Dean has earned $70,000 annually for the past 4½ years working as an architect for MWC. Under MWC's defined benefit plan (which uses a 5-year cliff vesting schedule) employees earn a benefit equal to 3.5% of the average of their three highest annual salaries for every full year of service with MWC. What is Dean's vested benefit (orannual benefit he has earned so far)?
A) $12,250.
B) $0.
C) $42,000.
D) $7,350.

Question

Quizplus · Accepted Answer

Dean has not yet completed the 5-year vesting period, so his vested benefit is $0.

Dean Has Earned $70,000 Annually for the Past 4½ Years