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After 3 5 years, Lynn handed in her notice to her employer letting them know of her retirement date set for December 3 1 ,

After 35 years, Lynn handed in her notice to her employer letting them know of her retirement date set for December 31,2024. As a busy C-Suite executive at one of the major banks in Quebec, she is training her successor to take over her position.
a) When it comes to Lynns pension, she is quite fortunate as she is part of a Defined Benefit Pension Plan (DBPP). She is however wondering what her annual pension will be based on a rate of 2% that is calculated using her average best three consecutive years of income. (1 mark)
Lynns salary over the last 7 years
2018201920202021202220232024
$677,000 $776,200 $679,800 $607,800 $659,150 $680,125 $700,000
Calculate Lynns annual pension: (1 mark)
b) Lynn turns 65 years old on January 1,2025. Based on your calculation in a) regarding Lynns annual pension, how much Old Age Security (OAS) would Lynn keep? Hint: The OAS clawback rate is 15% and as the 2025 numbers are not yet available, assume that for 2025, the maximum monthly OAS amount at age 65 is $715.00 with an OAS clawback threshold of $95,274.(1 mark)
Calculation: (1 mark)
c) As Chief Legal Officer (CLO), Lynn brought her successor, Erik up to speed on a number of pressing and confidential issues, including the upcoming substantial lawsuit that the bank was hit with. Lynn was shocked when she found out that Erik sold his shares in the bank the next day as he knew the stock price would go down once the bank released their quarterly earnings to the public. (1 mark)
This information is considered _______________ and if Erik trades based on this information, it could be considered ______________.(1 mark -.5 each)
d) Moe is Lynns husband. He has been a great support for Lynn while she moves up the ranks in her career. Moe has never worked and took care of their two children growing up and now takes care of their grandchildren. Highlight and underline the correct response.
(1 mark -.25 each)
Moe is eligible for Old Age Security (OAS) at age 65. True or False
Moe is eligible for Quebec Pension Plan (QPP) at age 65. True or False
Moe is eligible to contribute to a Tax-Free Savings Account. True or False
Moe is eligible to contribute to a Registered Retirement Savings Account (RRSP).
True or False
e) Neither Moe nor Lynn have a Will. As their closest friend, you are concerned with their lack of estate planning. What two types of Will would you recommend that Moe and Lynn obtain and state your reason why? (1 mark)
1.____________________(.25 marks)
2.____________________(.25 marks)
Reason (.5 marks)_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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