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Your employer may use a schedule in which employees are 100 percent vested in employer contributions after 3 years of service (cliff vesting). Under graduated vesting, an employee must be at least 20 percent vested after 2 years, 40 percent after 3 years, 60 percent after 4 years, 80 percent after 5 years, and 100 percent after 6 years. If your automatic enrollment 401(k) plan requires employer contributions, you vest in those contributions after 2 years.
If you are vested in your employer's pension plan and you leave your job before you reach the company's official retirement age, the answer will depend on these factors: your age, years of employment, your accrued pension benefits and the rules of your pension plan. When you can start participating in the plan. 2  When your pension benefits become vested. 3  The vesting period is a certain number of years you must work before you are eligible to receive benefits (usually 1- 5 years). 4  How to file for pension benefits.