Income Tax Regulations — 8517
 and (d) either (i) the plan is not an individual pension plan and the reduction in the lifetime retirement benefits paid or payable to the individual has been approved under the Pension Benefits Standards Act, 1985 or a similar law of a province, or (ii) the plan is an individual pension plan, the amount transferred from the plan on behalf of the individual is the last payment from the plan to the individual and all the property held in connection with the plan is distributed from the plan on behalf of plan members within 90 days of the transfer. (3.01) If this subsection applies, the description of A in subsection (1) is to be read as follows in respect of the transfer: A is the amount of the individual’s lifetime retirement benefits under the provision commuted in connection with the transfer, as determined under subsection (4), but without reference to the benefit reduction referred to in paragraph (3)(c) or (3.001)(b), as the case may be; and (3.02) If a particular amount is transferred in full or partial satisfaction of an individual’s entitlement to benefits under a defined benefit provision of a registered pension plan and subsection (3.01) had applied in respect of a transfer (in this subsection referred to as the “initial transfer”) of an amount on behalf of the individual under the provision, for the purpose of paragraph 147.3(4)(c) of the Act the prescribed amount in respect of the transfer of the particular amount is the lesser of (a) the particular amount, and (b) the amount, if any, by which the prescribed amount in respect of the initial transfer exceeds the total of all amounts each of which is the amount of a previous transfer to which this subsection or subsection (3.01) applied in respect of the individual’s entitlement to benefits under the provision. Benefits Provided With Surplus on Plan Wind-up (3.1) Where an amount is transferred in full or partial satisfaction of an individual’s entitlement to benefits under a defined benefit provision of a registered pension plan and the benefits include benefits (in this subsection referred to as “ancillary benefits”) that are permissible solely because of subsection 8501(7), the prescribed amount for the purpose of paragraph 147.3(4)(c) of the Act in respect of the transfer is the total of (a) the amount that would, but for this subsection, be the prescribed amount, and (b) an amount approved by the Minister not exceeding the lesser of (i) the present value (at the time of the transfer) of the ancillary benefits that, as a consequence of the transfer, cease to be provided, and (ii) the total of all amounts each of which is, in respect of a previous transfer from the provision to a money purchase provision of a registered pension plan, a registered retirement savings plan or a registered retirement income fund in full or partial satisfaction of the individual’s entitlement to other benefits under the defined benefit provision, the amount, if any, by which (A) the prescribed amount for the purpose of paragraph 147.3(4)(c) of the Act in respect of the previous transfer exceeds (B) the amount of the previous transfer. Amount of Lifetime Retirement Benefits Commuted (4) For the purposes of subsection (1), and subject to subsection (7), the amount of an individual’s lifetime retirement benefits under a defined benefit provision of a registered pension plan commuted in connection with the transfer of an amount on behalf of the individual in full or partial satisfaction of the individual’s entitlement to benefits under the provision is the aggregate of (a) where retirement benefits have commenced to be paid under the provision to the individual, the amount (expressed on an annualized basis) by which the individual’s lifetime retirement benefits under the provision are reduced 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