Income Tax Regulations — 8515
lan, 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 effective date as 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; (a.1) each defined benefit provision of the plan provided that, with respect to restricted-funding members, retirement benefits are payable monthly in advance; (b) each defined benefit provision of the plan provided that, after retirement benefits commence to be paid with respect to a restricted-funding member, the benefits are adjusted annually by a percentage increase for each year that is one percentage point less than the percentage increase in the Consumer Price Index for the year, in lieu of any cost-of-living adjustments actually provided; (c) each defined benefit provision of the plan provided the following benefits after the death of a restricted-funding member who dies after retirement benefits under the provision have commenced to be paid to the member, in lieu of the benefits actually provided: (i) where the member dies within 5 years after retirement benefits commence to be paid under the provision, the continuation of the retirement benefits for the remainder of the 5 years as if the member were alive, and (ii) where an individual who is a spouse or common-law partner of the member when retirement benefits commence to be paid under the provision to the member is alive on the later of the day of death of the member and the day that is 5 years after the day on which the member’s retirement benefits commence to be paid, retirement benefits payable to the individual for the duration of the individual’s life, with the amount of the benefits payable for each month equal to 66 2/3 per cent of the amount of retirement benefits that would have been payable under the provision for the month to the member if the member were alive; (d) where more than one employer participates in the plan, assets and actuarial liabilities were apportioned in a reasonable manner among participating employers with respect to their employees and former employees; and (e) the rule in paragraph 147.2(2)(d) of the Act that provides for the disregard of a portion of the assets of the plan apportioned to the employer with respect to the employer’s employees and former employees were applicable for the purpose of determining required contributions pursuant to this subsection. Maximum Funding Valuation (7) For the purposes of subsection (6), a maximum funding valuation is a valuation prepared by an actuary in accordance with the following rules: (a) the projected accrued benefit method is used for the purpose of determining actuarial liabilities and current service costs; (b) the valuation rate of interest is 7.5 per cent per annum; (c) it is assumed that (i) the rate of increase in general wages and salaries and in each member’s rate of remuneration will be 5.5 per cent per annum, and (ii) the rate of increase in the Consumer Price Index will be 4 per cent per annum; (d) each assumption made in respect of economic factors other than those referred to in paragraph (c) is consistent with the assumptions in that paragraph; (e) in the case of a restricted-funding member, it is assumed that (i) retirement benefits will commence to be paid to the member no earlier than the day on which the member attains 65 years of age, (ii) the member will survive to the time the member’s retirement benefits commence to be paid, (iii) where the member is employed by a participating employer as of the effective date of the valuation, the member will continue in employment until the time the member’s retirement benefits commence to be paid, and (iv) when the member’s retirement benefits commence to be paid, the member will be married to a person who is the same age as the member; (f) the rate of mortali