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Standard Appliance Co. has an employee pension plan under which Aurelia has worked for 31 years.
Aurelia is laid off at age 60, and five years later, she retires and attempts to draw her pension
benefits. However, Aurelia is informed that she is not eligible for pension benefits because she had
not been working under the Standard Appliance Co. plan at the time of her retirement. Is this
correct?
Yes, if that is what the Standard Appliance Co. plan specifies.
No, since Aurelia worked longer than 10 years for Standard Appliance Co.
No, since Aurelia's benefits are vested.
Yes, since Standard Appliance Co, only has a responsibility to current employees.
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Transcribed Image Text:Standard Appliance Co. has an employee pension plan under which Aurelia has worked for 31 years. Aurelia is laid off at age 60, and five years later, she retires and attempts to draw her pension benefits. However, Aurelia is informed that she is not eligible for pension benefits because she had not been working under the Standard Appliance Co. plan at the time of her retirement. Is this correct? Yes, if that is what the Standard Appliance Co. plan specifies. No, since Aurelia worked longer than 10 years for Standard Appliance Co. No, since Aurelia's benefits are vested. Yes, since Standard Appliance Co, only has a responsibility to current employees.
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