In 2020, Iris and her employer each contributed $4,000 to her DBPP which will pay her a pension of 1.5% for every year of service based on the three years of income. Her salary for 2020 was $72,000 and the three best years average $71,000.

a. What is Iris’s pension adjustment for 2020? Calculate the benefit earned using all 3 methods described in class. SHOW ALL YOUR WORK.

b. How much can she contribute to her RRSP in 2021?

c. If she began collecting her pension in 2021, how much would it be if she had 33 years of service?

Answer rating: 100% (QA)

a Pension adjustment 4000 15 3 years 180 Pension benefit ... View the full answer