For a long-term employee who is covered by a defined benefit plan,the highest retirement income will be obtained if his/her retirement income is based on

Question

Quizplus · Accepted Answer

Final average pay is the most common method used to calculate retirement income for long-term employees covered by a defined benefit plan. This method takes into account the employee's average salary over a set period of time, usually the employee's highest earning years leading up to retirement. This allows for a more accurate representation of the employee's retirement income based on their highest earning potential.

For a Long-Term Employee Who Is Covered by a Defined