Joan Recently Started Her Career with PDEK Accounting,LLP,which Provides a Defined

question 80

Essay

Joan recently started her career with PDEK Accounting,LLP,which provides a defined benefit plan for all employees.Employees receive 1.5 percent of the average of their three highest annual salaries for each full year of service.Plan benefits vest under a five-year cliff schedule.Joan worked four and a half years at PDEK before leaving for another opportunity.She received an annual salary of $49,000,$52,000,$58,000,and $65,000 for years one through four,respectively.Joan earned $35,000 of her $70,000 annual salary in year five.What is the vested benefit Joan is entitled to receive from PDEK for her retirement?

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Definitions:

Federal Laws

Legislation enacted by the national government that applies to the nation as a whole.

State Laws

Regulations and legal standards established by individual states within a federal system, which govern within their territories and may vary significantly from one state to another.

Unitary System

A form of government where all the powers are held by a single central authority, often in contrast to federal systems.

Ultimate Government Authority

The highest level of power or decision-making within a governmental structure, which oversees and guides the functioning of all other levels.