Being vested in a pension means that you have earned enough service credit to qualify for a pension benefit once you meet the minimum age requirements established by your retirement plan. Vesting is a legal term common to employer-provided benefits that means to give or earn a right to a present or future payment, asset, or benefit. When youre vested in a retirement plan, it means you own some or all of the money in your account. The rules for vesting vary from plan to plan. For example, SEP individual retirement accounts (IRAs), SIMPLE IRAs, and other employer-sponsored IRAs require that all of the money in these accounts is always 100% vested. Government workers, such as teachers and police officers, who are members of a pension plan usually arent vested until theyve put in five to seven years of service. Members of government pension plans often qualify for benefits based on a combination of their age and their years of employment. Once you become vested, you will be eligible for a retirement benefit even if you leave public employment. You may apply to receive your vested retirement benefit at a later date. This “vested retirement benefit” would be based on service and salary earned when you were an active member.