Income Tax Regulations — 8503
ce Index after the retirement benefits commence to be paid (other than increases before the particular time), and (ii) interest (computed at a reasonable rate) from the particular time to the time the single amount is paid; (n) the payment, with respect to an individual after the death of a member, of a single amount in full or partial satisfaction of the individual’s entitlement to other benefits under the provision, where (i) the individual is a beneficiary of the member, (ii) the single amount does not exceed the total of (A) the present value (at the particular time determined in accordance with subsection (2.1)) of the other benefits that, as a consequence of the payment, cease to be provided, and (B) interest (computed at a reasonable rate) from the particular time to the time the single amount is paid, and (iii) if the other benefits in respect of which the single amount is paid include benefits described in paragraph (e) and the beneficiary was a spouse or common-law partner or former spouse or common-law partner of the member at the time of the member’s death, the single amount is not transferred from the plan directly to another registered pension plan, a registered retirement savings plan or a registered retirement income fund except with the approval of the Minister; and (o) retirement benefits provided to a member or a beneficiary of the member after the death of the member, if the beneficiary is a spouse or common-law partner or former spouse or common-law partner of the member, as permitted by the Pension Benefits Standards Act, 1985 or a similar law of a province where (i) the life expectancy of the individual is significantly shorter than normal and has been so certified by a medical doctor or nurse practitioner licensed under the laws of a province or of the place where the individual resides, (ii) the retirement benefits replace all or a portion of retirement benefits (referred to in subparagraph (iii) as the “former benefits”) that would otherwise be payable under the provision with respect to the individual, and (iii) at the time the retirement benefits replace the former benefits, the present value of the benefits does not exceed the present value of the former benefits. Rule for Commutation of Benefits (2.1) For the purpose of determining the limit on a single amount that can be paid with respect to an individual under paragraph (2)(m) or (n), the particular time referred to in that paragraph is (a) except where paragraph (b) applies, the time the single amount is paid; and (b) an earlier time than the time the single amount is paid, where (i) the amount is based on a determination of the actuarial value (at the earlier time) of the individual’s benefits, (ii) the use of the earlier time in determining the actuarial value (A) is required by the Pension Benefits Standards Act, 1985 or a similar law of a province, or (B) is reasonable having regard to accepted actuarial practice and the circumstances in which the individual acquires the right to the payment, and (iii) except where clause (ii)(A) applies, the earlier time is no more than two years before the time the single amount is paid. Conditions Applicable to Benefits (3) For the purposes of subsection 8501(2) and subparagraph 8502(c)(i), the following conditions are applicable in respect of the benefits provided under each defined benefit provision of a pension plan: Eligible Service (a) the only lifetime retirement benefits provided under the provision to a member (other than additional lifetime retirement benefits provided to a member because the member is totally and permanently disabled at the time the member’s retirement benefits commence to be paid) are lifetime retirement benefits provided in respect of one or more of the following periods (other than the portion of a period that is after the calendar year in which the member attains 71 years of age), namely, (i) a period throughout which the member is employed in Canada by, and receives remune