3. Advantages of a final pay defined benefit plan include which of the following?

1. The employees initial benefit keeps pace with any pre-retirement inflation trends.
2. A final pay plan generally produces more favorable results for key employees than the career average approach.
3. This type of plan is usually less expensive that one which bases benefits on career average earnings.

1. I only.
2. I and II only.
3. I and III only.
4. II and III only.
5. I, II and III.