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 five-year cliff schedule. Joan worked five and a half years at PDEK before leaving for another opportunity. She received an annual salary of $49,700, $52,350, $58,175, $65,350, and $75,525 for years one through five, respectively. Joan earned $40,350 of her $80,700 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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Joan recently started her career with PDEK Accounting, LLP, which provides a defined benefit plan fo...
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