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

Question

Quizplus · Accepted Answer

Dean has not met the five-year cliff vesting schedule required by MWC's defined benefit plan, so he is not yet entitled to any vested benefits.

Dean Has Earned $70,000 Annually for the Past Four and a Half