The pension adjustment (PA) is the difference between the pension earned in a defined benefit pension plan and the amount that can be contributed to a defined contribution pension plan.
The pension earned in a defined benefit plan is calculated as:
PA = (Pension earned in the year) x (9) - $600
where 9 is a factor that takes into account the future value of the pension and $600 is the minimum pension adjustment.
The pension earned in the year is calculated as:
Pension earned in the year = (Pensionable earnings) x (Pension benefit rate)
Substituting the given values, we get:
Pension earned in the year = $68,000 x 1.5% = $1,020
PA = $1,020 x 9 - $600 = $8,580
Therefore, his pension adjustment is $8,580.
The answer is: $8,580.