Employee contributions are always 100% vested in this plan. You own the contributions you make, and their earnings, at all times.
The contributions your employer makes on your behalf are vested according to the schedule your employer chooses:
- Immediate vesting. Employer contributions are 100% vested from the day you enroll.
- 5-year cliff vesting. Employer contributions are not vested until you have been employed for five years. On your fifth anniversary of employment, you are 100% vested.
- 7-year graded vesting. Employer contributions are not vested until you have worked for at least three years. After three, four, five, six, and seven years of service, employer contributions become vested 20%, 40%, 60%, 80%, and 100%, respectively. For computing the percentage, years of service are based on the date you were hired.