Income Tax Regulations — 8502
8502 For the purposes of section 8501, the following conditions are applicable in respect of a pension plan: Primary Purpose (a) the primary purpose of the plan is to provide periodic payments to individuals after retirement and until death in respect of their service as employees; Permissible Contributions (b) each contribution that is made to the plan after 1990 is an amount that (i) is paid by a member of the plan in accordance with the plan as registered, where the amount is credited to the member’s account under a money purchase provision of the plan or is paid in respect of the member’s benefits under a defined benefit provision of the plan, (ii) is paid in accordance with a money purchase provision of the plan as registered, by an employer with respect to the employer’s employees or former employees, (iii) is an eligible contribution that is paid in respect of a defined benefit provision of the plan by an employer with respect to the employer’s employees or former employees, (iv) is transferred to the plan in accordance with any of subsections 146(16), 146.3(14.1), 147(19), 147.3(1) to (8) and 147.5(21) of the Act, (v) is acceptable to the Minister and that is transferred to the plan from a pension plan that is maintained primarily for the benefit of non-residents in respect of services rendered outside Canada, or (v.1) is paid by the trustee of a trust described in paragraph 6802(h) or (i), where the amount would have been an eligible contribution if the amount had been paid in respect of a defined benefit provision of the plan by an employer with respect to the employer’s employees or former employees, and, for the purposes of this paragraph, (vi) an eligible contribution is a contribution that is paid by an employer in respect of a defined benefit provision of a pension plan where it is an eligible contribution under subsection 147.2(2) of the Act or, in the case of a plan in which Her Majesty in right of Canada or a province is a participating employer, would be an eligible contribution under subsection 147.2(2) of the Act if all amounts held to the credit of the plan in the accounts of Canada or the province were excluded from the assets of the plan, and (vii) the portion of each contribution that is made by Her Majesty in right of Canada or of a province, or by a person described in paragraph 4802(1)(d), in respect of a defined benefit provision of the plan and that can reasonably be considered to be made with respect to one or more employees or former employees of another person is deemed to be a contribution made by that other person; Permissible Benefits (c) the plan does not provide for, and its terms are such that it will not under any circumstances provide for, any benefits other than benefits (i) that are provided under one or more defined benefit provisions and are in accordance with subsection 8503(2), paragraphs 8503(3)(c) and (e) to (i) and section 8504, (ii) that are provided under one or more money purchase provisions and are in accordance with subsection 8506(1), (iii) that the plan is required to provide by reason of a designated provision of the law of Canada or a province, or that the plan would be required to provide if each such provision were applicable to the plan with respect to all its members, or (iv) that the plan is required to provide to an individual who is a spouse or common-law partner or former spouse or common-law partner of a member of the plan by reason of a provision of the law of Canada or a province applicable in respect of the division of property between the member and the individual, on or after the breakdown of their marriage or common-law partnership, in settlement of rights arising out of their marriage or common-law partnership; Permissible Distributions (d) each distribution that is made from the plan is (i) a payment of benefits in accordance with the plan as registered, (ii) a transfer of property held in connection with the plan where the transfer is made in accordan