CHARLES: I heard the HR manager say that the company uses the cliff vesting schedule. I$$m not sure what that means.

DINA: I remember this from personal finance class. Cliff vesting requires vesting over years.

CHARLES: What$$s the other option?

DINA: The graded schedule. Graded schedule assumes that vesting is over years.

CHARLES: Did you understand everything about the pension plans? Could you help me there?

DINA: Sure! A pension plan is a plan, which means that the contribution cost is $.$ In addition, it is a defined plan, which means that the plan states how much have to contribute.

CHARLES: I heard the HR manager say that they offer two supplemental plans, but I only wrote down the profit$-$sharing plan. Under this type of plan, your account on the company$$s performance. This is because when profits are low, the company makes contributions to the plan, and when profits are high, it pays $.$ However, employers minimum and maximum amounts to be paid as contributions. What is the other plan?

DINA: The other plan she mentioned is $.$

CHARLES: Because our employer is a big Fortune $500$ company, our plan is voluntary. It takes everyone$$s and heavily invests it in company stock.

DINA: Well, I think I have my notes complete. I may need to clarify a few things that will apply just to me$,$ vesting, profit$-$sharing percentages, and retirement age.

CHARLES: Agreed. Thanks for helping me complete my notes!