What is a deferred vested participant?
A-6: An employee who terminates employment with a company after satisfying the plan’s vesting requirements and thus becomes entitled to receive the vested accrued benefit accumulated as of the date of termination. A deferred vested participant must normally defer commencement of benefits until reaching normal retirement age as defined under the plan (usually age 65). At this time, the participant will be entitled to commence the vested accrued benefit on an unreduced basis. Many pension plan allow a deferred vested participant to commence benefits on an actuarially reduced basis once the participant meets the plan’s age requirement for early retirement.
Related Questions
- One of our former employees has money in a NADART deferred account. Why didn’t he receive a participant statement along with my other participants statements?
- Can a participant consolidate his assets by rolling over funds from other plans into the Deferred Compensation Plan?
- Can a participant take out a loan from his/her Deferred Compensation Plan account?
