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Assume we are in the year 2 0 1 0 . In 2 0 0 8 , John started working for Tictac Inc. This year

Assume we are in the year 2010. In 2008, John started working for Tictac Inc. This year the company decided to offer all its employees a defined benefit plan. The DB plan offers a pension of 1.4% of career average earning for each year of service. John has always maximized his RRSP contributions each year. The company paid him a salary of $60,000 in 2008, $65,000 in 2009 and this year it is $70,000. All the employees who are plan members are given the opportunity to purchase 2 years of past service which is exempt by CRA. What is Johns RRSP room for the year 2011?

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