Brown, Inc., uses the three-to-seven year graded vesting approach for its defined benefit retirement plan. Peter has five years of service completed as of February 5, 2017, his employment anniversary date. Determine Peter's nonforfeitable percentage.

Question

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According to the given information, Peter has completed five years of service. Following the three-to-seven year graded vesting approach, Peter's nonforfeitable percentage would be 60%. This is because he has completed more than three but less than seven years of service, and nonforfeitable percentage increases by 20% for each additional year of service completed after three years. Therefore, Peter's nonforfeitable percentage is 60%.