Question
Which of the following is NOT a characteristic of a Deferred Profit Sharing Plan (DPSP)? a) Guaranteed benefit amount. b) Employer contributions are dependent upon
Which of the following is NOT a characteristic of a Deferred Profit Sharing Plan (DPSP)?
a) Guaranteed benefit amount.
b) Employer contributions are dependent upon profitability achieved.
c) Taxable benefit when withdrawn.
d) Incentive for employees to work harder.
Eric has just received a job offer from a different employer,and is trying to decide if it is worth leaving his current one. He estimates that his best five years' pensionable salary will average out to be $68,785 if he works until age 65, which is 20 years from now. If the defined benefitpension plan (DBPP)provides a 1.4% unit percentage, what amount would his estimated annual pension benefit be at retirement?
Enter your answer rounded to 2 decimal places, and do NOT enter any symbols such as $, % or commas.
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