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What is Vesting?
Vesting is where an employer makes contributions on behalf of a particular employee as indicated in a Vesting Schedule. The employer has the option to allow the employee to access the contribution immediately or over a period of time.
An effective way to attract, retain and reward employees.
Promotes the company’s ownership and encourages better work performance.
Employer’s contribution is provisional and can be clawed back upon non-fulfilment of condition (e.g. resignation).
Maximise tax savings though additional contribution to the employee’s retirement fund.
Key Features of AIA PRS Vesting
Different plan for different group:
e.g. Senior Management, Executive and Clerical with different plans in AIA PRS
-detail of PRS contribution to help employer prepare payment for the scheme
Multiple fund selection in a single contribution:
e.g. 40% in AIA PAM-Growth Fund and 60% in AIA PAM - Moderate Fund
Employee's contribution through salary deduction and employer's contribution via vesting schedule in one billing and payment
Flexible vesting computation:
e.g. based on date of employment ("DOE") or date of participation ("DOP")
Flexible contribution frequency:
e.g. monthly contribution, quarterly contribution, yearly contribution and / or lump sum contribution
Types of Vesting Schedule