You Are a Member of a Defined-Benefit Plan That Pays

question 68

Multiple Choice

You are a member of a defined-benefit plan that pays a two percent benefit for each year of service based on your best five year's earnings.If you qualify for an unreduced pension and have worked for the company for 30 years,your pension will be approximately

• A)The answer is unknown because the benefit must be calculated by an actuary.
• B)60 percent of the average of your best five years' earnings.
• C)50 percent of the average of your best five years' earnings.
• D)60 percent of the average of your last five years' earnings.

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Definitions:

Strike

The organized withdrawal of labor from a firm by a union.

Minimum-wage Laws

Legislation that sets the lowest hourly wage rate that an employer can legally pay its workers, aiming to ensure a minimum standard of living.

Workers

Individuals engaged in a physical or mental activity aimed at producing goods or providing services in exchange for wages.

Right-to-work Laws

Legislation that prohibits compulsory union membership as a condition of employment, allowing individuals to work without being forced to join a union.