Question

Richmond products, inc. sponsors a postretirement plan providing health care benefits to employees who have completed at least 10 years service and are age 53 years or older at retirement. to date, the employees that have retired under the plan have an average age of 60. no employee has worked beyond age 65. crystal alicea was hired when she was 46 years old. the attribution period for accruing richmond's expected postretirement health care benefit obligation to alicea is during the period when alicea is:

a) 53 to 60 years old
b) 53 to 65 years old
c) 46 to 56 years old
d) 46 to 65 years old

Answer 1

The attribution period for Crystal Alicea's expected postretirement health care benefits from Richmond Products, Inc. is from age 53, when she becomes eligible for retirement, to age 65, which is the age beyond which no employee works at the company. Therefore, the correct answer is option (b) 53 to 65 years old.

Step-by-step explanation:

The student has asked about the attribution period for the expected postretirement health care benefit obligation for an employee named Crystal Alicea who works at Richmond Products, Inc. The company's retirement plan stipulates that health care benefits are provided to employees who have completed at least 10 years of service and are 53 years or older at retirement. Additionally, it is known that no employee has worked beyond age 65 at Richmond Products, Inc.

Understanding that Crystal Alicea was hired at the age of 46 and the information provided about the company's retirement eligibility, the attribution period is the time span over which an employee accrues benefits for postretirement health care obligations. Therefore, since Crystal must be at least 53 to retire and cannot work beyond 65 years old, the accreditation period for her would logically be from the time she is eligible for retirement benefits until the age at which she must stop working, which is 53 to 65 years old.

Thus, the correct option answer for the question "the attribution period for accruing Richmond's expected postretirement health care benefit obligation to Alicea is during the period when Alicea is" is option (b) 53 to 65 years old.