Being a government employee, Nancy was a member of a contributory, defined benefit pension plan, with a normal retirement age of 60. She joined the plan immediately upon being hired. The plan provides a retirement pension based on 2% per year of service of her average pensionable earnings for the last 5 years of service. Benefits are reduced by CPP offset of 0.7% of the average YMPE for the last three years of service.

	Nancy's Average Pensionable Earnings	Year's Maximum Pensionable Earnings (YMPE)
5 years ago	$47,850
4 years ago	$50,242
3 years ago	$52,755	$54,900
2 years ago	$55,392	$55,300
Last year	$58,162	$55,900

  

Based on this information, Nancy's average pensionable earnings for the las 5 years of service with the federal government was $52,880.20and her basic monthly pension at age 60 is $2,291.47.

 

How much of a monthly retirement pension benefit can Nancy Expect to receive at age 65 based on strictly her membership in her employers registered pension plan ?

Answer rating: 100% (QA)

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