An employer seeking to use pensions to reduce turnover is likely to prefer:
A) fully vested after three years.
B) vesting 20 percent after 2 years and 20 each year thereafter.
C) fully vested after two years.
D) vesting schedules are unlikely to affect turnover.

Question

Quizplus · Accepted Answer

A vesting schedule that gradually increases the vested percentage over time, like option B, encourages employees to stay longer to receive more of their pension benefits, thus reducing turnover.

An Employer Seeking to Use Pensions to Reduce Turnover Is