UK Accounting Glossary
A benefit to which an employee has full entitlement and one which he will retain in any circumstance.
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.
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.
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Definitions for Vested Benefit are sourced/syndicated from:
This glossary post was last updated: 5th May 2019.