Determine the gross annual benefit payment earned

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Michael (age 35) commenced employment at Larkln Supplies Inc. on January 1, 2020. Larkin sponsors a defined bene?t plan where employees vest 5% after year one, an additional 10% after year two, and an additional 15% each year after until 100%. Michael's current salary is $90,000 per year, and he is expected to retire in 20 years, at which time his salary is estimated to be $175,000 per year. The annual benefit formula is equal to 2.5% x number of years of service x ?nal salary.

Problem 1: Determine the gross annual benefit payment earned as of December 31, 2021, under a (1) V30, {2) ABC), and (3] PRO pension liability measurement.

Reference no: EM132711034

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