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  3. 33 brian's employer offers a defined contribution

33 Brian's employer offers a defined contribution pension plan with matching contributions set at 5%...

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Accounting

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33 Brian's employer offers a defined contribution pension plan with matching contributions set at 5% of his salary. All employees are eligible to join after one year of service. Brian joined the plan at the beginning of his second year of service. Brian earns $38,000 per year and has not received a raise since he first joined the company. Now that Brian is a member of the pension plan, he wants to make arrangements to purchase pension credits for his first year of service. How much will it cost Brian to purchase pension credits for his first year of service: a) $1,000 b) $1,900 c) $3,800 d) Brian is not permitted to purchase past service pension credits

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