Income Tax Regulations — 8303
nister has approved in writing the application of this paragraph in respect of the past service event, and (iv) the plan is not a designated plan, (g) where (i) the provision is a flat benefit provision, (ii) at the particular time, the amount (expressed on an annual basis) of lifetime retirement benefits provided under the provision to each member in respect of pensionable service in each calendar year does not exceed 40 per cent of the defined benefit limit for the year that includes the particular time, (iii) the conditions in subsection 8306(2) are satisfied in respect of the provision and the past service event in connection with which the normalized pension is being calculated, and (iv) only one fixed rate is applicable in determining the amount of the individual’s lifetime retirement benefits, benefits provided as a direct consequence of an increase in the value of the fixed rate at any time (in this paragraph referred to as the “time of increase”) after the pension credit year, other than benefits (v) provided as a consequence of a second or subsequent increase in the value of the fixed rate after the time that retirement benefits under the provision commenced to be paid to the individual, or (vi) that would not have become provided had the value of the fixed rate been increased to the greater of (A) the greatest of all amounts each of which is an amount determined by the formula A × (B / C) where A is a value of the fixed rate in the period beginning on January 1, 1984 and ending immediately before the time of increase, B is the average wage for the calendar year that includes the time of increase, and C is the average wage for the later of 1984 and the calendar year in which the value of the fixed rate used for A was first effective, and (B) the amount determined by the formula D + (E × F) where D is the value of the fixed rate immediately before the time of increase, E is the amount by which the value of the fixed rate used for D would have to be increased to provide an increase in the individual’s annual lifetime retirement benefits equal to $18 for each year of pensionable service, and F is the duration (measured in years, including any fraction of a year) of the period beginning on the later of January 1, 1984 and the day on which the value of the fixed rate used for D was first effective and ending on the day that includes the time of increase, (h) where the provision is a flat benefit provision, benefits provided as a direct consequence of an increase at any time (in this paragraph referred to as the “time of increase”) after the pension credit year in the value of a fixed rate under the provision where (i) the value of the fixed rate was increased pursuant to an agreement made before 1992, and (ii) at the time the agreement was made, it was reasonable to expect that the percentage increase in the value of the fixed rate would approximate or be less than the percentage increase in the average wage from the calendar year in which the value of the fixed rate was last increased before the time of increase (or, if the increase is the first increase, the calendar year in which the initial value of the fixed rate was first applicable) to the calendar year that includes the time of increase, (i) where the provision is a flat benefit provision under which the amount of each member’s retirement benefits depends on the member’s job category or rate of pay in such a manner that the ratio of the amount of lifetime retirement benefits to remuneration does not significantly increase as remuneration increases, benefits provided as a direct consequence of a change, after the pension credit year, in the individual’s job category or rate of pay, (j) where (i) the individual’s pensionable service under the provision ends before the particular time, (ii) the individual’s lifetime retirement benefits under the provision have been adjusted by a cost-of-living or similar adjustment in respect of the period (in this paragraph referred