Income Tax Regulations — 8501
8501 (1) For the purposes of section 147.1 of the Act, and subject to sections 8509 and 8510, the prescribed conditions for the registration of a pension plan are (a) the conditions set out in paragraphs 8502(a), (c), (e), (f) and (l), (b) if the plan contains a defined benefit provision, the conditions set out in paragraphs 8503(4)(a) and (c), and (c) if the plan contains a money purchase provision, the conditions set out in paragraphs 8506(2)(a) and (d), and the following conditions: (d) there is no reason to expect, on the basis of the documents that constitute the plan and establish the funding arrangements, that (i) the plan may become a revocable plan pursuant to subsection (2), or (ii) the conditions in subsection 147.1(10) of the Act may not be complied with, and (e) there is no reason to expect that the plan may become a revocable plan under subsection 147.1(8) or (9) of the Act or subsections 8503(15) or (26) or 8506(4). Conditions Applicable to Registered Pension Plans (2) For the purposes of paragraph 147.1(11)(c) of the Act, and subject to sections 8509 and 8510, a registered pension plan becomes a revocable plan at any time that it fails to comply with (a) a condition set out in any of paragraphs 8502(b), (d), (g) to (k) and (m); (b) where the plan contains a defined benefit provision, a condition set out in paragraph 8503(3)(a), (b), (d), (j), (k) or (l) or (4)(b), (d), (e) or (f); or (c) where the plan contains a money purchase provision, a condition set out in any of paragraphs 8506(2)(b) to (c.1) and (e) to (i). Permissive Rules (3) The conditions in this Part do not apply in respect of a pension plan to the extent that they are inconsistent with the provisions of subsections 8503(6) and (8) and 8505(3) and (4). Supplemental Plans (4) Where (a) the benefits provided under a pension plan (in this subsection referred to as the “supplemental plan”) that contains one defined benefit provision and no money purchase provisions may reasonably be considered to be supplemental to the benefits provided under a defined benefit provision (in this subsection referred to as the “base provision”) of another pension plan, (b) the supplemental plan does not otherwise comply with the condition set out in paragraph 8502(a) or the condition set out in paragraph 8502(c), and (c) the Minister has approved the application of this subsection, which approval has not been withdrawn, for the purpose of determining whether the supplemental plan complies with the conditions in paragraphs 8502(a) and (c), the benefits provided under the base provision shall be considered to be provided under the supplemental plan. Benefits Payable after the Breakdown of the Marriage or Common-law Partnership (5) Where (a) an individual who is a spouse or common-law partner or former spouse or common-law partner of a member of a registered pension plan is entitled to receive all or a portion of the benefits that would otherwise be payable under the plan to the member, and (b) the entitlement was created (i) by assignment of benefits by the member, on or after the breakdown of their marriage or common-law partnership, in settlement of rights arising out of their marriage or common-law partnership, or (ii) by a provision of the law of Canada or a province applicable in respect of the division of property between the member and the individual, on or after the breakdown of their marriage or common-law partnership, in settlement of rights arising out of their marriage or common-law partnership, the following rules apply: (c) except where paragraph (d) applies, the benefits to which the individual is entitled are, for the purposes of this Part, deemed to be benefits provided and payable to the member, and (d) the benefits to which the individual is entitled are, for the purposes of this Part, deemed to be benefits provided and payable to the individual and not provided or payable to the member where (i) the entitlement of the individual was created by a provisio