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A man is offered the choice of 4 pension plans. He will not contribute to any of these plans as his employer will pay all
A man is offered the choice of 4 pension plans. He will not contribute to any of these plans as his employer will pay all the contributions. 25 Age at entry: Age at retirement: Salary at retirement is known to be: 65 $65,000 per annum Plan 1 1.0% of Final Salary (FS) for first 10 years + 2.0% of FS for rest of working lifetime for each year of service. Plan 2 1.50% FS for first 20 years + 1.75% FS for next 15 years + 2.00 FS for rest of working lifetime for each year of service. Plan 3 2.0% of FS for the first 30 years plus 1.6% of FS for the rest of his working lifetime for each year of service. Plan 4 $100 per month for each year of service. By performing the requisite calculations, say which one he should choose
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