Income Tax Regulations — 8304.1
8304.1 (1) For the purpose of subsection 248(1) of the Act, an individual’s total pension adjustment reversal for a calendar year is the total of all amounts each of which is (a) the pension adjustment reversal (in this Part and Part LXXXIV referred to as “PAR”) determined in connection with the individual’s termination in the year from a deferred profit sharing plan or from a benefit provision of a registered pension plan; or (b) the pension adjustment correction determined in respect of the individual for the year under subsection (16). Termination in 1997 (2) For the purposes of subsection (1) and the description of R in paragraph 8307(2)(b), where an individual terminates in 1997 from a deferred profit sharing plan or from a benefit provision of a registered pension plan, the termination is deemed to have occurred in 1998. PAR — Deferred Profit Sharing Plan (3) For the purposes of this Part and Part LXXXIV and subject to subsection (12), an individual’s PAR determined in connection with the individual’s termination from a deferred profit sharing plan is (a) if the conditions in subsection (13) are satisfied with respect to the termination, the total of all amounts each of which is an amount (i) included in determining a pension credit of the individual under the plan, and (ii) to which the individual has ceased, at or before the time of the termination, to have any rights, but does not include any amount to which a spouse or common-law partner or former spouse or common-law partner of the individual has acquired rights as a consequence of a breakdown of their marriage or common-law partnership; and (b) in any other case, nil. PAR — Money Purchase Provision (4) For the purposes of this Part and Part LXXXIV and subject to subsection (12), an individual’s PAR determined in connection with the individual’s termination from a money purchase provision of a registered pension plan is (a) if the conditions in subsection (14) are satisfied with respect to the termination, the total of all amounts each of which is an amount (i) included in determining a pension credit of the individual under the provision, and (ii) to which the individual has ceased, at or before the time of the termination, to have any rights, but does not include any amount to which a spouse or common-law partner or former spouse or common-law partner of the individual has acquired rights as a consequence of a breakdown of their marriage or common-law partnership; and (b) in any other case, nil. PAR — Defined Benefit Provision (5) For the purposes of this Part and Part LXXXIV and subject to subsections (6) and (12), an individual’s PAR determined in connection with the individual’s termination from a defined benefit provision of a registered pension plan is (a) where the conditions in subsection (14) are satisfied with respect to the termination, the amount determined by the formula A + B - C - D where A is the total of all amounts each of which is, in respect of a particular year that is the year in which the termination occurs or that is a preceding year, the lesser of (i) the total of all amounts each of which is the pension credit of the individual under the provision for the particular year with respect to an employer, and (ii) the RRSP dollar limit for the year following the particular year, B is the total of all amounts each of which is the portion of the grossed-up amount of a provisional PSPA (other than a provisional PSPA determined in accordance with subsection 8303(8)) of the individual that is associated with a past service event occurring before the time of the termination that can reasonably be considered to be attributable to benefits provided under the provision, C is the total of all amounts each of which is a specified distribution made in respect of the individual and the provision at or before the time of the termination, and D is the total of all amounts each of which is a PA transfer amount in relation to the individual’s termination from th