Question

6. The XYZ corporation pension plan provides a lifetime annual income to its employees upon retirement at age 65. The plan provides 4% for each year of service of the employee's salary upon retirement. Moreover, those retiring after 65 have their benefit increased by 0.5% for each year beyond 65 that they work.  

Caitlin retires at age 71 with 15 years of service. If her salary upon retirement is $65,116, what is her annual pension benefit?

Round your answer to the nearest dollar.

Answer 1

Pgcom Answer: is to calculate the annual ? The benefit main objective for her.... Given date : 7 years till of age * Caitlin worked 65 is * mean age 165) * But the retirement age Caitlin retired after 11 she worked for to years And 5 years before the is years of service which after The retirement retirement age (65). * salary og Pension benefit - so, she will for o years get as ut of her 4.5% = 45% for 10 years ie 4% +0,5% ne (65 years to 7 years) ne → So so, The Pension Benefit for 5years before she turned (65) 5) $65,116 * 4% =$2604.64 Similarly the Pention benefit for 10 years , after she turned (65) 2) $65116 * 4:57 = $2930.22

Pgcom Answer: is to calculate the annual ? The benefit main objective for her.... Given date : 7 years till of age * Caitlin worked 65 is * mean age 165) * But the retirement age Caitlin retired after 11 she worked for to years And 5 years before the is years of service which after The retirement retirement age (65). * salary og Pension benefit - so, she will for o years get as ut of her 4.5% = 45% for 10 years ie 4% +0,5% ne (65 years to 7 years) ne → So so, The Pension Benefit for 5years before she turned (65) 5) $65,116 * 4% =$2604.64 Similarly the Pention benefit for 10 years , after she turned (65) 2) $65116 * 4:57 = $2930.22

Pg-02 so, hence The total annual pension benefit is - $2606.64 + $ 2920.22 -$5534.86 : Tokal annual pension benefit = $ 5535