Joan Recently Started Her Career with PDEK Accounting LLP, Which

Essay

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 $49,600, $52,300, $58,150, $65,300, and $75,450 for years one through five, respectively. Joan earned $40,300 of her $80,600 annual salary in year six. What is the vested benefit Joan is entitled to receive from PDEK for her retirement? (Use Exhibit 13-1 ).