Your client's employing institution determines the vesting schedule for the basic retirement plan, which can be either immediate or delayed.
Vesting schedules apply only to employer contributions and earnings.
Since voluntary TDA plans such as our SRAs are funded entirely by employee contributions, clients who have SRA funds will always be fully and immediately vested. The maximum participation requirements for a plan with immediate vesting are two years of service and the attainment of age 21, or for educational institutions, one year of service and the attainment of age 26. The maximum participation requirements for a plan with delayed vesting are one year of service and the attainment of age 21. There are two types of delayed vesting. One is cliff vesting , in which your client works several years and then vests fully at a threshold date.