What is cliff vesting?

Cliff vesting means an employee becomes 100 percent vested in the promised pension or 401K plan benefits all at once. The difference between cliff vesting and graduated vesting is that employees must stay with their current employer to qualify for benefits instead of accruing benefits over a set period of time. Employers often prefer cliff vesting because it ensures that employees are more likely to remain with the company for a long time.

UPDATED: Jul 19, 2023Fact Checked

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Jeffrey Johnson

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 19, 2023

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UPDATED: Jul 19, 2023

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We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

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