Income Tax Regulations — 8509
 Where benefits are provided under a defined benefit provision of a grandfathered plan to a member of the plan as a consequence of the member having become, before 1992, physically or mentally impaired, the following rules apply: (a) the conditions in this Part (other than the condition in paragraph (b)) do not apply in respect of the benefits; (b) the prescribed conditions for the registration of the plan include the condition that the benefits are acceptable to the Minister; and (c) subsections 147.1(8) and (9) of the Act do not apply to render the plan a revocable plan where those subsections would not so apply if the member’s pension credits under the provision were determined without regard to the benefits. Conditions Not Applicable to Grandfathered Plan (5) Where a pension plan is a grandfathered plan, (a) the conditions referred to in paragraph 8501(2)(b) do not apply before 1992 in respect of the plan; (b) the condition in paragraph 8502(d) does not apply in respect of distributions that are made before 1992 under a defined benefit provision of the plan; and (c) the conditions in paragraphs 8503(3)(a) and (b) do not apply in respect of benefits provided under a defined benefit provision of the plan in respect of periods before 1992. PA Limits for Grandfathered Plan for 1991 (6) Subsections 147.1(8) and (9) of the Act do not apply in respect of a grandfathered plan for a calendar year before 1992 if (a) the plan does not contain a money purchase provision in that year; or (b) no contributions are made in respect of that year under the money purchase provisions of the plan. Limit on Pre-Age 65 Benefits (7) Where a pension plan is a grandfathered plan or would be a grandfathered plan if the references to “March 27, 1988” in the definitions existing plan and grandfathered plan in subsection 8500(1) were read as references to “June 7, 1990” and the references to “March 28, 1988” in the definition existing plan in that subsection were read as references to “June 8, 1990”, (a) the conditions in paragraphs 8504(5)(a) and (b) apply only in respect of retirement benefits provided in respect of periods after 1991; and (b) the amounts that are determined for B and D under paragraph 8504(5)(a) are based only on periods of pensionable service after 1991. Benefit Accrual Rate Greater than 2 Per Cent (8) Where a pension plan is a grandfathered plan or would be a grandfathered plan if the references to “March 27, 1988” in the definitions existing plan and grandfathered plan in subsection 8500(1) were read as references to “July 31, 1991” and the references to “March 28, 1988” in the definition existing plan in that subsection were read as references to “August 1, 1991”, (a) the condition in paragraph 8503(3)(g) applies only in respect of lifetime retirement benefits provided under a defined benefit provision of the plan in respect of periods after 1994; and (b) subparagraph 8503(3)(h)(iv) is not applicable in respect of lifetime retirement benefits provided under a defined benefit provision of the plan to a member unless the formula for determining the amount of the member’s lifetime retirement benefits complies with the condition in paragraph 8503(3)(g) as that condition would, but for this subsection, apply. Benefits under Plan other than Grandfathered Plan (9) The following rules apply in respect of the benefits provided under a defined benefit provision of a pension plan that is not a grandfathered plan: (a) the condition in paragraph 8502(c) does not apply in respect of benefits provided with respect to an individual (i) to whom retirement benefits have commenced to be paid under the provision before 1992, or (ii) who has died before 1992; and (b) the prescribed conditions for the registration of the plan include the condition that all benefits referred to in paragraph (a) are acceptable to the Minister. Money Purchase Benefits Exempt from Conditions (10) The Minister may exempt from the condition in paragraph 8502(c) all or a por