Question

Claudia, a legal assistant, has been vested by her employer after having worked with the employer for ten years. This implies that she __________.

a. she can transfer her entire pension fund balances to a new employer’s plan if she moves to a new company
b. she will receive the amounts contributed by both the employer and herself when she retires
c. she will receive the maximum amount of pension available under her company’s retirement plan when she retires
d. she will receive the funds her employer has contributed to the retirement plan only if she is a member of the company while retiring

Answer 1

Answer: b. she will receive the amounts contributed by both the employer and herself when she retires

Explanation:

Since Claudia, has been vested by her employer after having worked with the employer for ten years, she will receive the amounts contributed by both the employer and herself when she retires

In this case, Claudia is vested and has the right to claim her funds in the retirement plan since she has worked for ten years.