Expected vesting period and pension liabilities

CFA Level III
#1

Hello,

can someone explain to me how expected vesting period impact pension liabiatilies?

#2

The shorter the vesting period, the higher the liability per employee, all else equal.

1 Like
#3

Vesting period refers to the period during which you can earn your rights by fulfilling certain conditions= the shorter vesting period= potential for higher liabilty.