Don't really get the Maximum pension benefit. Is this the maximum amount one can get from a Pension plan? Plus, not really sure what the Pension Benefit entitlement is and how the math comes into play? Is this calculated for RRSP maximum yearly contributions? Confused?
Maximum Pension Benefit the the maximum amount an employee can earn and still get benefits from a DBPP. For example if you are C-Suite and make $500,000 a year for 30 years your DBPP would be $171,000x0.02x30=$102,600 per year after you retire in 2022. The Maximum Pension Benefit number increases every year and it follows the YMPE Defined Benefit number on CRA website. For the Pension Benefit entitlement it is the assumption that it will need 9 times more money contributed to get the pension benefit at retirement. they reduce the contribution limit for your RRSP because he have a pension plan.
@@nucleardog6675 Thank-you for the reply…Good Explanation…BTW, I did write both exams for The Wealth Management Essentials course and passed. The second one was not an easy exam but I am not from the industry so this may account for the level of difficulty too… But, I have written the Canadian Securities and the Technical Analysis course too.
Don't really get the Maximum pension benefit. Is this the maximum amount one can get from a Pension plan? Plus, not really sure what the Pension Benefit entitlement is and how the math comes into play? Is this calculated for RRSP maximum yearly contributions? Confused?
Maximum Pension Benefit the the maximum amount an employee can earn and still get benefits from a DBPP. For example if you are C-Suite and make $500,000 a year for 30 years your DBPP would be $171,000x0.02x30=$102,600 per year after you retire in 2022. The Maximum Pension Benefit number increases every year and it follows the YMPE Defined Benefit number on CRA website. For the Pension Benefit entitlement it is the assumption that it will need 9 times more money contributed to get the pension benefit at retirement. they reduce the contribution limit for your RRSP because he have a pension plan.
@@nucleardog6675 Thank-you for the reply…Good Explanation…BTW, I did write both exams for The Wealth Management Essentials course and passed. The second one was not an easy exam but I am not from the industry so this may account for the level of difficulty too… But, I have written the Canadian Securities and the Technical Analysis course too.