Which four criteria determine the amount of a participant's NEBF benefit?

• A. I, II, III, IV
• B. I, IV, V, VI
• C. II, III, IV, VII
• D. I, III, V, VI

Answer: (B)

NEBF benefit amounts come from a formula that uses four inputs: the participant’s credited service years, the final average earnings used in the calculation, the plan’s accrual rate or multiplier, and the retirement age or eligibility when benefits begin. These four factors determine how large the monthly benefit will be, since they together shape the amount the benefit formula produces. The items corresponding to these factors are the ones labeled I, IV, V, and VI, which is why that option is correct. In short, it’s not just how much is contributed or worked, but how many years of service, the earnings base used, the multiplier, and when you start benefits that set the NEBF amount.