At points after the implementation of ERISA, there were graded vesting schedules as long as 10 years and every few years, we would be forced to eliminate the 7-year schedule for certain law changes. I always say that there will be a day when all contributions will be required t be fully vested and employers are pointing that way too.<\/p>\n
How so? According to Vanguard, nearly half of plans they served as recordkeeper, immediately vested participants in employer matching contributions, while 25% of plans with employer matching contributions used a 5- or 6-year graded vesting schedule.<\/p>\n
I think more and more employers will see 401(k) plans as an effective tool to retain and recruit employees, so they willfully vest contributions before it\u2019s mandated by the government.<\/p>\n
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