Joan Recently Started Her Career with PDEK Accounting, LLP Which

question 102

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 5-year cliff schedule. Joan worked 4½ 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:

Promisor

A party who makes a promise or commitment in a contract.

Past Consideration

Refers to something of value that was given or an act that was performed in the past, which cannot be considered valid consideration for a current contract.

Binding Contract

A binding contract is an agreement between two or more parties that is enforceable by law, signaling that all parties have accepted the terms whether written or oral.

Employment Setting

Refers to the place or context in which employment occurs, including physical locations, organizational environments, and remote or virtual workplaces.