What is the expected annual contribution to retirement plan

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Reference no: EM13730738

ELO manufacturing is looking to hire a new plant supervisor. They have 2 qualified candidates, Charlie, 43 and Kevin, 36. Both would have a starting salary of $62,000. Each could expect a 3% cost of living raise each year. ELO Inc. also has a defined Benefit Pension plan that pays 35% of final salary as a benefit after 20 years of service, with a 2% increase in pension multiplier for each additional year of service after 20. ELO also has a "mandatory" retirement age of 66 for all plant jobs. What is the expected annual contribution to the retirement plan that each candidate would accrue if investments in the pension fund earned 6%?

Reference no: EM13730738

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