18. rRsP Versus Employer's Plan in a Job Chauge Situation You are currently earning S76,000 per year salary which will increase at an average annual inflation rate of696 until you mandatorily retire on your 65th birthday. To-day is your 50th birthday. You have now 16 years of pensionable service credit with your present employer where you are required to compulsorily participate in a "defined benefit pension plan". Such a pension plan gives you a contractual right to retire with an annual pension of (.017 x number of years of service prior to retirement x average annual salary over 3 years of service prior to retirement). This pension will be indexed at 50 percent of expected inflation rate of 6 percent over your retirement years; and all pension benefits will terminate at your expected exit from this world at age 80. You have now