Question

Your employer uses a flat benefit formula to determine retirement payments to its employees. The fund...

Your employer uses a flat benefit formula to determine retirement payments to its employees. The fund pays an annual benefit of $3,300 per year of service. Calculate your annual benefit payments for 20, 23, and 25 years of service.

Years Worked Annual Benefit

20 $

23

25

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Flat benefits Formula -

Retirement payments = No. of year of service * Benefit rate per year of service

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

cell reference -

Hope this will help, please do comment if you need any further explanation. Your feedback would be appreciated.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Your employer offers a defined-benefit plan with the following formula: 1.20 percent of final salary for...
Your employer offers a defined-benefit plan with the following formula: 1.20 percent of final salary for each of the first 15 years of service, 1.75 percent of final salary for each of the next 15 years of service, and 2.45 percent of salary for each of the next 20 years of service. What is your retirement benefit if you worked 45 years and your ending salary was 125000?
Q.3. Hana Company’s defined-benefit pension plan covers 180 employees. In its negotiations with the employees, Zarle...
Q.3. Hana Company’s defined-benefit pension plan covers 180 employees. In its negotiations with the employees, Zarle Company amends its pension plan on January 1, 2014, and grants SR 94,000 of prior service costs to its employees. The employees are grouped according to expected years of retirement, as shown below. Group Number of Employees Expected Retirement on December 31, I 30 2014 II 50 2015 III 60 2016 IV 40 2017 Total 180 1. Compute per year service years and the...
Hana Company’s defined-benefit pension plan covers 180 employees. In its negotiations with the employees, Zarle Company...
Hana Company’s defined-benefit pension plan covers 180 employees. In its negotiations with the employees, Zarle Company amends its pension plan on January 1, 2014, and grants SR 94,000 of prior service costs to its employees. The employees are grouped according to expected years of retirement, as shown below. Group Number of Employees Expected Retirement on December 31, I 30 2014 II 50 2015 III 60 2016 IV 40 2017 Total 180 1. Compute per year service years and the total...
An employee with 25 years of service at a company is considering retirement at some time...
An employee with 25 years of service at a company is considering retirement at some time in the next 10 years. The employer uses a final pay benefit formula by which the employee receives an annual benefit payment of 2.0 percent of her average salary during her last five years of service times her total years employed. The employee’s average salary over the last 5 years of service is as follows:    Average Salary during last Five Years of Service...
You have a retirement account into which your employer invests $75 at the end of every...
You have a retirement account into which your employer invests $75 at the end of every month, and the account pays an APR of 5.25% compounded monthly. Use the regular deposits formula to determine the balance in the account at the end of four years. Use the regular deposits formula to determine the balance in the account at the end of 20 years.
6. The XYZ corporation pension plan provides a lifetime annual income to its employees upon retirement...
6. The XYZ corporation pension plan provides a lifetime annual income to its employees upon retirement at age 65. The plan provides 3% for each year of service of the employee's salary upon retirement. Moreover, those retiring after 65 have their benefit increased by 1% for each year beyond 65 that they work.   Caitlin retires at age 67 with 16 years of service. If her salary upon retirement is $51,930, what is her annual pension benefit? Round your answer to...
A corporation's pension plan provides a lifetime annual income to its employees upon retirement at age...
A corporation's pension plan provides a lifetime annual income to its employees upon retirement at age 65. The plan provides 3% for each year of service of the employee's salary upon retirement. Those who retire before 65 have their benefit reduced by 1.5% for each year before 65 that they retire. Russ retires at age 60 with 26 years of service. If his salary upon retirement is $85,305, what is his annual pension benefit?
You wish to retire in 20 years. Currently, your pre-retirement fund has RM50,000 in a savings...
You wish to retire in 20 years. Currently, your pre-retirement fund has RM50,000 in a savings account yielding 3.0% annually and RM300,000 quality stocks yielding 11.0% annually. Furthermore, you expect to add RM8,000 to the savings account and RM15,000 to your stock portfolios at the end of each year in the next 20 year. You will keep this fund until the retirement date. 1.Calculate the overall rate of return per year that you must earn on your post-retirement fund if...
Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement benefits equal to:...
Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement benefits equal to: 1.4% × Service years × Final year’s salary Stanley Mills was hired by Clark at the beginning of 2002. Mills is expected to retire at the end of 2046 after 45 years of service. His retirement is expected to span 15 years. At the end of 2021, 20 years after being hired, his salary is $89,000. The company’s actuary projects Mills’s salary to be...
Exercise 20-5 Vaughn Company has five employees participating in its defined benefit pension plan. Expected years...
Exercise 20-5 Vaughn Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2017 are as follows. Employee Future Years of Service Jim 3 Paul 4 Nancy 5 Dave 6 Kathy 6 On January 1, 2017, the company amended its pension plan, increasing its projected benefit obligation by $84,240. Compute the amount of prior service cost amortization for the years 2017 through 2022 using the years-of-service method,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT