Income Tax Regulations — 8504
y an employer who participated under the provision for the benefit of the member, and I is the number of months for which total indexed compensation is included in the amount determined for H, and, for the purposes of this subsection, the member’s total indexed compensation for a month for the purpose of the provision is the amount determined by the formula J × (K / L) where J is the aggregate of all amounts each of which is such portion of the member’s compensation for the calendar year (in this subsection referred to as the “compensation year”) that includes the month from an employer who participated under the provision for the benefit of the member as may reasonably be considered to have been received in the month or to otherwise relate to the month, K is the greatest of all amounts each of which is the average wage for a calendar year not before the later of the compensation year and 1986 and not after the year of commencement, and L is the average wage for the later of the compensation year and 1986. Predecessor Employer (2.1) For the purposes of subsection (2), if the pensionable service of the member under the provision includes a period throughout which the member was employed by a predecessor employer to an employer who participates in the plan, the predecessor employer is deemed to have participated under the provision for the benefit of the member. Alternative Compensation Rules (3) Lifetime retirement benefits provided to a member under a defined benefit provision of a pension plan shall be deemed to comply with the conditions in subsection (1) where they would so comply if either or both of the following rules were applicable: (a) determine, for the purpose of subsection (2), the member’s compensation from an employer for a calendar year by adding to the compensation otherwise determined such portion of the amount of each bonus and retroactive increase in remuneration paid by the employer to the member after the year as may reasonably be considered to be in respect of the year and by deducting therefrom such portion of the amount of each bonus and retroactive increase in remuneration paid by the employer to the member in the year as may reasonably be considered to be in respect of a preceding year; and (b) determine, for the purpose of computing the amount J in subsection (2), the portion of the member’s compensation from an employer for a calendar year that may reasonably be considered to relate to a month in the year by apportioning the compensation uniformly over the period in the year in respect of which it was paid. Part-time Employees (4) Where the pensionable service of a member under a defined benefit provision of a pension plan includes a period throughout which the member rendered services on a part-time basis to an employer who participates in the plan, the lifetime retirement benefits provided under the provision to the member shall be deemed to comply with the conditions in subsection (1) where they would so comply or be deemed by subsection (3) to so comply if (a) for the purpose of determining the amount J in subsection (2), the member’s compensation from an employer for a calendar year in which the member rendered services on a part-time basis to the employer were the amount that it is reasonable to expect would have been the member’s compensation for the year from the employer if the member had rendered services to the employer on a full-time basis throughout the period or periods in the year throughout which the member rendered services to the employer, and (b) in determining the amount G in subparagraph (1)(a)(ii), the duration of each period were multiplied by a fraction (not greater than one) that measures the services rendered by the member throughout the period to employers who participate in the plan as a proportion of the services that would have been rendered by the member throughout the period to such employers had the member rendered services on a full-time basis, and, for the purposes