A national labor union representing pipeline construction workers has a defined-benefit pension plan for its members. Ron, age 65, is a heavy equipment operator who wants to retire. He has been a member of the union for 30 years. The pension plan has a unit-benefit formula, which provides a retirement benefit equal to 1.5 percent of the worker's final average compensation for each year of credited service. Final average compensation is based on the worker's three highest consecutive years of earnings prior to retirement. Ron's final average compensation is $70,000. How much will Ron receive each month when he retires?
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