Help

Save & Exit

Teak Company is considering the establishment of a pension plan. The proposed plan has the following features:

Contributions for employees earning less than $$112,500$ will be based on $2\mathrm{.}60\%$ of salary, while contributions for those earning over $$112,500$ will be based on $4\mathrm{.}75\%$ of salary.

To reduce employee turnover, company contributions will vest in $10$ years.

Employees with more than five years of service will be required to contribute $2\mathrm{.}50\%$ to the pension plan.

Employee contributions will completely vest in one year.

Required:

Will the proposed pension plan be deemed a qualified pension plan?

Yes or No

$$

$$