Question

Vested benefits are?

1) estimated benefits
2) to be received as a lump-sum payment
3) lost when employment is terminated
4) right to receive even if the employment is terminated

Answer 1

Vested benefits are the right of an employee to receive certain benefits even if their employment is terminated, such as retirement funds.

Step-by-step explanation:

Vested benefits refer to the right of an employee to receive certain benefits even if their employment is terminated. These benefits are typically related to retirement plans, such as pensions or defined contribution plans like 401(k)s. Unlike estimated benefits, vested benefits are not based on future projections or estimates, but rather on the actual rights an employee has acquired through their employment.

For example, let's say an employee has worked for a company for 5 years and has a vested benefit of $10,000 in their retirement account. Even if they choose to leave the company or are laid off, they still have the right to receive that $10,000 when they become eligible to access their retirement funds.

Therefore, the correct answer is option 4) the right to receive even if the employment is terminated.