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NEW QUESTION: 1
What two elements does the formula in a defined benefit plan examine to determine the pension an employer may provide the employee?
A. Hourly rate and length of service
B. Salary and income contribution
C. Salary and overall performance
D. Salary and length of service
Answer option B is correct.
Only the salary and the length of service are considered when it comes to completing the formula in a defined benefit plan for a pension.
Answer option D is incorrect. This isn't a valid answer, as overall performance isn't a consideration.
Answer option A is incorrect. The hourly rate isn't a factor - it's the salary.
Answer option C is incorrect. Income contribution isn't a factor. The two factors are salary and the length of service.
Reference: Professional in Human Resources Certification Study Guide, Sybex, ISBN: 978-0-470-43096-5.
Chapter Six: Total Rewards. Official PHR and SPHR Certification Guide, HR Certification Institute, ISBN:
978-1-586-44149-4, Section III, The US Body of Knowledge.
Chapter: Compensation and Benefits
Objective: Total Rewards Defined
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