An employer experiencing high turnover and seeking to reduce pension cost is likely to prefer:
A)full vesting after three years.
B)full vesting after six years.
C)full vesting after seven years.
D)partial vesting after two years.

Question

Quizplus · Accepted Answer

Full vesting after three years allows employees to leave the company with their full pension benefits after only three years of service. This is likely to be preferred by an employer experiencing high turnover, as it will reduce the cost of providing pension benefits to employees who leave the company before they become fully vested.

An Employer Experiencing High Turnover and Seeking to Reduce Pension