Vesting schedules

A vesting schedule is a table that determines when your company's contributions become non-forfeitable to an employee. You define the vesting schedule based on years of service.

When you attach a vesting schedule to a benefit plan, you define the minimum number of hours that must be worked in a plan year, to have that year count toward vesting. You can also use a pay class to determine which hours are counted.

You use vesting schedules for defined benefit and defined contribution plans. You can assign the same vesting schedule to multiple plans, or if vesting is different for each plan, you can assign a different schedule to each plan. This table illustrates an example vesting schedule.

Number of years	Percent Vested
Less than 2 years	0%
2 years	40%
3 years	60%
4 years	80%
5 or more years	100%