Income Tax Regulations — 8515
8515 (1) For the purposes of subsections (5) and (9), and subject to subsection (3), a registered pension plan that contains a defined benefit provision is a designated plan throughout a calendar year if the plan is not maintained pursuant to a collective bargaining agreement and (a) the aggregate of all amounts each of which is a pension credit (as determined under Part LXXXIII) for the year of a specified individual under a defined benefit provision of the plan exceeds (b) 50 per cent of the aggregate of all amounts each of which is a pension credit (as determined under Part LXXXIII) for the year of an individual under a defined benefit provision of the plan. Designated Plan in Previous Year (2) For the purposes of subsections (5) and (9), a registered pension plan is a designated plan throughout a particular calendar year after 1990 if the plan was a designated plan at any time in the immediately preceding year, except where the Minister has waived in writing the application of this subsection in respect of the plan. Exceptions (3) A registered pension plan is not a designated plan in a calendar year pursuant to subsection (1) if (a) the plan would not be a designated plan in the year pursuant to that subsection if the reference in paragraph (1)(b) to “50 per cent” were read as a reference to “60 per cent”; (b) the plan was established before the year; and (c) the amount determined under paragraph (1)(a) in respect of the plan for the immediately preceding year did not exceed the amount determined under paragraph (1)(b). (d) and (e) [Repealed, SOR/2011-188, s. 27] (3.1) If a designated plan has more than nine active members, the Minister may waive the application of any provision of this Part or Part LXXXIII that would otherwise apply to the designated plan because of its status as a designated plan. Specified Individuals (4) An individual is a specified individual for the purposes of paragraph (1)(a) in respect of a pension plan and a particular calendar year if (a) the individual was connected at any time in the year with an employer who participates in the plan; or (b) the aggregate of all amounts each of which is the remuneration of the individual for the year from an employer who participates in the plan, or from an employer who does not deal at arm’s length with a participating employer, exceeds 2 1/2 times the Year’s Maximum Pensionable Earnings for the year. Eligible Contributions (5) For the purpose of determining whether a contribution that is made by an employer to a registered pension plan at a time when the plan is a designated plan is an eligible contribution under subsection 147.2(2) of the Act, a prescribed condition is that (a) the contribution satisfies the condition in subsection (6); or (b) the contribution would satisfy the condition in subsection (6) if (i) paragraph (6)(b) and subparagraph (7)(e)(i) were applicable only in respect of retirement benefits that became provided under the plan after 1990, (ii) paragraph (6)(c) were applicable only in respect of those benefits payable after the death of a member that relate to retirement benefits that became provided under the plan to the member after 1990, and (iii) the assumption as to the time retirement benefits (other than retirement benefits that became provided after 1990) will commence to be paid is the same for the purposes of the maximum funding valuation as for the purposes of the actuarial valuation that forms the basis for the recommendation referred to in subsection 147.2(2) of the Act pursuant to which the contribution is made. Funding Restriction (6) The condition referred to in subsection (5) is that the contribution would be required to be made for the plan to have sufficient assets to pay benefits under the defined benefit provisions of the plan, as registered, with respect to the employees and former employees of the employer if (a) required contributions were determined on the basis of a maximum funding valuation prepared as of the same