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payable on a joint and last survivor basis. In this case, the spouse would receive at least 60% of the reduced earlyretirement pension earned by the deceased member. These benefits would be in addition to a refund of the employee'scontribution plus interest with respect to plan membership prior to 1987.36Moe belongs to a defined-benefit pension plan that offers a pension valued at 2% of best earnings foreach year of service, commencing at age 60. His plan does allow early retirement, with a standardreduction of 3% for each year of early retirement. As a result of a disability, Moe is forced to retire at age38, with only 10 years of service, and best average earnings of $40,000. If Moe works in a province withprogressive disability provisions, what will Moe's pension entitlement be at this time?IncorrectThe correct answer:$8,000Your answer:$5,120Solution:Most jurisdictions now stipulate that full credit must be given for pensions earned up to the date of retirement due todisability, without an actuarial reduction. Therefore, Moe's pension entitlement at the time of his disability at age 38 wouldbe $8,000, calculated as (2% × 10 × $40,000).37Carol has worked for the same employer for 30 years. Through these years, she has been a member of adefined-benefit pension plan, based on 2% per year of service times final earnings at the NRA of 65 withno option of unreduced early retirement. Her salary averaged $60,000 for the last 5 years. When sheturned 61 this year, Carol decided to take her pension, in spite of a 3.5% penalty for each year less thanthe NRA. What would be the amount of Carol's pension?IncorrectThe correct answer:$30,960Your answer:$27,360Solution:If Carol was retiring now at normal retirement age, her pension would be $36,000, calculated as ($60,000 × (30 × 2%)).Her actual pension will be reduced by 14%, calculated as (3.5% × 4). Her early retirement pension would be $30,960,calculated as ($36,000 × (1 - 14%)).38Audrey has been a member of her defined-benefit pension plan since she was 27 years old. The pensionplan is governed by the Federal Pension Benefits Standards Act. If the plan specifies a normal retirementage of 65 and a qualifying factor of 90, what is the latest age that pension payments can commence?CorrectThe correct answer:71 years
12/6/2020VirtualUniversity.CIFP.ca10/24Your answer:71 yearsSolution:Under the federal regulations, pension payments must commence no later than the end of the year in which the memberturns 71 years of age.39Jordan, who is currently 35 years old, has been contributing to his employer's defined-benefit pensionplan for the past 8 years, such that his total contributions to date, including interest, amount to $40,000.His employer has contributed $50,000 over that same time frame, including interest. Jordan's employer islocated in a province that has a "45 and 10" provision. Jordon is terminating his current employment. Heis entitled to receive the following lump-sum cash payment:CorrectThe correct answer:$40,000Your answer:$40,000Solution: