What Level of Pension Would an Employee Receive If He/she

question 3

Multiple Choice

What level of pension would an employee receive if he/she was a member of a sixtieth final salary pension scheme, had forty years' pensionable service and was earning £30,000 a year at the date of retirement?

• A) £15,000 per year
• B) £20,000 per year
• C) £25,000 per year
• D) £30,000 per year

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Definitions:

Dividends In Arrears

Unpaid dividend amounts on cumulative preference shares that must be paid out before any dividends can be distributed to common shareholders.

Paid Preferred Dividends

Dividends distributed to preferred stockholders, typically on a fixed schedule, before any dividends are given to common stockholders.

Declared Preferred Dividends

Dividends announced by a company's board of directors to be paid on preferred shares.

Preemptive Right

A shareholder's right to maintain their proportional ownership in a company by buying a proportionate share of any new stock issues.