What is the annual defined benefit pension dollar limit per year of service mentioned?

The annual defined benefit pension dollar limit is a critical figure used to determine the maximum benefits that can be accrued in a registered pension plan over a participant's lifetime of service. This limit is designed to ensure that pension plans provide a reasonable and predictable retirement income while also adhering to regulatory requirements.

The correct answer is approximately $2,647 per year of service. This amount reflects the limit set by the Income Tax Act concerning the calculation of benefits that can be provided under a defined benefit pension plan. It is important for pension plan administrators and financial planners to understand this limit for both compliance purposes and for advising clients effectively on their retirement planning strategies.

Understanding the significance of this limit is essential for optimizing retirement income and ensuring that one's pension benefits remain within regulatory bounds. The other figures do not align with the most current regulatory cap, making them incorrect for this particular question.