Question
Dixie Company's defined benefit pension plan utilizes a funding formula that considers years of service and average compensation over employees' last five years of service
Dixie Company's defined benefit pension plan utilizes a funding formula that considers years of service and average compensation over employees' last five years of service to determine the pension benefit payable to the plan participants. Alicia is a participant in Dixie's defined benefit pension plan and has 30 years of service with the company. Her career average salary over the last 30 years is $82,000. However, her compensation was $325,000 in the last six years with Dixie. What is the maximum pension benefit that could be payable to Alicia at her retirement?
Select one:
a.$56,000.
b.$82,000.
c.$225,000.
d.$325,000
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