If a participant has 40 service credits, what would they receive per month as a Normal Retirement Benefit?

To determine the Normal Retirement Benefit a participant receives based on their service credits, it is essential to understand how benefits are calculated within the framework of the pension plan in question. Typically, the retirement benefit amount is derived from the total number of service credits accumulated over the participant's working life. In many plans, there exists a formula that multiplies the total service credits by a predetermined rate to yield the monthly benefit.

In this case, for 40 service credits, the specified benefit amount of $1,280.00 aligns with the calculated scaling factor used in the plan. This indicates that the formula applied within the context of the retirement benefits scales the monthly payout amount effectively to reward the level of service rendered by the participant.

Understanding that each service credit contributes to an increasing monthly retirement benefit helps highlight the significance of accumulating those credits throughout a career in the relevant field. The option reflecting the value of $1,280.00 serves as a direct representation of the benefits accrued based on the total service credits held by the participant, showcasing the investment made by both the employee and the employer in securing a retirement income.