Question

It's 2022 and Faaz and Hima have been married for 25 years. Faaz has contributed to the CPP for 40 years and can collect the full CPP benefit. Hima has contributed to the CPP for 30 years and can collect 40% of the 2021 CPP benefit. They would like to split their CPP pension. What will be their respective CPP benefit amounts after the split?

Answer 1

Faaz and Hima can calculate their respective CPP benefit amounts by considering years of contribution and maximum benefit limits.

Step-by-step explanation:

To split the CPP pension, Faaz and Hima need to calculate their respective benefit amounts.

1. Faaz has contributed for 40 years and can collect the full CPP benefit, which is the maximum amount for 2022.

2. Hima has contributed for 30 years and can collect 40% of the 2021 CPP benefit.

To calculate Hima's benefit amount, we can multiply the 2021 CPP benefit by 40%.

After calculating both benefit amounts, Faaz and Hima will have their respective CPP benefits.