Income Tax Regulations — 8505
bsection 8504(2)) for the purpose of the provision, indexed to the calendar year (in this paragraph referred to as the “year of commencement”) in which retirement benefits commence to be paid under the provision to the member, and (ii) the defined benefit limit for the year of commencement, B is the lesser of 7 and the amount, if any, by which 65 exceeds the member’s age (expressed in years, including any fraction of a year) at termination of employment, and C is the greatest of all amounts each of which is the ratio of (i) the average Consumer Price Index for a calendar year not earlier than the year of commencement and not later than the particular year to (ii) the average Consumer Price Index for the year of commencement; (e) [Repealed, SOR/95-64, s. 12] (f) the plan (i) does not permit the commutation of retirement benefits payable to the member, or (ii) permits the commutation of retirement benefits payable to the member only if the life expectancy of the member is significantly shorter than normal; and (g) lifetime retirement benefits that are permissible only by reason of this subsection are not provided to the member under any other defined benefit provision, unless this condition has been waived by the Minister. Re-employed Members (3.1) Where (a) a member of a pension plan becomes an employee of a participating employer after lifetime retirement benefits that are permissible only by reason of subsection (3) have commenced to be paid under a defined benefit provision of the plan to the member, and (b) payment of the member’s retirement benefits under the provision is suspended while the member is so employed, the condition in paragraph (3)(d) is applicable in respect of benefits payable under the provision to the member after the suspension as if (c) the member had not become so employed, and (d) payment of the member’s retirement benefits had not been suspended. Early Retirement Reduction (4) Where a member of a pension plan is a qualifying individual in relation to an approved downsizing program, the terms of a defined benefit provision of the plan that determine the amount by which the member’s lifetime retirement benefits under the provision are reduced because of the early commencement of the benefits may, under the downsizing program, be modified in such a way that the benefits do not comply with the condition in paragraph 8503(3)(c) but would so comply if the member’s benefits were provided in respect of employment in a public safety occupation. Exception for Future Benefits (5) Subsection (4) does not apply with respect to benefits that are provided to an individual in respect of a period that is after the day on which the individual’s employment was terminated under an approved downsizing program. Alternative CPI Indexing (6) Special retirement benefits provided to a member under a defined benefit provision of a pension plan shall be deemed to comply with the condition in paragraph (3)(d) where they would so comply if the amount C in that paragraph were replaced by a substantially similar measure of the change in the Consumer Price Index. Exclusion from Maximum Pension Rules (7) For the purpose of determining whether retirement benefits provided under a defined benefit provision of a pension plan comply with the conditions in subsections 8504(1) and (5), lifetime retirement benefits that are permissible only by reason of subsection (3) shall be disregarded. Exemption from Past Service Contribution Rule (8) Subsection 8503(15) does not apply in respect of a contribution that is made in respect of benefits provided to a qualifying individual pursuant to an approved downsizing program. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/92-51, s. 7; SOR/94-686, s. 79(F); SOR/95-64, s. 12