Leonard retires and chooses to receive his pension under the optional form, which is offered by the plan.
The accrued target pension under the normal form is $2000 and, based on the optional form, $1900. From his accrued adjusted pension of $1800, he may obtain a pension amount of $1710, that is, the accrued adjusted pension under the optional form.
As of when Leonard retires, the administrator must keep the information indicated on the last line of the following table, which concerns the accrued target pension
under the optional form, as well as the accrued adjustment pension
under the optional form, which corresponds to the amount of the pension paid.
|Information to keep – Leonard|
|Amount based on the normal form||$2000||$1800|
|Amount based on the chosen optional form||$1900||$1710|