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Investments glossary

Graded Vesting


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JACK NICHOLSON: My point of view, while extremely cogent, is unpopular. LOS ANGELES TIMES: Which is? JACK NICHOLSON: That the repressive nature of the legalities vis-a-vis drugs are destroying the legal system and corrupting the police system. LOS ANGELES TIMES: Let\'s talk about acting for a minute.

— Jack Nicholson

Graded vesting is the process by which employees gain, over time, ownership of employer contributions made to the employee’s retirement plan account, traditional pension benefits, or stock options. Graded vesting differs from cliff vesting, in which employees become immediately 100 percent vested following an initial period of service; and immediate vesting, in which contributions are owned by the employee as soon as they start the job.


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