Income Tax Regulations — 8506
idual is a beneficiary of the member and the single amount does not exceed the present value (at the time the single amount is paid) of the other benefits that, as a consequence of the payment, cease to be provided. Additional Conditions (2) For the purposes of section 8501, the following conditions are applicable in respect of each money purchase provision of a pension plan: Employer Contributions Acceptable to Minister (a) the amount of contributions that are to be made under the provision by each employer who participates in the plan is determined in a manner acceptable to the Minister; Employer Contributions with respect to Particular Members (b) each contribution that is made under the provision by an employer consists only of amounts each of which is an amount that is paid by the employer with respect to a particular member; Allocation of Employer Contributions (b.1) each contribution that is made under the provision by an employer is allocated to the member with respect to whom it is made; Employer Contributions Not Permitted (c) contributions are not made under the provision by an employer, and property is not transferred to the provision in respect of the actuarial surplus under a defined benefit provision of the plan or another registered pension plan, (i) at a time when there is a surplus under the provision, or (ii) at a time after 1991 when an amount that became a forfeited amount under the provision before 1990, or any earnings of the plan that are reasonably attributable to that amount, is being held in respect of the provision and has not been reallocated to members of the plan; Contributions Not Permitted (c.1) no contribution is made under the provision with respect to a member, and no amount is transferred for the benefit of a member to the provision from another benefit provision of the plan, at any time after the calendar year in which the member attains 71 years of age, other than an amount that is transferred for the benefit of the member to the provision (i) in accordance with subsection 146.3(14.1) or 147.3(1) or (4) of the Act, or (ii) from another benefit provision of the plan, where the amount so transferred would, if the benefit provisions were in separate registered pension plans, be in accordance with subsection 147.3(1) or (4) of the Act; Return of Contributions (d) where the plan is not established by an enactment of Canada or a province, it includes a stipulation that permits, for the purpose of avoiding revocation of the registration of the plan, a contribution made under the provision by a member or by an employer to be returned to the person who made the contribution, which stipulation may provide that a return of contributions is subject to the approval of the authority administering the Pension Benefits Standards Act, 1985 or a similar law of a province; Allocation of Earnings (e) the earnings of the plan, to the extent that they relate to the provision and are not reasonably attributable to forfeited amounts or a surplus under the provision, are allocated to plan members on a reasonable basis and no less frequently than annually; Payment or Reallocation of Forfeited Amounts (f) each forfeited amount under the provision (other than an amount forfeited before 1990) and all earnings of the plan that are reasonably attributable to the forfeited amount are (i) paid to participating employers, (ii) reallocated to members of the plan, or (iii) paid as or on account of administrative, investment or similar expenses incurred in connection with the plan on or before December 31 of the year immediately following the calendar year in which the amount is forfeited, or such later time as is permitted by the Minister under subsection (3); Retirement Benefits (g) retirement benefits (other than benefits permissible under paragraph (1)(e.1) or (e.2)) under the provision are provided by means of annuities that are purchased from a licensed annuities provider; Undue Deferral of Payment — Death of Member (h