Income Tax Regulations — 8304.1
f the individual and the provision at or before the time of the termination, and D is the total of all amounts each of which is a PA transfer amount in relation to the individual’s termination from the provision; and (b) in any other case, nil. Defined Benefit Pension Credits (6) For the purpose of subparagraph (i) of the description of A in paragraph (5)(a), in determining an individual’s PAR in connection with the individual’s termination from a defined benefit provision of a registered pension plan, (a) the individual’s pension credits under the provision for the year in which the termination occurs shall be determined without regard to benefits provided after the time of the termination; and (b) the individual’s pension credits under the provision for each year in which the plan was a specified multi-employer plan are deemed to be nil. Grossed-up PSPA Amount (7) For the purposes of the descriptions of B in subsection 8303(7.1) and paragraph (5)(a), the grossed-up amount of an individual’s provisional PSPA with respect to an employer that is associated with a past service event is the amount that would be the provisional PSPA if (a) the values of C and D in subsections 8303(3) and 8304(5) were nil; and (b) the words “at the time the past service event occurred” in paragraph (b) of the description of A in subsection 8304(5) were read as “immediately before the time the past service event occurred”. Specified Distribution (8) For the purpose of the description of C in paragraph (5)(a), an amount paid under a defined benefit provision of a registered pension plan with respect to an individual is a specified distribution made in respect of the individual and the provision at the time it is paid, except to the extent that (a) it can reasonably be considered to be a payment of benefits in respect of any period before 1990; (b) it is transferred to another registered pension plan (other than a plan that is, at the time of the transfer, a specified multi-employer plan) in accordance with subsection 147.3(3) of the Act; (c) it is transferred to another defined benefit provision of the plan where the transfer would, if the provision and the other provision were in separate registered pension plans, constitute a transfer in accordance with subsection 147.3(3) of the Act; (d) it is a payment in respect of an actuarial surplus; (e) it is (i) a return of contributions made by the individual under the provision, where the contributions are returned pursuant to an amendment to the plan that also reduces the future contributions that would otherwise be required to be made under the provision by members of the plan and that does not reduce benefits provided under the provision, or (ii) a payment of interest in respect of contributions that are returned as described in subparagraph (i); (f) it can reasonably be considered to be a payment of benefits provided in respect of a period throughout which the plan was a specified multi-employer plan; or (g) it can reasonably be considered to be a payment of benefits provided in respect of a period throughout which the individual was employed outside Canada, where the benefits became provided as a consequence of a past service event in respect of which the Minister had consented to the application of subsection 8303(10) for the purpose of determining the individual’s provisional PSPAs. Property Made Available (9) Where property held in connection with a particular defined benefit provision of a pension plan is made available at any time to provide benefits with respect to an individual under another benefit provision of a pension plan, subsection (8) applies as if the amount of the property had been paid under the particular provision at that time with respect to the individual. PA Transfer Amount (10) Where (a) an individual has terminated, at a particular time after 1996, from a defined benefit provision (in this subsection referred to as the “former provision”) of a registered pension plan, (b) lif