Congratulations! You have been successful in gaining an employment position with the federal government beginning January 2, 2021. The terms of your employment include a defined benefit pension plan which entitles you to 2% of your salary for each year of service that you work with the federal government. Your starting salary is $50,000 per year and you are guaranteed a 2% increase for each year of service. Assuming that there are no other changes throughout your employment answer the following questions.

In order to facilitate understanding, I hope the teachers handwriting is neat

1. You work with the government for 30 years when you will be 55 years old. What will be your final salary?
2. According to Statistics Canada you are expected to live until you are 85 years old. The government uses a discount rate of 5%. What is the current service cost related to your employment that will be recognized by the government in 2021 after one year of service?
3. What is the defined benefit obligation (the actuary amount) December 31, 2026 after 5 years of service?