years of service and retirement. Benefit plan that awards 2% of an employee's final salary Example: Firm X has a Defined Benefit for every year of service. Joe's salary in YR11 is $4. As of 1/1/YR11, Joe has worked Joe is expected to work for a Discount rate for the plan is 10%. Calculate the Service Cost (relati $45,000 and is expected to increase 5% every year. has worked at Firm X for 10 years (YR11 is his 11 year) for another 25 years and to live 10 years after retirement. Service Cost (relating to Joe) for YRIT