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# A requirement of traditional pension plans is that an

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A requirement of traditional pension plans is that an [#permalink]

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02 May 2005, 02:44
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A requirement of traditional pension plans is that an employee work for a company a number of years before gaining full rights to benefits from the companyâ€™s plan on retirement. Companies used this requirement to help them retain employees, but recent regulations have substantially reduced the number of years of work a company can require. Nevertheless, companies have not experienced any significant loss of employees.

Which of the following, if true, helps to explain why companies are not experiencing problems in retaining employees?

(A) As the number of years an employee has worked for a company increases, the rate at which the company contributes to the employeeâ€™s pension benefits increases.
(B) Potential employees prefer to work for companies that offer them pension plans rather than for those that do not.
(C) Most companies that do not offer traditional pension plans offer plans in which their employees enjoy rights to retirement benefits as soon as they enter employment.
(D) An employee is more willing to leave an employer after gaining full rights to pension benefits than before gaining such rights.
(E) Employers have always been reluctant to lose highly trained employees.
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Re: CR Pension [#permalink]

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02 May 2005, 03:12
A. Fairly straightforward.

B is irrelevant. C looks irrelevant. D is opposite. E is irrelevant.
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03 May 2005, 09:02
A makes the most sense and both parties benefit.
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Re: A requirement of traditional pension plans is that an [#permalink]

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24 Jul 2016, 01:56
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: A requirement of traditional pension plans is that an   [#permalink] 24 Jul 2016, 01:56
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# A requirement of traditional pension plans is that an

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