EXHIBIT 13-1 Defined Benefit Plans Minimum Vesting Schedules* 5-Year Cliff 7-Year Graded Full Years of Service 1 0% 0% 2 0 0 3 0 20 4 0 40 5 100 60 6 N/A 80 7 N/A 100 CAM, Inc provides a defined benefit plan to its employees. Under the plan, employees earn a benefit equal to 1.2 percent for every year of service of their average salary for their three highest years of compensation. CAM implements a seven-year graded vesting schedule as part of the plan. If Hadley works for CAM for four years, earning annual salaries of $42,490, $46,220, $51,880, and $56,260, and then leaves to work for another employer at the beginning of her 5th year, what annual benefit would she be entitled to receive (her vested benefit)? swered 465,990 Answer 988 margin of error +/- 2
EXHIBIT 13-1 Defined Benefit Plans Minimum Vesting Schedules* 5-Year Cliff 7-Year Graded Full Years of Service 1 0% 0% 2 0 0 3 0 20 4 0 40 5 100 60 6 N/A 80 7 N/A 100 CAM, Inc provides a defined benefit plan to its employees. Under the plan, employees earn a benefit equal to 1.2 percent for every year of service of their average salary for their three highest years of compensation. CAM implements a seven-year graded vesting schedule as part of the plan. If Hadley works for CAM for four years, earning annual salaries of $42,490, $46,220, $51,880, and $56,260, and then leaves to work for another employer at the beginning of her 5th year, what annual benefit would she be entitled to receive (her vested benefit)? swered 465,990 Answer 988 margin of error +/- 2
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:EXHIBIT 13-1 Defined Benefit Plans Minimum Vesting Schedules*
5-Year Cliff 7-Year Graded
Full Years of Service
1
0%
0%
2
0
0
3
0
20
4
0
40
5
100
60
6
N/A
80
7
N/A
100
CAM, Inc provides a defined benefit plan to its employees. Under the plan, employees earn a
benefit equal to 1.2 percent for every year of service of their average salary for their three
highest years of compensation. CAM implements a seven-year graded vesting schedule as
part of the plan. If Hadley works for CAM for four years, earning annual salaries of $42,490,
$46,220, $51,880, and $56,260, and then leaves to work for another employer at the
beginning of her 5th year, what annual benefit would she be entitled to receive (her vested
benefit)?
swered
465,990
Answer
988 margin of error +/- 2
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