Dean has earned $71,250 annually for the past seven years working as an architec

Question

Dean has earned $71,250 annually for the past seven years working as an architect for MWC Inc. Under MWC's defined benefit plan (which uses a 7-year graded vesting schedule) employees earn a benefit equal to 4.5% of the average of their three highest annual salaries for every full year of service with MWC. Dean has worked for seven full years for MWC and his vesting percentage is 62%. What is Dean's vested benefit (or annual retirement benefit he has earned so far)?

$22,444.

$44,175.

$13,915.

$0.

Explanation / Answer

The corrcect option is option - C.

That is $71,250( annually earned prior three years) x 3.1.5%(4.5%x7) x 62% (versting percentage) = $13,915.

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