Second, I reviewed America's pension system. Less than half of American workers have a pension at all. Fifty-one percent of American workers have no pension. There is an inherent problem in the current pension system. Most small businesses have none.
Most large corporations have five-year vesting.
But the current workforce pattern assumes that individuals will have 6 to 8, or even 10, employers in their lives. They can easily work a 45 year-period and never vest. The second plan to implement Kelso's concepts was to redesign the pension system. Under this plan, teachers have an automatic pension built into their employment contracts. Automatically a percent of wage goes into the pension.