1. The retirement benefit plan (a defined benefit plan) provides for a lump sum benefits payable on termination of service which is equal to 1% of the final-year salary for each year of service. An employee commences work on 1/1/20X1 and is expected to be retired on 1/1/20x6. Her final-year salary is expected to be RM100,000. The discount rate is 10% per annum.

Required:

Calculate the retirement benefit costs/ obligation