Peter Gimon recently received and offer of employment for a senior financial analyst from Toronto Hydro Corporation. He has informed Human Resources that he is pleased with the overall package but would like to negotiate a few items, which they have agreed to. They have offered to either increase his base salary from $75,000 per year to $80,0000 or leave the base salary at $75,000 but provide a signing bonus of $$7,500. Peter's bonus rate is 15% per year based on both individual and corporate performance. The company has met its target for bonus purposes over the last 5 years and there is a high probability that it will continue to do so. They have also given Peter the option to join the defined benefit pension (DB) plan or the defined contribution (DC) pension plan with the Company contributing 5% of base salary for the DB plan and 6% of base salary for the DC .

1. What should Peter do regarding the salary increase or signing bonus and why?
2. Which plan DB or DC should Peter choose and why?