Define: Vested Benefit

UK Accounting Glossary

Definition: Vested Benefit


Quick Summary of Vested Benefit


A benefit to which an employee has full entitlement and one which he will retain in any circumstance.




What is the dictionary definition of Vested Benefit?

Dictionary Definition


A vested benefit is a benefit to which an employee has full entitlement and one which he will retain in any circumstance.

In any companies benefits such as pension entitlements or shares don’t become vested benefits until an employee has served the company for a stated number of years; In this instance if the employee leaves the company prior to this time, any benefits may be forfeit.

Whether or not benefits are vested will ultimately affect the accounting value of an entity’s obligations under a defined-benefit pension scheme or employee share plan.


Advertisement



Full Definition of Vested Benefit



Advertisement



Vested Benefit FAQ's


What is a vested pension benefit?

Being vested means you are entitled to receive a pension benefit equal to the value of your individual defined contribution account. This includes the contributions you have made (if any), and your employer’s contributions, plus the interest or investment return credited to the contributions.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/vested-benefit/
Modern Language Association (MLA):
Vested Benefit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 19, 2019 https://payrollheaven.com/define/vested-benefit/.
Chicago Manual of Style (CMS):
Vested Benefit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/vested-benefit/ (accessed: November 19, 2019).
American Psychological Association (APA):
Vested Benefit. PayrollHeaven.com. Retrieved November 19, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/vested-benefit/

Definition Sources


Definitions for Vested Benefit are sourced/syndicated from:


This glossary post was last updated: 5th May 2019.