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Ali has been contributing $4,000 per year to his companys DC plan for the 2 years. His employer matched his contributions at 50%. The company
- Ali has been contributing $4,000 per year to his companys DC plan for the 2 years. His
employer matched his contributions at 50%. The company retirement plan has a five-year graded vesting clause (20 percent each year). If Alli were to leave today, how much of the total funds contributed to this plan would he be able to take to the next employer?
- Compare the replacement rate for Terry in the twos scenarios below if she has a Defined Benefit plan, where the retirement benefit = 0.02 x (years of service) x (final salary)
- Stay at Hydro Company for 30 years, final salary = 10,000/month
Benefit =
Replacement rate =
- Work at Hydro Company for 10 years, final salary = 6000/month, and then switch and work for 20 years with Solar Company (final salary = 10,000/month)
Benefit =
Replacement rate =
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