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14. "Plan fiduciary net position as a percentage of total pension liability" should be no less than 60% (an amount of 60% or more is deemed "safe"). 15. Joe works for the city of Newport. He contributes to a retirement fund so that he will have a pension when he retires. His annual pension amount will be equal to 2% of the average of his last three years of salary for every year Joe works. For instance, if Joe works for the city for 40 years and his average salary over the last three years that he works is $80,000, Joe's annual pension will be $64,000. This type of pension plan is known as a "defined benefit" plan. 14. "Plan fiduciary net position as a percentage of total pension liability" should be no less than 60% (an amount of 60% or more is deemed "safe"). 15. Joe works for the city of Newport. He contributes to a retirement fund so that he will have a pension when he retires. His annual pension amount will be equal to 2% of the average of his last three years of salary for every year Joe works. For instance, if Joe works for the city for 40 years and his average salary over the last three years that he works is $80,000, Joe's annual pension will be $64,000. This type of pension plan is known as a "defined benefit" plan

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