Vested rights in a pension plan refer to which of the following?

• A. The portion of pension benefits earned as service accrues that become non-forfeitable after vesting.
• B. The total value of all pension contributions made by the employee and employer.
• C. The right to withdraw a pension pot at retirement on a fixed schedule.
• D. The guarantee of a minimum pension regardless of service.

Answer: (A)

Vesting concerns the rights you have to benefits already earned through your service. Vested rights are the portion of pension benefits that, once you meet the vesting conditions, become non-forfeitable and belong to you even if you leave the employer before retirement. This means the benefits tied to your service that have become vested will be paid to you or kept in your pot regardless of future changes in employment.

The other statements describe total plan contributions, access to the pension pot at retirement, or a guaranteed minimum pension, none of which define vesting. Vesting is specifically about securing a non-forfeitable claim to the benefits earned through service.