Question

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

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.*

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I
30
2014
II
50
2015
III
60
2016
IV
40
2017
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Hana Company’s defined-benefit pension plan covers 180
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amends its pension plan on January 1, 2014, and grants SR 94,000 of
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Group
Number of Employees
Expected Retirement on December 31,
I
30
2014
II
50
2015
III
60
2016
IV
40
2017
Total
180
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4
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5
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