Betty has been a member of her employer's defined benefit pension plan for the past eight years. The plan is non-contributory and Betty has accrued an annual benefit of $7,200 that begins when she is age 65. With regard to creditor access to Betty's accrued pension benefit, which of the following statements is true?

Question 1 options:

	Betty's accrued pension benefit is not accessible to her creditors
	Betty's creditors can access any cash contributions that her employer has made into the pension plan on her behalf
	Betty's creditors can access half of her accrued pension benefit
	The net present value of the $7,200 accrued pension benefit is accessible to Betty's creditors

Question 3 (1 point)

Jim had a heart attack recently, and due to his health scare he has decided to retire in a few months when he reaches age 65. Jims employer has presented with him with a number of options on how he may elect to receive his pension income. Jim has no children, and his main concern is to provide income for his wife for her lifetime. Based on Jims objective, what is the best option for him?

Question 3 options:

	Joint and survivor pension
	Joint and survivor pension with guarantee period
	Life income with guarantee period
	Life income pension

Question 4 (1 point)

At the end of the year, Carly is retiring after 15 years of participation in her employer's defined benefit pension plan. The pension plan provides a benefit based on 1.5% of her best earnings over 3 consecutive years. Carly's earnings during the past 7 years are the highest throughout her career. Given the following earnings history, calculate Carly's annual pension.

2012 = $45,000 2013 = $47,000 2014 = $50,000 2015 = $51,000 2016 = $49,000 2017 = $50,000 2018 = $52,000

Question 4 options:

	$11,250
	$11,325
	$11,363
	$11,700

Question 5 (1 point)

Ralph has been a member of his employer's defined contribution pension plan for the past 22 years and is considering the possibility of retiring when he reaches age 60, at the end of this month. If Ralph has accumulated $157,890 in pension assets, what total pension benefit will these funds purchase if the pension begins immediately and is paid at the beginning of each month throughout Ralph's lifetime? Assume the pension is based on a single life annuity with a 27-year life expectancy and a 5.1% annual nominal return, compounded monthly.

Question 5 options:

	$996.98
	$898.39
	$894.59
	$991.98

Question 6 (1 point)

Jack participates in his employer's pension plan, which utilizes a career average formula to derive the pension benefit. Jack knows that the sum of his pensionable earnings is $1,025,000 and that he accrues an annual benefit of 1.85%. Jack's annual pensionable earnings in the most recent three years are $50,000, $55,000 and $60,000. If Jack has 22 years of service, what is Jack's accrued annual pension benefit?

Question 6 options:

	$18,500
	$22,385
	$18,910
	$18,963