Question: Kumar has been working for Dreamline Enterprises for 12 years. He has been a member of the company's defined benefit pension plan for the
Kumar has been working for Dreamline Enterprises for 12 years. He has been a member of the company's defined benefit pension plan for the past ten years. Kumar plans to retire as of January 1st of next year and he has been told that at that time, he will be eligible for an annual retirement pension of $15,852. If the RPP has a 2% unit, to what type of defined benefit pension plan does Kumar belong? (Kumar's annual income for the past 10 years are listed in the table) # of Years Prior to Retirement Pensionable Earnings 9 years ago 8 years ago 7 years ago 6 years ago 5 years ago 4 years ago 3 years ago 2 years ago last year this year $69,570 $71,250 $73,000 $75,100 $77,750 $80,400 $82,650 $84,325 $79,875 $69,050
Step by Step Solution
3.56 Rating (156 Votes )
There are 3 Steps involved in it
1 Calculate Kumars average annual pensionable earnings for the past 10 year... View full answer
Get step-by-step solutions from verified subject matter experts
