What does it mean to be fully vested Meaning and Definition

Pronunciation

/what dəs ɪt mēn t’uː biː fʊl-diˈvɛst/ 🔊

Part of Speech

Noun

Definition

In the context of employee benefits, being fully vested means that an employee has earned or acquired the right to retain, use, or transfer a benefit, such as stock options, pension fund contributions, or insurance premiums, without any restrictions or penalties.

Examples

• The company’s stock option plan allows employees to be fully vested after five years of service.
• The pension fund requires a three-year vesting period before employees can access their retirement benefits.

Synonyms

• Ownership
• Retention

Antonyms

• Non-vested
• Restricted

Etymology

The term “vested” comes from the Old English word “vest”, meaning “to clothe”, which was used to describe the process of investing or accumulating something, such as benefits or property.

Usage Notes

This term is commonly used in the context of employee benefits, particularly in the United States. It is essential to understand the specific vesting schedule and requirements for any benefits or benefits programs.

Cultural References

The concept of being fully vested has been discussed in various media outlets, including business publications and podcasts.

Idiomatic Expressions or Phrases

This term is often used in idiomatic expressions, such as “vested interest” or “vested beneficiaries”, which refer to individuals or entities that have a direct or indirect stake in a particular outcome.

Related Words or Phrases

This term is closely related to concepts such as ownership, compensation, and employee benefits.

Collocations

This term is commonly collocated with words or phrases like “employee benefits”, “stock options”, “pension fund”, or “retirement plan”.

Common Misspellings

Some common misspellings of this term include “what does it mean to be fully visted?” or “what does it mean to be fully vistited?”.