Income Tax Regulations — 8517
as a result of the transfer, (b) where retirement benefits have not commenced to be paid under the provision to the individual, the amount (expressed on an annualized basis) by which the individual’s normalized pension (computed in accordance with subsection (5)) under the provision at the time of the transfer is reduced as a result of the transfer, and (c) where, in conjunction with the transfer, any other payment (other than an amount that is transferred in accordance with subsection 147.3(5) of the Act or that is transferred after 1991 in accordance with subsection 147.3(3) of the Act) is made from the plan in partial satisfaction of the individual’s entitlement to benefits under the provision, the amount (expressed on an annualized basis) by which (i) if paragraph (a) is applicable, the individual’s lifetime retirement benefits under the provision are reduced, and (ii) if paragraph (b) is applicable, the individual’s normalized pension (computed in accordance with subsection (5)) under the provision at the time of the payment is reduced, as a result of the payment, except to the extent that such reduction is included in determining, for the purposes of subsection (1), the amount of the individual’s lifetime retirement benefits under the provision commuted in connection with the transfer of another amount on behalf of the individual. Normalized Pensions (5) For the purposes of subsection (4), the normalized pension of an individual under a defined benefit provision of a registered pension plan at a particular time is the amount (expressed on an annualized basis) of lifetime retirement benefits that would be payable under the provision at the particular time if (a) lifetime retirement benefits commenced to be paid to the individual at the particular time; (b) where the individual has not attained 65 years of age before the particular time, the individual attained that age at the particular time; (c) all benefits to which the individual is entitled under the provision were fully vested; (d) where the amount of the individual’s lifetime retirement benefits would otherwise be determined with a reduction computed by reference to the individual’s age, duration of service, or both, or with any other similar reduction, no such reduction were applied; (e) where the amount of the individual’s lifetime retirement benefits depends on the amount of benefits provided under another benefit provision of the plan or under another plan or arrangement, a reasonable estimate were made of those other benefits; (f) where the individual’s lifetime retirement benefits would otherwise include benefits that the plan is required to provide by reason of a designated provision of the law of Canada or a province, or that the plan would be required to provide if each such provision were applicable to the plan with respect to all its members, such benefits were not included; and (g) except as otherwise provided by subsection (6), where the amount of the individual’s lifetime retirement benefits depends on (i) the form of benefits provided with respect to the individual under the provision (whether or not at the option of the individual), including (A) the benefits to be provided after the death of the individual, (B) the amount of retirement benefits, other than lifetime retirement benefits, provided to the individual, or (C) the extent to which the lifetime retirement benefits will be adjusted to reflect changes in the cost of living, or (ii) circumstances that are relevant in determining the form of benefits, the form of benefits and the circumstances were such as to maximize the amount of the individual’s lifetime retirement benefits on commencement of payment. Optional Forms (6) Where (a) the terms of a defined benefit provision of a registered pension plan permit an individual to elect to receive additional lifetime retirement benefits in lieu of benefits that would, in the absence of the election, be payable after the death of the individual if the