Income Tax Regulations — 8517
8517 (1) Subject to subsections (2) to (3.1), for the purpose of applying paragraph 147.3(4)(c) of the Act to the transfer of an amount on behalf of an individual in full or partial satisfaction of the individual’s entitlement to benefits under a defined benefit provision of a registered pension plan, the prescribed amount is the amount that is determined by the formula A × B where A is the amount of the individual’s lifetime retirement benefits under the provision commuted in connection with the transfer, as determined under subsection (4), and B is (a) the present value factor that corresponds to the age attained by the individual at the time of the transfer, determined pursuant to the table to this subsection, or (b) where the present value factor referred to in paragraph (a) is less than the present value factor that corresponds to the next higher age, the present value factor determined by interpolation between those two factors on the basis of the age (expressed in years, including any fraction of a year) of the individual. TABLE Attained Age Present Value Factor Under 50 9.0 50 9.4 51 9.6 52 9.8 53 10.0 54 10.2 55 10.4 56 10.6 57 10.8 58 11.0 59 11.3 60 11.5 61 11.7 62 12.0 63 12.2 64 12.4 65 12.4 66 12.0 67 11.7 68 11.3 69 11.0 70 10.6 71 10.3 72 10.1 73 9.8 74 9.4 75 9.1 76 8.7 77 8.4 78 8.0 79 7.7 80 7.3 81 7.0 82 6.7 83 6.4 84 6.1 85 5.8 86 5.5 87 5.2 88 4.9 89 4.7 90 4.4 91 4.2 92 3.9 93 3.7 94 3.5 95 3.2 96 or over 3.0 Minimum Prescribed Amount (2) Where an amount is transferred in full satisfaction of an individual’s entitlement to benefits under a defined benefit provision of a registered pension plan, the prescribed amount for the purposes of paragraph 147.3(4)(c) of the Act in respect of the transfer is the greater of the amount that would, but for this subsection, be the prescribed amount, and the balance, at the time of the transfer, in the individual’s net contribution account (within the meaning assigned by subsection 8503(1)) in relation to the provision. Underfunded Pension (3) Subsection (3.01) applies in respect of a transfer of an amount on behalf of an individual in full or partial satisfaction of the individual’s entitlement to benefits under a defined benefit provision of a registered pension plan if (a) the individual is an employee or a former employee of an employer (or a predecessor employer of the employer); (b) the employer (i) was a participating employer under the provision, (ii) is the subject of proceedings commenced under the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act , and (iii) has ceased making regular contributions under the provision; (c) after the commencement of the proceedings, lifetime retirement benefits paid or payable to the individual under the provision have been reduced because the assets of the plan are insufficient to pay the benefits provided under the provision of the plan as registered; (d) the plan is not a designated plan; and (e) the Minister has approved the application of subsection (3.01) in respect of the transfer. (3.001) Subsection (3.01) applies in respect of a transfer of an amount on behalf of an individual in full or partial satisfaction of the individual’s entitlement to benefits under a defined benefit provision of a registered pension plan if (a) the individual is an employee or a former employee of an employer (or a predecessor employer of the employer) that was a participating employer under the provision; (b) lifetime retirement benefits paid or payable to the individual under the provision have been reduced because the assets of the plan are insufficient to pay the benefits provided under the provision of the plan as registered; (c) the Minister has approved the application of subsection (3.01) in respect of the transfer; and (d) either (i) the plan is not an individual pension plan and the reduction in the lifetime retirement benefits paid or payable to the individual has been approved under the Pension Benefits Stan