(Topic 9) An employee who became vested in his/her employer's retirement plan upon reaching five years of service decides to resign after working for seven years. However, he/she will not reach…

• (Topic 9)

An employee who became vested in his/her employer's retirement plan upon reaching five years of service decides to resign after working for seven years. However, he/she will not reach retirement age for another six years. Referring to the employee's annual earnings above, if the plan is structured as a cash balance plan, what is the value of the employee's plan if benefits accrued at 8% per year and future annual salary inflation is 3%?