Question: Stan has worked at GM for 20 years and plans to retire at the end of this year. He participates in a Defined Benefit Pension

Stan has worked at GM for 20 years and plans to retire at the end of this year. He participates in a Defined Benefit Pension at GM. The GM pension formula awards 1 unit for each year worked. A unit earns an employee 1.5% of their final average salary. GM calculates the final average salary as the average salary earned in the final 4 years of work. Stan earned $47,300, $49,000, $50,500, and $52,600 respectively in the final four years working there. What will his annual Defined Benefit Pension be at retirement?

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