What does retirement plan vesting determine?

Retirement plan vesting is a critical concept in employee benefits, as it specifically relates to the rights of employees concerning employer contributions made to their retirement plans. When an employee is vested in a retirement plan, it means they have earned the right to keep the contributions made by their employer, even if they leave the job before reaching retirement age.

Vesting schedules determine how long an employee must work for an organization before they gain full rights to these employer contributions. This does not affect the employee's own contributions, as they are always fully vested in their own savings. Understanding vesting is important for both employees, who need to know how long they need to stay at a job to claim these benefits, and employers, who must consider how vesting affects their workforce retention and benefits strategy.

In contrast to the other choices, which focus on aspects like eligibility or the amount of contributions, vesting specifically pertains to the retention of employer contributions, making it the correct answer.