The Basics of Vesting With Your Employer

The Basics of Vesting With Your EmployerThe Basics of Vesting With Your EmployerThe concept of vesting is important to every employee of a firm offering benefits ranging from 401(K) matching contributions to restricted stock or stock options. Many employers offer these benefits as an incentive to join and/or remainwith the firm. Many of these benefits are subject to a vesting schedule. You should understand the language and terms for vesting in your employers various contribution plans before making a commitment. While some employer contributions are fully vested at the time they are provided, others are subjected to time limits and operate on an escalatingscale over time known as a vesting schedule. Example of 401(K) Contributions With Immediate Vesting One example is if your employer offers matching funds to your 401(K) deductions up to 10% of your total contributions. Lets say that you designate that $10,000 be put into your 401(K) this year. That means, your employer will con tribute an additional $1,000 (or 10%) in matching funds, with immediate vesting. The immediate vesting means that the contribution belongs to you in its entirety, although any withdrawals are subject to the IRS rules governing these plans. Example of Stock Grants That Might Vest Immediately or, Over Time Another example might be a firm that offers employees restricted stock grant on their hire date, with 100% vesting in the stock occurring on the employees third-anniversary date. This form of vesting is called cliff vesting and means that you have no claim on the items offered until the actual third-anniversarydate is reached. If you leave the firm after two years that means you would not be able to take (or cash in) any of your stock grants. An alternative to cliff vesting is graded (or graduated) vesting which is governed by a vesting schedule. Using the example above of the restricted stock grant, a graded approach might suggest that 25% of your shares vest in years one and t wo (for a total of 50%) and the remaining shares (valuing 50%) vest on your third anniversary. This way, if you leave the firm after your first year, you would have control of 25% of the shares, and so forth. Example of Stock Option Grant Vesting The use of stock options is common in many privately held start-ups and technology firms. This stock option offers the right to acquire a share of stock at a particular price on (or before) a particular date. Instead of a date, another right-to-acquire option might be a trigger event such as a change of control of the firm. In this case, change of control is merely a fancy term for the acquisition of your company by another firm. Entrepreneurs love this kind of vesting option. And why not. Lets say you have been granted 10,000 options with a stock price of $3.50 per share. If the terms of your stock option grant indicate that they fully vested at change of control and another firm acquires your firm at $4.00 per share, your options imme diately vest at the closing of the acquisition. This means you have the right to buy the 10,000 shares at $3.50 each and immediately sell them for $4.00 each, thereby making a profit of .50 cents per share. Example of Qualified Retirement Plan Vesting Many government, municipal, and education jobs offer a qualified retirement plan that is governed by a vesting schedule based on your years of tafelgeschirr. As your years of service increase so does your vesting percentage until you reach a maximum of 100% at a future anniversary date. However, if you leave your job prior to becoming fully vested, you receive a future retirement benefit at some percentage of the total, but not the total. The Bottom Line Pay close attention to the language surrounding vesting for any of the benefits offered by your employer that involve contributions. The vesting schedule you choose may dictate your career options, including choosing to remain with the firm until you reach an important anniver sary date.

Apply Now for a 2015 WISE Internship

Apply Now for a 2015 WISE Internship Apply Now for a 2015 WISE Internship ASME is currently accepting applications from engineering students who are interested in representing the Society in the 2015 Washington Internships for Students of Engineering (WISE) program. Applications for the internship, which will take place next summer, are due Dec. 31. Ranked as one of the best internships in the U.S. by the Princeton Review, the WISE program offers engineering students the opportunity to spend the summer in Washington, D.C., learning about the interaction of technology and public policy. The 2015 WISE internship term will take place from May 31-Aug. 1, 2015. Selected from a nationwide competition, WISE interns spend nine weeks learning how government officials make decisions on complex technological issues and how engineers can contribute to legislative and regulatory public policy decisions. At the end of the nine weeks, each intern finalizes a public policy paper on a topic of interest, and presents his or her findings on Capitol Hill. After the completion of her internship this August, ASME WISE intern Rebecca Ciez described the WISE program as a great experience to enhance an engineering education. The program draws on the diverse backgrounds of other students and mentors from a variety of fields, helping to enrich the policy research process, continued Ciez, an ASME student member. Having the opportunity to come to Washington and meet with elected officials and public servants working on science and technology issues gave me the unique skill platzdeckchen necessary for interacting with the policy space. Another 2014 ASME WISE intern, ASME student member James Gwinn, agreed. The WISE internship is a fantastic experience, he said. It is basically a nine-week-long, behind-the-scenes tour of our nations capital. The WISE program provided me with a unique perspective on the important role engineers play in the legislative process. ASME student members Rebecca Ciez (left) and James Gwinn served as ASMEs 2014 Washington Internships for Students of Engineering (WISE) interns for nine weeks this summer. To learn more about the 2014 ASME WISE interns and their papers, visit http//ppec.asme.org. In addition to third- and fourth-year engineering students, recent graduates who are beginning an engineering policy-related masters program will also be considered for the program. WISE interns will be provided housing in a dormitory on the campus of George Washington University, and receive a stipend to assist with living and travel expenses. Applicants for the WISE internship must be a citizens or legal permanent residents of the United States. For more information, or to apply, visit the ASME WISE program website at www.asme.org/about-asme/advocacy-government-relations/washington-internships-for-students-of-engineering. The 2015 WISE program is also seeking a Faculty Member-in-Residence, an individual who would be capable of teaching and mentoring engineering students on the interaction between engineering, technology and public policy. To learn more about the Faculty Member-in-Residences responsibilities, visit www.wise-intern.org/documents/PromotionalText_FMR_final2015.pdf. For more information on the WISE program, including the Faculty Member-in-Residence position, contact Melissa Carl, manager, ASME Government Relations, (202) 785-7380 or carlmasme.org. Melissa Carl, Government Relations

Federal Jobhunting Is Like a Sport You Have to Play to Win (and Learn the Game)

Federal Jobhunting Is Like a Sport You Have to Play to Win (and Learn the Game)Federal Jobhunting Is Like a Sport You Have to Play to Win (and Learn the Game)Federal Jobhunting Is Like a Sport You Have to Play to Win (and Learn the Game)5 Dos for Federal Jobseekers1. Make a commitment. A successful fedjob search could increase the opportunities available to you over the remainder of your career. Keep this in mind and commit to putting in the effort thats needed to be hired. Whether youre unemployed or just want a better situation, having your goal (the new punkt and the benefits it will bring) in focus will help motivate you. One guideline is to dedicate at least one and a half hours of prep time to each application.2. Get to know the rules. The rules for applying for federal jobs are unique and different from the private sectors. Get the know-how by studying the rules book -Troutmans insightful Ten Steps to a Federal Job. Then be aware that youll come across additional rules-some un disclosed-as you jobhunt. For instance, the procedures for the automated e-resume systems, such as Resumix and Quick Hire, change periodically. The way to be aware of the hidden changes is by being in the game and learning through trial and error.3. Become acquainted with the playing field. Like athletes who are intimately familiar with their field of play, youll need to know your targeted federal agencies inside and out. To research them, link to the agency websites from usajobs.opm.gov. Check out each agencys mission, current programs, customers, and new initiatives. Read their press releases. Also, stop by Washingtonpost.com to get up to date on related news. In addition, visit whitehouse.gov and scan the Presidents Agenda to see how it may be affecting the agencies youve selected.4. Determine your best position on the team. Job titles are worded differently in government. Lets say youre an office manager in the private sector. This position, in the federal arena, could be labele d an administrative manager, quality assurance manager, or production control manager, etc. How can you translate your job title into federal language? One option is to read through the vacancy announcements for an agency that interests you youll find the announcements thru the usajobs.opm.gov site by searching by agency. Analyze the job duties in the announcements, asking yourself which openings youre qualified for. What grade or salary level is appropriate for you? Once youve explored the possibilities, pick some jobs and go for it.5. Gather the right equipment. In the fedjob search game, your bat, ball and mitt will take the shape of superb federal resumes, KSAs, and cover letters. Using the right approach for these will be critical to your success. Examples of the correct formats are found in Troutmans all-new Federal Resume Guidebook, 3rd edition. To further strengthen the resumes and KSAs, select keywords from your vacancy announcements. If a particular announcement is sparse, refer to a similar, but longer announcement from a different agency to get more keywords. Throughout your application, be aya to highlight your best accomplishments in previous jobs.2 Donts1. Dont allow fear to cause you to strike out. Following up on your applications will be key to learning from practice. After all the effort youve made, you dont want to compromise your chances, or lose valuable feedback, because of hesitancy to call and check on your application. Expect to get voicemail, but know this isnt a dead end. If you leave a detailed and interesting voicemail message, youll usually get a call back. In your voicemail, include your name, the date your application was submitted, the vacancy announcement number, and your phone number. Speak slowly and clearly, using an upbeat and professional tone.2. Dont stick with the same old approach if it isnt working. If youve created a strong application package and are applying for the right openings, you should be getting calls and interviews and your federal jobhunt will be exciting. On the other hand, if youve been applying for months and theres been no response, something is wrong. Often the problem is with the resume-perhaps its unconvincing or the format isnt right. Maybe its time to get professional help with re-working it. Or your background and the openings youve chosen may not be matching up well. Make the necessary adjustments, continue viewing your efforts as practice, and look for further improvements in your technique along the way. Soon youll be in the swing of the intense sport of federal jobhunting