A corporation's pension plan provides a lifetime annual income to its employees upon retirement at age 65. The plan provides 2% for each year of service of the employee's salary upon retirement. Those who retire before 65 have their benefit reduced by 1.4% for each year before 65 that they retire. Russ retires at age 62 with 19 years of service. If his salary upon retirement is $79,497, what is his annual pension benefit?
A corporation's pension plan provides a lifetime annual income to its employees upon retirement at age 65. The plan provides 2% for each year of service of the employee's salary upon retirement. Those who retire before 65 have their benefit reduced by 1.4% for each year before 65 that they retire. Russ retires at age 62 with 19 years of service. If his salary upon retirement is $79,497, what is his annual pension benefit?
Chapter4: Income Exclusions
Section: Chapter Questions
Problem 36P
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A corporation's pension plan provides a lifetime annual income to its employees upon retirement at age 65. The plan provides 2% for each year of service of the employee's salary upon retirement. Those who retire before 65 have their benefit reduced by 1.4% for each year before 65 that they retire.
Russ retires at age 62 with 19 years of service. If his salary upon retirement is $79,497, what is his annual pension benefit?
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT