Henry Has Been Working for Cars Corp

Essay

Henry has been working for Cars Corp.for 40 years and four months.Cars Corp.provides a defined benefit plan for its employees.Under the plan,employees receive 2 percent of the average of their three highest annual salaries for each full year of service.Cars Corp.uses a five-year cliff vesting schedule.Henry retired on January 1,2019.Henry received annual salaries of $520,000,$540,000,and $560,000 for 2016,2017,and 2018,respectively.What is the maximum benefit Henry can receive under the plan in 2019?