Sonu, age 57, works as a senior mechanical engineer for a construction company. He earns $85,000 a year and has worked continuously for the company for 25 years. He participates in the employer’s group benefits and pension plan. What type of defined benefit pension plan would result in the lowest pension amount if Sonu’s earnings were to decline in the last five years of his employment?
a.
Career average plan.
b.
Combination benefit plan.
c.
Best average plan.
d.
Final average plan.