Question

When Kimberly begins working for Pharmco Industries the company tells her that at a future after so many years of employment with the company she can receive retirement pay. Her rights to receive pay upon retirement would be considereda. vested.b. accrued.c. sheltered.d. inferred.

Answer 1

Answer:

The correct answer is a. vested.

Explanation:

Retirement is the administrative act by which an active worker, whether self-employed or employed, goes into a passive or inactive situation, after reaching the maximum age, or due to serious chronic illness or disability. He then obtains a monetary benefit for the rest of his life. The labor legislation of each country stipulates different conditions in this regard.

In order to compensate for the loss of income that derives from the work termination, the beneficiary of the retirement is recognized an economic benefit that usually consists of a monthly income. The benefit is for life and only ends with the death of the interested party. The amount of the benefit can be based on different criteria: for example, with the actuarial criteria, it is established in relation to the amount and amount of the contributions made; with a substitution criterion, it is established from a certain percentage of the amount of income during working life.

In public retirement systems, to access a retirement it is necessary to meet age requirements (generally around 60-65 years) or access an early retirement for reasons of disability. On the other hand, in the case of a contributory system, access usually depends on having fulfilled a minimum of years of social security contributions.