Vesting Explained
8 January 2026
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In an Approved REtirement Savings Plan, the Rules must address the benefits which are payable as a result of a Plan Member's Termination before s/he is eligible for the benefits payable as a result of disability, old age, and death. Most Plan Rules usually address the benefits which are payable as a result of voluntary termination and not involuntary termination or redundancy.
Vesting addresses whether or not after your termination date you will be eligible to a benefit which is based on the Employer's contribution and payable at disability, old age, and death. Vesting rules for an Employer's contribution are not the same for Employer-sponsored Superannuation Funds and Employee-sponsored Retirement Schemes.
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