Under a Defined Benefit Plan,the Annual Benefit Payable to an Employee

question 54

True/False

Under a defined benefit plan,the annual benefit payable to an employee is limited to the smaller of $210,000 (in 2016)or 100% of the employee's average compensation for the highest 3 years of employment.

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Definitions:

Credit Unions

Member-owned financial cooperatives that provide traditional banking services and typically offer higher interest rates on savings and lower rates on loans.

Premium

The amount paid for an insurance policy or the extra cost above the normal price of a product or service, often associated with higher quality or benefits.