James Callaghan has worked full-time for BC Metals for four years. He has learned from the HR manager that his earned pension benefits cannot be revoked by the employer. Why is this so?

A) because the employer expects him to work until retirement
B) because the benefits are vested
C) because the union would strike if they are revoked
D) because the benefits are defined

Question

Vince Sanders · Accepted Answer

Final Answer : B, Explanation :  The benefits are vested, meaning James Callaghan has earned them fully by working for the required period, and they cannot be taken away by the employer. Vesting gives employees a legal right to pension benefits they have accrued.

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