Cliff Vesting
/ˈklɪf ˈvɛstɪŋ/
Definitions
- (n.) A provision in an employee benefit plan that requires a participant to work a specified continuous period before earning any rights to benefits.
Under the cliff vesting schedule, the employee receives no benefits rights if terminated before three years of service.
Forms
- cliff vesting
Related terms
See also
Commentary
Cliff vesting sharply contrasts graded vesting by granting full rights only after a defined period, which aids employers in retention and reduces administrative complexity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.