a future one, and it is your responsibility to make sure that you familiarize yourself with the basic and supplemental (voluntary) plans an employer may offer, Recall that there are noncontributory and contributory pension plans. These often stipulate vesting requirements. Within these type of plans, there is a defined contribution plan or a defined benefit plan. Also, many employers offer supplemental or voluntary programs such as profit-sharing, thrift and savings, and 401(k) plans. Jordan and Megan are new employees. They've been reviewing the information they gathered at a new-employee benefits meeting they attended today. They both have taken a personal finance class, so they are helping each other complete the notes they've taken. Jordan: I heard the HR manager say that the company uses the cliff vesting schedule. I'm not sure what that means Megan: vesting over Oh, I remember this from personal finance class. Cliff vesting requires years. gradual full Jordan: What's the other option? Megan: Graded schedule. Vesting is Over years.