cliff vesting

Definition

A characteristic of some retirement plans which specifies that employer matching contributions become the property of the employee all at once after a specified time period, rather than gradually.

Use cliff vesting in a sentence

The cliff vesting was preferred by the employee who was maxing out his contributions to his retirement throughout his career.

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The non-qualified pension plan established for the benefit of senior management provides a cliff vesting schedule upon the attainment of five years of service.

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Zack was glad that he had reached the five-year mark with his company so that the cliff vesting policy they had would allow him to hold on to his retirement savings when he switched jobs.

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vesting vesting period