What is a cliff vesting schedule?

Your plan may choose to provide a cliff or graded vesting schedule. For example, a two-year cliff allows you to claim 100% of the accrued employer contributions and all new contributions upon your two-year employment anniversary. Your plan’s vesting schedule is used to determine your vested percentage and to calculate how much employer contributions you are entitled to. See this article to learn more about vesting and below for examples of cliff vesting schedules:

1-Year Cliff Vesting  Percentage Vested 
Prior to 1 year of employment   0%  
After 1 year of employment  100% 
2-Year Cliff Vesting  Percentage Vested 
Prior to 2 year of employment  0%  
After 2 year of employment  100% 
3-Year Cliff Vesting  Percentage Vested 
Prior to 3 year of employment  0%
After 3 year of employment  100% 

You can use your vested percentage from the chart above and multiply by your employer contributions to calculate your vested balance. Your total amount vested can also be found in your Quarterly statement within your Participant Dashboard. See this article to learn more about what happens to your non-vested account balance if you leave your company.

 

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