What retirement plan options are avaliable? It is always your responsibility to learn about the basic and supplemental (voluntary) plans an employer may offer. There are noncontributory and contributory pension plans, which stipulate vesting requirements. Within these types, there is either a defined contribution plan or a defined benefit plan. Many employers also offer supplemental or voluntary programs such as profit-sharing, thrift and savings, and 401(k) plans. Consider a dialogue between Felix and lanet, both new employees at a big Fortune 500 company, Both had taken a personal finance class in college several years ago. Today, they are reviewing their notes from the recent new-employee benefits meeting and helping each other complete the notes they've taken. FELIX: 1 heard the HR manager say that the company uses the cliff vesting schedule. I'm not sure what that means. JANET: I remember this from personal finance class. Cliff vesting requires vesting over years. FELIX: What's the other option? 3ANET: The graded schedule. Graded schedule assumes that vesting is over years. FELIX: Did you understand everything about the pension plans? Could you help me there? MNET: Surel A pension plan is a is much plan, which means that the contribution cost In addition, it is a defined have to contribute. plan, which means that the plan states how FELIX: Did you understand everything about the pension plans? Could you help me there? JANET: Surel A pension plan is a is is much plan, which means that the contribution cost . In addition, it is a defined plan, which means that the plan states how have to contribute. FELIX: 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? JANET: The other plan she mentioned is FELIX: Because our employer is a big Fortune 500 company, our plan is voluntary, It takes everyone's and heavily invests it in company stock. JANET: Well, I think t 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. FELIX: Agreed. Thanks for helping me complete my notes