Income Tax Regulations (C.R.C., c. 945)

8305. (1) Where, for the purposes of this Part, it is necessary to determine the portion of an amount of benefits provided with respect to a member of a registered pension plan under a defined benefit provision of the plan that is attributable to the member’s employment with a particular employer, the following rules apply, subject to subsection 8308(7):

• (a) the determination shall be made by the plan administrator;

• (b) benefits provided as a consequence of services rendered by the member to an employer who participates in the plan shall be regarded as attributable to employment with that employer, whether the benefits become provided at the time the services are rendered or at a subsequent time; and

• (c) the determination shall be made in a manner that

  • (i) is reasonable in the circumstances,

  • (ii) is not inconsistent with such determinations made previously, and

  • (iii) results in the full amount of benefits being attributed to employment with one or more employers who participate in the plan.

(2) Where the administrator of a registered pension plan does not comply with the requirements of subsection (1) in connection with the determination of an amount under this Part at any time,

• (a) the plan becomes, at that time, a revocable plan; and

• (b) the Minister shall make any determinations referred to in subsection (1) that the administrator fails to make, or fails to make in accordance with that subsection.

8306. (1) For the purposes of subsection 147.1(10) of the Act as it applies in respect of a past service event and the benefits provided under a defined benefit provision of a registered pension plan with respect to a particular member of the plan, a certification of the Minister is not required where

• (a) each provisional PSPA of the member that is associated with the past service event is nil;

• (b) the conditions in subsection (2) or (3) are satisfied;

• (c) the conditions in subsection (2) or (3) are substantially satisfied and the Minister waives in writing the requirement for certification;

• (c.1) paragraph 8303(5)(f.1) was applicable in determining the provisional PSPA of the member that is associated with the past service event; or

• (d) the past service event is deemed by paragraph 8304(3)(b) to have occurred immediately after the end of 1990.

(2) The following are conditions for the purposes of paragraphs (1)(b) and (c) and 8303(5)(g):

• (a) there are more than 9 active members under the provision;

• (b) no more than 25 per cent of the active members under the provision are specified active members under the provision;

• (c) for all or substantially all of the active members under the provision, the amount of lifetime retirement benefits accrued under the provision has increased as a consequence of the past service event;

• (d) where there is a specified active member under the provision,

  • (i) the amounts C and D in subparagraph (ii) are greater than nil, and

  • (ii) the amount determined by the formula A/C does not exceed the amount determined by the formula B/D where

    A 

    is the aggregate of all amounts each of which is the amount of lifetime retirement benefits accrued under the provision, immediately after the past service event, to a specified active member under the provision,

    B 

    is the aggregate of all amounts each of which is the amount of lifetime retirement benefits accrued under the provision, immediately after the past service event, to an active member (other than a specified active member) under the provision,

    C 

    is the aggregate of all amounts each of which is the amount of lifetime retirement benefits accrued under the provision, immediately before the past service event, to a specified active member under the provision, and

    D 

    is the aggregate of all amounts each of which is the amount of lifetime retirement benefits accrued under the provision, immediately before the past service event, to an active member (other than a specified active member) under the provision; and

• (e) the benefits provided under the provision as a consequence of the past service event to members of the plan who are not active members under the provision are not more advantageous than such benefits provided to active members under the provision.

(3) The following are conditions for the purposes of paragraphs (1)(b) and (c):

• (a) the past service event consists of the establishment of the provision;

• (b) there are more than 9 active members under the provision;

• (c) no more than 25 per cent of the active members under the provision are specified active members under the provision;

• (d) the member is not a specified active member under the provision;

• (e) if the member is not an active member under the provision, for each of the 5 years immediately preceding the calendar year in which the past service event occurs,

  • (i) the member was not connected at any time in the year with an employer who participates in the plan, and

  • (ii) the aggregate of all amounts each of which is the remuneration of the member for the year from an employer who participates in the plan did not exceed 2 1/2 times the Year’s Maximum Pensionable Earnings for the year; and

• (f) the aggregate of all amounts each of which is a provisional PSPA of the member that is associated with the past service event does not exceed 7/2 of the money purchase limit for the year in which the past service event occurs.

(4) For the purposes of this section as it applies in respect of a past service event,

• (a) a member of a pension plan is an active member under a defined benefit provision of the plan if

  • (i) lifetime retirement benefits accrue under the provision to the member in respect of a period that immediately follows the time the past service event occurs, or

  • (ii) the member is entitled, immediately after the time the past service event occurs, to lifetime retirement benefits under the provision in respect of a period before that time and it is reasonable to expect, at that time, that lifetime retirement benefits will accrue under the provision to the member in respect of a period after that time; and

• (b) an active member under a defined benefit provision of a pension plan is a specified active member under the provision if

  • (i) the member is connected, at the time of the past service event, with an employer who participates in the plan, or

  • (ii) it is reasonable to expect, at the time of the past service event, that the aggregate of all amounts each of which is the remuneration of the member for the calendar year in which the past service event occurs from an employer who participates in the plan will exceed 2 1/2 times the Year’s Maximum Pensionable Earnings for the year.