Rita went to work for a manufacturing company. The company offers a de

Rita went to work for a manufacturing company. The company offers a defined-benefit pension plan.

The retirement benefit is equal to 1.5 percent multiplied by years of service with the company, and the result is multiplied by average salary in the three highest consecutive years of paid employment with the company. The benefit formula used at Rita’s company is a
A) flat dollar amount for all employees.
B) flat percentage of annual earnings.
C) flat dollar amount for each year of service.
D) unit-benefit formula.

ANSWER

Answer: D