A typical defined benefit pension plan formula includes all of the following except:
A) the number of years of employee service
B) the fair market value of pension plan assets
C) a credit for each year of annual service
D) the final salary at retirement date

Question

Quizplus · Accepted Answer

While the fair market value of pension plan assets is important in determining the overall health of the plan, it is not typically included in the formula for determining individual employee benefits. The other factors (years of service, credit for annual service, and final salary) are commonly included in defined benefit pension plan formulas.

A Typical Defined Benefit Pension Plan Formula Includes All of the Following