Spanish translation: consolidación (de derechos de pensión)
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English to Spanish translations [PRO] Bus/Financial
English term or phrase:vesting
Vesting occurs when an employee achieves full ownership of his/her pension benefits -- that is, when the right to receive retirement benefits no longer depends on continued employment. Vesting schedules apply only to employer contributions and earnings on these contributions. The employee always retains ownership of his/her contributions.
Vesting can be either immediate or delayed. With immediate vesting, all contributions and earnings are the employee's to keep as soon as he/she meets the participation requirements and joins the retirement plan. Participation requirements are the conditions an employee must fulfill before joining the plan. A plan with delayed vesting may require an employee to work one year and be at least 21 years old before participating. The maximum participation requirements for a plan with immediate vesting are two years of service and the attainment of age 21. The maximum participation requirements for educational institutions with immediate vesting are one year of service and the attainment of age 26.
With delayed vesting, the employee doesn't have an immediate right to the contributions and earnings on those contributions made under the plan, even after meeting the participation requirements. Delayed vesting can serve two objectives: to reward employees with longer service, and to eliminate or reduce the cost of providing benefits to employees who leave after only a few years of service.