Question
Clark Industries has a defined benefit pension plan that specifies annual retirement benefits equal to: 1.5% Service years Final years salary Stanley Mills was hired
Clark Industries has a defined benefit pension plan that specifies annual retirement benefits equal to: |
1.5% Service years Final years salary |
Stanley Mills was hired by Clark at the beginning of 1997. Mills is expected to retire at the end of 2041 after 45 years of service. His retirement is expected to span 15 years. At the end of 2016, 20 years after being hired, his salary is $90,000. The companys actuary projects Millss salary to be $370,000 at retirement. The actuarys discount rate is 6%.
Required:
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