Problem 13-53 (LO 13-1) (Static) Haley has an annual salary of $1,000,000 in 2021, 2022, and 2023. She is thinking about retiring at the beginning of 2024 after working for XYZ Corporation and participating in XYZ Corporation's defined benefit plan. If XYZ Corporation's defined benefit plan pays employees 3 percent for every year of service for the average of their three highest years of compensation, what is the minimum number of years of service that would maximize Haley's benefit if she were to retire at the beginning of 2024? Assuming she worked the minimum number of years to receive the maximum benefit, what would her annual defined benefit plan payment be in 2024? Note: Round your final answers to the nearest whole dollar amount. Minimum number of years of service 30 years Payment under annual defined benefit plan
Problem 13-53 (LO 13-1) (Static) Haley has an annual salary of $1,000,000 in 2021, 2022, and 2023. She is thinking about retiring at the beginning of 2024 after working for XYZ Corporation and participating in XYZ Corporation's defined benefit plan. If XYZ Corporation's defined benefit plan pays employees 3 percent for every year of service for the average of their three highest years of compensation, what is the minimum number of years of service that would maximize Haley's benefit if she were to retire at the beginning of 2024? Assuming she worked the minimum number of years to receive the maximum benefit, what would her annual defined benefit plan payment be in 2024? Note: Round your final answers to the nearest whole dollar amount. Minimum number of years of service 30 years Payment under annual defined benefit plan
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 16CE
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Transcribed Image Text:Problem 13-53 (LO 13-1) (Static)
Haley has an annual salary of $1,000,000 in 2021, 2022, and 2023. She is thinking about retiring at
the beginning of 2024 after working for XYZ Corporation and participating in XYZ Corporation's
defined benefit plan. If XYZ Corporation's defined benefit plan pays employees 3 percent for every
year of service for the average of their three highest years of compensation, what is the minimum
number of years of service that would maximize Haley's benefit if she were to retire at the beginning
of 2024? Assuming she worked the minimum number of years to receive the maximum benefit, what
would her annual defined benefit plan payment be in 2024?
Note: Round your final answers to the nearest whole dollar amount.
Minimum number of years of service
30 years
Payment under annual defined benefit plan
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