Assume that Jaciel has been working for the same fi rm for 25 years. Over the last 5 years, her salary has increased by $1,000 each year from $41,000 to $45,000. The average salary of her fi nal 5 years with the company is $42,000. Which of the following defi ned- benefi t plans will Jaciel prefer?

Why?

a. Plan A: 2.5 percent of fi nal salary times years of ser vice

b. Plan B: 68 percent of her highest 5- year average earnings

c. Plan C: $90 per month times the number of years worked