As a member of the company's defined benefit plan,employees receive a pension based on one percent of the average of their best three years' earnings for each year of service.What will be your annual pension if you retire after 30 years of service and have averaged $50,000 per year during your three best years?

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Quizplus · Accepted Answer

The annual pension is calculated as 1% of the average of the best three years' earnings ($50,000) for each year of service (30 years), which equals $50,000 * 0.01 * 30 = $15,000.

As a Member of the Company's Defined Benefit Plan,employees Receive