What is the maximum death benefit payable under a defined benefit pension plan for Richard, based on his projected monthly benefit?

In a defined benefit pension plan, the death benefit often depends on the plan's specific rules and the participant's projected monthly benefits. If Richard's projected monthly benefit is such that it leads to a calculated death benefit of $100,000, it would align with common practices of defined benefit plans, which typically provide a death benefit that is a multiple of the monthly pension or a set amount based on actuarial calculations.

The amount of $100,000 could be determined based on Richard's age, years of service, and the plan's structure, which may include factors such as the expected payout duration or a formula that considers the accrued benefits. Therefore, if Richard's specific circumstances fit these parameters, the maximum death benefit of $100,000 emerges as an appropriate figure under the guidelines of that pension plan.

Understanding the mechanics behind defined benefit plans is crucial; they provide a predictable income based on factors such as salary history and employment duration, and similarly structured death benefits are a standard feature, ensuring beneficiaries receive a financial safety net in the event of the participant’s passing.