Income Tax Regulations — 8302
8302 (1) For the purposes of subsection 8301(6), the benefit entitlement of an individual under a defined benefit provision of a registered pension plan in respect of a calendar year and an employer is the portion of the individual’s benefit accrual under the provision in respect of the year that can reasonably be considered to be attributable to the individual’s employment with that employer. Benefit Accrual for Year (2) For the purposes of subsection (1), and subject to subsections (6), (8) and (9), the benefit accrual of an individual under a defined benefit provision of a registered pension plan in respect of a calendar year is the amount computed in accordance with the following rules: (a) determine the portion of the individual’s normalized pension under the provision at the end of the year that can reasonably be considered to have accrued in respect of the year; (b) where the year is after 1989 and before 1995, determine the lesser of the amount determined under paragraph (a) and (i) for 1990, $1,277.78, (ii) for 1991 and for 1992, $1,388.89, (iii) for 1993, $1,500.00, and (iv) for 1994, $1,611.11; and (c) where, in determining the amount of lifetime retirement benefits payable to the individual under the provision, there is deducted from the amount of those benefits that would otherwise be payable the amount of lifetime retirement benefits payable to the individual under a money purchase provision of a registered pension plan or the amount of a lifetime annuity payable to the individual under a deferred profit sharing plan, reduce the amount that would otherwise be determined under this subsection by 1/9 of the total of all amounts each of which is the pension credit of the individual for the year under such a money purchase provision or deferred profit sharing plan. Normalized Pensions (3) For the purposes of paragraph (2)(a), and subject to subsection (11), the normalized pension of an individual under a defined benefit provision of a registered pension plan at the end of a particular calendar year is the amount (expressed on an annualized basis) of lifetime retirement benefits that would be payable under the provision to the individual immediately after the end of the particular year if (a) where lifetime retirement benefits have not commenced to be paid under the provision to the individual before the end of the particular year, they commenced to be paid immediately after the end of the year; (b) where the individual had not attained 65 years of age before the time at which lifetime retirement benefits commenced to be paid (or are assumed by reason of paragraph (a) to have commenced to be paid) to the individual, the individual attained that age at that 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; (d.1) no reduction in the amount of the individual’s lifetime retirement benefits were applied in respect of benefits described in any of clauses 8503(2)(a)(vi)(A) to (C); (d.2) no adjustment that is permissible under subparagraph 8503(2)(a)(ix) were made to the amount of the individual’s lifetime retirement benefits; (e) where the amount of the individual’s lifetime retirement benefits depends on the remuneration received by the individual in a calendar year (in this paragraph referred to as the “other year”) other than the particular year, the remuneration received by the individual in the other year were determined in accordance with the following rules: (i) where the individual was remunerated for both the particular year and the other year as a person who rendered services on a full-time basis throughout each of the years, the remuneration received by the individual in the other year is identical to the remu