Which of the Following Statements About Retirement Benefits Under Pension

question 15

Multiple Choice

Which of the following statements about retirement benefits under pension plans is true?

• A)Under a flat percentage of annual earnings defined benefit formula,each employee receives the same dollar benefit.
• B)A benefit using final pay is usually based on an employee's earnings during the last month of plan participation.
• C)A unit-benefit formula considers both earnings and years of service.
• D)Past service benefits are the result of bonuses and overtime pay during the period an employee participated in the plan.

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Definitions:

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