Income Tax Regulations — 8507
period, pursuant to terms of the plan that apply in respect of periods that are not regular periods of employment, (iii) the lifetime retirement benefits or the contributions, as the case may be, exceed the benefits that would otherwise be provided or the contributions that would otherwise be made if the benefits or contributions were based on the services actually rendered by the individual and the remuneration actually received by the individual, (iv) the individual’s pension adjustment for the year with respect to the employer includes an amount in respect of the lifetime retirement benefits or the contributions, as the case may be, (v) no benefits are provided in respect of the period to the individual under a defined benefit provision of any registered pension plan in which the employer does not participate, (vi) no contributions are made by or on behalf of the individual in respect of the period under a money purchase provision of a registered pension plan or a deferred profit sharing plan in which the employer does not participate, and (vii) no part of the period is after the earlier of (A) the time at which bridging benefits commence to be paid to the individual in circumstances to which subsection 8503(17) applied, and (B) the earliest day in respect of which benefits have been provided to the individual in circumstances to which subsection 8503(19) applied; and (b) a period of parenting of an individual is all or a part of a period that (i) begins at the time of the birth of a child of whom the individual is a natural parent, or at the time the individual adopts a child, and (ii) ends 18 months after that time. Cumulative Additional Compensation Fraction (4) For the purposes of this section, the cumulative additional compensation fraction of an individual with respect to an employer, determined to any time, is the aggregate of all amounts each of which is the additional compensation fraction that is associated with a period that ends at or before that time and that is a qualifying period of the individual in a calendar year after 1990 with respect to (a) the employer; (b) any other employer who does not deal at arm’s length with the employer; or (c) any other employer who participates in a registered pension plan in which the employer participates for the benefit of the individual. Additional Compensation Fraction (5) For the purposes of subsection (4), the additional compensation fraction associated with a qualifying period of an individual in a calendar year with respect to a particular employer is the amount determined by the formula E / D where D is the amount that is determined for D under paragraph (2)(b) in respect of the qualifying period, and E is (a) if (i) all or a part of the qualifying period is a period throughout which the individual renders services to another employer pursuant to an arrangement in respect of which subsection 8308(7) is applicable, (ii) the particular employer is a lending employer for the purposes of subsection 8308(7) as it applies in respect of the arrangement, and (iii) the particular employer and the other employer deal with each other at arm’s length, the amount that would be determined under subsection (2) in respect of the qualifying period if, in the determination of the amount under paragraph (2)(a), no remuneration were included in respect of the portion of the qualifying period referred to in subparagraph (a)(i), and (b) otherwise, the amount that is determined under subsection (2) in respect of the qualifying period. Exclusion of Subperiods (6) A reference in this section to a qualifying period of an individual in a calendar year with respect to an employer or to a period of disability of an individual in a calendar year does not include a period that is part of a longer such period. Complete Period of Reduced Pay (7) In subsection (2), complete period of reduced pay of an individual with respect to an employer means a period that consists of one or more periods each of w