A Typical Defined Benefit Pension Plan Formula Includes All of the Following

question 45

Multiple Choice

A typical defined benefit pension plan formula includes all of the following except:

• A) the number of years of employee service
• B) the fair market value of pension plan assets
• C) a credit for each year of annual service
• D) the final salary at retirement date

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Definitions:

Kilocalories

A unit of energy commonly used to measure the energy content of food, equal to 1,000 calories.

Kinetic Energy

Energy of motion. Compare with potential energy.

Legs

Limbs on animals and humans used primarily for supporting the body and facilitating locomotion or movement.

Motion

The change in position of an object with respect to time and its reference point.