In 1928, what monthly pension amount was assured for members with 20 years of service who reached age 65?

• A. $20 per month
• B. $40 per month
• C. $60 per month
• D. $80 per month

Answer: (B)

Pension benefits at the time were often set up as a simple formula: a fixed dollar amount added for each year of service, paid monthly after reaching retirement age. The total monthly pension is years of service times that accrual rate, and it wasn’t tied to final salary in this type of plan.

In this case, the accrual rate was $2 per year of service. With 20 years of service, the calculation is 20 × $2 = $40 per month. Reaching age 65 simply triggers eligibility for this defined amount. If the per-year rate were different, the monthly pension would change accordingly (for example, $1 per year would give $20; $3 per year would give $60; $4 per year would give $80), but the plan in question used $2 per year, yielding $40 monthly.