Question

URGENT Alicia has been working for JMM Corp. for 33 years. Alicia participates in JMM’s defined...

URGENT

Alicia has been working for JMM Corp. for 33 years. Alicia participates in JMM’s defined benefit plan. Under the plan, for every year of service for JMM, she is to receive 2 percent of the average salary of her three highest consecutive calendar years of compensation from JMM. She retired on January 1, 2020. Before retirement, her annual salary was $609,000, $639,000, and $669,000 for 2017, 2018, and 2019. What is the maximum benefit Alicia can receive in 2020?

Homework Answers

Answer #1

Alicia is entitled to receive 66% (33 years × 2% per year) of her average salary for her three highest years of compensation.

The average of Alicia’s three highest years of compensation is:

=(609,000+639,000+669,000)/3

=639,000,

so she is entitled to receive =639000*66% =421,740 before considering the limitation

But, In general, the annual benefit for a participant under a defined benefit plan cannot exceed the lesser of:

100% of the participant's average compensation for his or her highest 3 consecutive calendar years, or $220,000 for 2018 .

Lesser of 421740 and 220000 is $220,000, hence it is the maximum benefit.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Alicia has been working for JMM Corp. for 32 years. Alicia participates in JMM’s defined benefit...
Alicia has been working for JMM Corp. for 32 years. Alicia participates in JMM’s defined benefit plan. Under the plan, for every year of service for JMM, she is to receive 2 percent of the average salary of her three highest consecutive calendar years of compensation from JMM. She retired on January 1, 2020. Before retirement, her annual salary was $570,000, $600,000, and $630,000 for 2017, 2018, and 2019. What is the maximum benefit Alicia can receive in 2020?
Alicia has been working for JMM Corp. for 32 years. Alicia participates in JMM’s defined benefit...
Alicia has been working for JMM Corp. for 32 years. Alicia participates in JMM’s defined benefit plan. Under the plan, for every year of service for JMM she is to receive 2 percent of the average salary of her three highest years of compensation from JMM. She retired on January 1, 2018. Before retirement, her annual salary was $585,000, $615,000, and $645,000 for 2015, 2016, and 2017. What is the maximum benefit Alicia can receive in 2018? Maximum benefit in...
Alicia has been working for JMM Corp. for 32 years. Alicia participates in JMM’s defined benefit...
Alicia has been working for JMM Corp. for 32 years. Alicia participates in JMM’s defined benefit plan. Under the plan, for every year of service for JMM she is to receive 2 percent of the average salary of her three highest years of compensation from JMM. She retired on January 1, 2015. Before retirement, her annual salary was $586,000, $607,000, and $664,000 for 2012, 2013, and 2014. What is the maximum benefit Alicia can receive in 2015?
Alicia has been working for JMM Corp. for 32 years. Alicia participates in JMM’s defined benefit...
Alicia has been working for JMM Corp. for 32 years. Alicia participates in JMM’s defined benefit plan. Under the plan, for every year of service for JMM she is to receive 2 percent of the average salary of her three highest years of compensation from JMM. She retired on January 1, 2017. Before retirement, her annual salary was $570,000, $600,000, and $630,000 for 2014, 2015, and 2016. What is the maximum benefit Alicia can receive in 2017?
Chapter 13 1) Alicia has been working for JMM Corp. for 32 years. Alicia participates in...
Chapter 13 1) Alicia has been working for JMM Corp. for 32 years. Alicia participates in JMM"s defined benefit plan. Under the plan. for every year of service for JMM she is to receive 2 percent of the average salary of her three highest years of compensation from JMM. She retired on January 1, 2018. Before retirement, her annual salary was $630,000. $660,000, and $690,000 for 2015,2016, and 2017. What is the maximum benefit Alicia can receive in 2018? 2)...
Javier recently graduated and started his career with DNL Inc. DNL provides a defined benefit plan...
Javier recently graduated and started his career with DNL Inc. DNL provides a defined benefit plan to all employees. According to the terms of the plan, for each full year of service working for the employer, employees receive a benefit of 1.5 percent of their average salary over their highest three years of compensation from the company. Employees may accrue only 30 years of benefit under the plan (45 percent). Determine Javier’s annual benefit on retirement, before taxes, under each...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...