What is vesting?
Vesting is a means of guarding against changes in septic regulations before you build. An approved septic design can be vested for 3 years. An installed approved septic system can be vested for 2 years. A Vesting Certificate transfers with the property if it is sold. A septic plan check must be performed to receive a vesting certificate. 2 sets of plans must be submitted. One set will be retained by PRMD and the other set will be returned to the applicant stamped “Vested” at time of approval. Fees will be charged per the current fee schedule.
Vesting is a guarantee that you will receive the benefits you have earned, regardless of whether you are still working for that particular employer at the time you retire. Pension plans specify a certain amount of time (usually five years, under current federal law) needed before you become vested.
Vesting is another term for who “owns” the money you have in your retirement plan account. Generally, this is determined by a) who contributed the money to begin with, and b) how long you’ve been employed by your firm. The contributions you make are always 100% vested, meaning any money you contribute to the plan always belongs to you. Many plans also feature “matching contributions,” in other words, those your company makes for you to your account. Generally, the value of the amount of matching contributions you “own” increases in accordance with the amount of time you work for your firm. For example, you may own 20% of the value of the “matching contributions” after 1 year of service, 60% after three years and 100% after 5 years. Once you are fully vested, all contributions to the plan made on your behalf are yours to keep.
Vesting refers to ownership of your account. Your own payroll contributions, any rollover contributions you add from a previous account and any earnings on those monies, are always 100% vested. That means they always belong to you. However, any matching contributions made by your employer, and earnings on those contributions, are not immediately yours to keep. Those monies vest to your account on a schedule determined by your years of service with your employer.
