What annual pension benefit will receive

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Problem 1: Justin belongs to an integrated defined-benefit pension plan. It provides a benefit of 1.3% of final average earnings up to the year's maximum pensionable earnings (YMPE) in the final year and 2% on final average earnings above the YMPE in the final year for each year of service. If Justin has projected his final average earnings to be $85,000 and the YMPE in the final year to be $55,300, what annual pension benefit will he receive when he retires after 20 years of service?

a) $22,100
b) $26,258
c) $28,120
d) $34,000

Reference no: EM132768796

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