Dean has earned $73,250 annually for the past six years working as an architect for WCC Incorporated Under WCC's defined benefit plan (which uses a seven-year graded vesting schedule)employees earn a benefit equal to 4.0 percent of the average of their three highest annual salaries for every full year of service with WCC. Dean has worked for six full years for WCC and his vesting percentage is 80 percent. What is Dean's vested benefit (or annual retirement benefit he has earned so far)?
A)$17,580.
B)$58,600.
C)$14,064.
D)$0.

Question

Quizplus · Accepted Answer

Dean's average salary for the three highest years is $73,250. The benefit is 4% of this average for each year of service: $73,250 * 4% * 6 years = $17,580. Dean's vested benefit is 80% of this amount: $17,580 * 80% = $14,064.

Dean Has Earned $73,250 Annually for the Past Six Years