Which term describes Steve's right to his benefits under the registered pension plan after being downsized?

Which term describes Steve's right to his benefits under the registered pension plan after being downsized?

• A. Delisting
• B. Amortizing
• C. Vesting
• D. Underwriting

Answer: (C)

The term that describes Steve's right to his benefits under the registered pension plan after being downsized is vesting. Vesting refers to the process by which an employee earns the right to keep their employer's contributions to their retirement plan, even if they leave the company. Once benefits are vested, they are legally owned by the employee and cannot be forfeited, which is crucial in the context of downsizing or leaving an organization. The other terms listed do not apply in this context. Delisting usually refers to the removal of a company's stock from a stock exchange, which has no relevance to pension benefits. Amortizing pertains to the gradual repayment of a loan or the spreading out of expenses over a period of time, which does not relate to employee rights regarding pension plans. Underwriting involves assessing risk and determining premiums in the insurance sector, further distancing its relevance from the concept of pension benefits and employee rights. Thus, vesting accurately captures Steve's secure entitlement to benefits in a registered pension plan in the event of downsizing.

The term that describes Steve's right to his benefits under the registered pension plan after being downsized is vesting. Vesting refers to the process by which an employee earns the right to keep their employer's contributions to their retirement plan, even if they leave the company. Once benefits are vested, they are legally owned by the employee and cannot be forfeited, which is crucial in the context of downsizing or leaving an organization.

The other terms listed do not apply in this context. Delisting usually refers to the removal of a company's stock from a stock exchange, which has no relevance to pension benefits. Amortizing pertains to the gradual repayment of a loan or the spreading out of expenses over a period of time, which does not relate to employee rights regarding pension plans. Underwriting involves assessing risk and determining premiums in the insurance sector, further distancing its relevance from the concept of pension benefits and employee rights.

Thus, vesting accurately captures Steve's secure entitlement to benefits in a registered pension plan in the event of downsizing.