Why do pension funds have vesting periods

Assignment Help Financial Management

Reference no: EM131304568

1. Why do pension funds have vesting periods? Do vesting periods have any advantages to employees relative to a system where new hires are eligible to participate in a pension plan right away?

2. Suppose that insurance companies in Ohio are reluctant to offer fire insurance to firms in lowincome neighborhoods because of the prevalence of arson fires in those neighborhoods. Suppose that the Ohio state legislature passes a law stating that insurance companies must offer fire insurance to every business in the state and may not take into account the prevalence of arson fires when setting insurance premiums. What will be the likely effect on the market for fire insurance in Ohio?

Reference no: EM131304568

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