Question

2) Calculate the pension benefit that would be paid for the following years of service and...

2) Calculate the pension benefit that would be paid for the following years of service and last 3 years’ salaries.

A) 40 years; $37,101; $36,544; $38,101

B) 7 years; $103,548; $107,626; $112,055

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Homework Answers

Answer #1

The Formula

Average Salary * Pensionable Service / 70

A)

Maximum Average Salary for last three years is 37248.7
Maximum Pensionable Service considered for Pension is 35 years
So, upon applying the formula, (37248.7 * 35 / 70) = 18,624.33 per month is the maximum pension that one can earn through the Pension scheme.

B)

Maximum Average Salary for last three years is 107713
Pensionable Service considered for Pension is 7 years
So, upon applying the formula, (107713 * 7 / 70) = 10,771.3 per month is the maximum pension that one can earn through the Pension scheme.
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