Income Tax Regulations — 8510
cial Rules — Multi-employer Plan (5) Where a pension plan is a multi-employer plan in a calendar year, (a) each member of the plan who is connected at any time in the year with an employer who participates in the plan shall be deemed, for the purposes of applying the conditions in sections 8503 and 8504 in respect of the plan in the year and in each subsequent year, not to be so connected in the year; (b) paragraph 8503(3)(b) shall, in its application in respect of benefits provided under a defined benefit provision of the plan in respect of a period in the year, be read without reference to subparagraph (ii) thereof; and (c) the condition in paragraph 8503(3)(k) and the rule in subsection 8504(8) shall apply in the year in respect of the plan without regard to benefits provided under any other pension plan. Special Rules — Specified Multi-employer Plan (6) Where a pension plan is a specified multi-employer plan in a calendar year, (a) a contribution that is made in the year in respect of a defined benefit provision of the plan by an employer with respect to the employer’s employees or former employees in accordance with the plan as registered shall be deemed, for the purpose of paragraph 8502(b), to be an eligible contribution; (b) subparagraph 8502(c)(i) shall, in its application in the year in respect of the plan, be read as follows: “(i) benefits that are in accordance with subsection 8503(2), paragraphs 8503(3)(c), (e) and (g) and subsections 8504(5) and (6)” (c) the conditions in paragraphs 8503(3)(j) and (4)(a) do not apply in the year in respect of the plan; and (d) a payment made in the year under a defined benefit provision of the plan with respect to a member is deemed to comply with the conditions in paragraph 8503(2)(h) (in the case of a payment made in connection with the member’s termination from the plan otherwise than by reason of death) or (j) (in the case of a payment made after the death of the member) where it would comply if paragraph 8503(2)(h) were read as follows: “(h) the payment, with respect to a member in connection with the member’s termination from the plan (otherwise than by reason of death), of one or more single amounts where (i) the payments are the last payments to be made under the provision with respect to the member, and (ii) each single amount does not exceed the amount that would be the balance in the member’s net contribution account immediately before the time of payment of the single amount if, for each contribution that is a specified contribution, the account were credited at the time of the specified contribution with an additional amount equal to the amount of the specified contribution and, for this purpose, a specified contribution is (A) a contribution included in determining a pension credit of the member under the provision because of paragraph 8301(5)(b), or (B) a contribution made before 1990 in respect of the provision by a participating employer, to the extent that the contribution can reasonably be considered to have been determined by reference to the number of hours worked by the member or some other measure specific to the member; Additional Prescribed Conditions (7) Where a pension plan is a specified multi-employer plan in a calendar year, the prescribed conditions for the registration of the plan include, in that year, the following conditions: (a) when employer and member contribution rates under the plan were last established, it was reasonable to expect that, for each calendar year beginning with the year in which the contribution rates were last established, (i) the aggregate of all amounts each of which is the pension credit of an individual for the year with respect to an employer under a benefit provision of the plan would not exceed (ii) 18 per cent of the aggregate of all amounts each of which is, for an individual and an employer where the pension credit of the individual for the year with respect to the employer under a benefit provision of the plan is