Income Tax Regulations — 8503
idging benefits under the provision not commence before lifetime retirement benefits commence to be paid under the provision to the member does not apply if, as a consequence of the election, no lifetime retirement benefits remain payable under the provision to the member; and (b) for the purpose of determining whether retirement benefits provided under the provision to beneficiaries of the member are in accordance with paragraphs (2)(c), (d) and (k), the election may be disregarded. Suspension or Cessation of Pension (8) A pension plan may provide for (a) the suspension of payment of a member’s retirement benefits under a defined benefit provision of the plan where (i) the retirement benefits payable to the member after the suspension are not altered by reason of the suspension, or (ii) subsection (9) is applicable in respect of the member’s retirement benefits; and (b) the cessation of payment of any additional benefits that are payable to a member under a defined benefit provision of the plan because of a physical or mental impairment of the member or the termination of the member’s employment under a downsizing program (within the meaning assigned by subsection 8505(1)). Re-employed Members (9) Subject to subsection (10), where a pension plan provides, in the case of a member who becomes an employee of a participating employer after the member’s retirement benefits under a defined benefit provision of the plan have commenced to be paid, that (a) payment of the member’s retirement benefits under the provision is suspended while the member is employed by a participating employer, and (b) the amount of retirement benefits payable to the member after the suspension is redetermined (i) to include benefits in respect of all or a part of the period throughout which payment of the member’s benefits was suspended, (i.1) where the retirement benefits payable under the provision to the member after the suspension are not adjusted by any cost-of-living or similar adjustments in respect of the period throughout which payment of the member’s benefits was suspended, to take into account the member’s remuneration from the employer for the period throughout which payment of the benefits was suspended, (ii) where the member was totally and permanently disabled at the time the member’s retirement benefits commenced to be paid, to include benefits in respect of all or a part of the period of disability of the member, (iii) where the amount of the member’s retirement benefits was previously determined with a reduction computed by reference to the member’s age, duration of service, or both, or with any other similar reduction, by redetermining the amount of the reduction, or (iv) where payment of the member’s retirement benefits resumes after the member attains 65 years of age, by applying an adjustment for the purpose of compensating, in whole or in part, for the payments foregone by the member after attaining 65 years of age, the following rules apply: (c) the condition in paragraph (3)(b) is not applicable in respect of benefits provided under the provision to the member in respect of a period throughout which payment of the member’s benefits is suspended, (d) where the member was totally and permanently disabled at the time the member’s retirement benefits commenced to be paid, the condition in paragraph (3)(b) is not applicable in respect of benefits provided under the provision to the member in respect of a period of disability of the member, (e) the conditions in paragraphs (2)(b) and (3)(c) and (d) and section 8504 are applicable in respect of benefits payable under the provision to the member after a suspension of the member’s retirement benefits as if the member’s retirement benefits had not previously commenced to be paid, (f) for the purpose of paragraph 8502(c) as it applies in respect of benefits provided under the provision on the death of the member during or after a period throughout which payment of the member’s benefits is su