61 Liam works for Lamneth Technology and is a member of its defined benefit registered pension plan. The RPP is a final-earnings plan where a 1.5% unit percentage is applied to the average of the final three years of pensionable service. Liam intends to retire on December 31st of this year at which time he would have accumulated 26 years of pensionable service with Lamneth. If the money purchase limit is $27,230, what is the MAXIMUM annual pension benefit Liam can expect to receive? The table indicates the level of earnings for Liam for the past ten years: Number of Years Prior to Retirement Earnings $47,100 10 years ago 9 years ago $48,650 8 years ago $50,240 7 years ago $53,635 6 years ago $55,700 5 years ago $57,930 4 years ago $59,500 3 years ago $64,825 2 years ago $67,900 1 year ago $71,160 this year $73,395 a) $27,230.00 b) $27,619.15 Oc) $64,855.56 Od) $70,818.33
61 Liam works for Lamneth Technology and is a member of its defined benefit registered pension plan. The RPP is a final-earnings plan where a 1.5% unit percentage is applied to the average of the final three years of pensionable service. Liam intends to retire on December 31st of this year at which time he would have accumulated 26 years of pensionable service with Lamneth. If the money purchase limit is $27,230, what is the MAXIMUM annual pension benefit Liam can expect to receive? The table indicates the level of earnings for Liam for the past ten years: Number of Years Prior to Retirement Earnings $47,100 10 years ago 9 years ago $48,650 8 years ago $50,240 7 years ago $53,635 6 years ago $55,700 5 years ago $57,930 4 years ago $59,500 3 years ago $64,825 2 years ago $67,900 1 year ago $71,160 this year $73,395 a) $27,230.00 b) $27,619.15 Oc) $64,855.56 Od) $70,818.33
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
D3)
![61
Liam works for Lamneth Technology and is a member of its defined benefit registered pension plan.
The RPP is a final-earnings plan where a 1.5% unit percentage is applied to the average of the final
three years of pensionable service. Liam intends to retire on December 31st of this year at which
time he would have accumulated 26 years of pensionable service with Lamneth. If the money
purchase limit is $27,230, what is the MAXIMUM annual pension benefit Liam can expect to
receive? The table indicates the level of earnings for Liam for the past ten years:
Number of Years Prior to Retirement
Earnings
10 years ago
$47,100
9 years ago
$48,650
8 years ago
$50,240
7 years ago.
$53,635
6 years ago
$55,700
5 years ago
$57,930
4 years ago
$59,500
3 years ago
$64,825
2 years ago
$67,900
1 year ago
$71,160
this year
$73,395
a) $27,230.00
Ob) $27,619.15
Oc) $64,855.56
d) $70,818.33](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea612e7f-c66b-489d-aaf2-79eb9569e2d3%2F9413d938-2a84-4da6-b45a-32757cbcab42%2F1za2yjr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:61
Liam works for Lamneth Technology and is a member of its defined benefit registered pension plan.
The RPP is a final-earnings plan where a 1.5% unit percentage is applied to the average of the final
three years of pensionable service. Liam intends to retire on December 31st of this year at which
time he would have accumulated 26 years of pensionable service with Lamneth. If the money
purchase limit is $27,230, what is the MAXIMUM annual pension benefit Liam can expect to
receive? The table indicates the level of earnings for Liam for the past ten years:
Number of Years Prior to Retirement
Earnings
10 years ago
$47,100
9 years ago
$48,650
8 years ago
$50,240
7 years ago.
$53,635
6 years ago
$55,700
5 years ago
$57,930
4 years ago
$59,500
3 years ago
$64,825
2 years ago
$67,900
1 year ago
$71,160
this year
$73,395
a) $27,230.00
Ob) $27,619.15
Oc) $64,855.56
d) $70,818.33
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