Joan Recently Started Her Career with PDEK Accounting, LLP Which

question 85

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 5½ years at PDEK before leaving for another opportunity. She received an annual salary of $49,000, $52,000, $58,000, $65,000, and $75,000 for years one through five respectively. Joan earned $40,000 of her $80,000 annual salary in year six. What is the vested benefit Joan is entitled to receive from PDEK for her retirement? Use Exhibit 13-1

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Definitions:

Allocaregiving

The provision of care and nurturing to offspring by individuals other than the biological parents, often seen in social species.

Supplemental Caregiving

Additional care provided to a child by someone other than the primary caregiver, often to support the family or developmental needs.

Nuclear Families

A family unit consisting of two parents and their children living together as a single household, considered a traditional family structure.

Family Structure

The composition and organization of a family unit, including the number of members, their relationships, and roles within the household.