Question
Andy joined his employer's defined contribution pension plan on January 1, 2017, when he was first eligible. The plan, which had a two-year vesting schedule,
Andy joined his employer's defined contribution pension plan on January 1, 2017, when he was first eligible. The plan, which had a two-year vesting schedule, required employee and employer contributions. Andy terminated employment with his employer on March 30, 2018. During the time that he participated in the company pension plan; Andy contributed $3,750 while his employer also contributed $3,750 on Andy's behalf. Which of the following statements is true with regard to Andy's financial entitlement upon termination from the plan?
Question 1 options:
Andy is entitled to $7,500, the sum of his and the employer's contributions | |
Andy's only entitlement is the current value of his $3,750 of contributions plus interest earned | |
Andy is entitled to return of his $3,750 of contributions plus interest, as well as $2,812.50 in employer contributions | |
Andy's termination prior to the end of the vesting period results in the loss of his and his employer's contributions |
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