Income Tax Regulations — 8509
l benefits referred to in paragraph (a) are acceptable to the Minister. Money Purchase Benefits Exempt from Conditions (10) The Minister may exempt from the condition in paragraph 8502(c) all or a portion of the benefits provided under a money purchase provision of a pension plan with respect to a member that may reasonably be considered to derive from contributions made before 1992 under a money purchase provision of a registered pension plan. Stipulation Not Required for Pre-1992 Plans (10.1) The conditions in paragraphs 8503(4)(c) and 8506(2)(d) do not apply in respect of a pension plan (a) that was a registered pension plan on December 31, 1991, (b) in respect of which an application for registration was made to the Minister before 1992, or (c) that was established to provide benefits to one or more individuals in lieu of benefits to which the individuals were entitled under another pension plan that is a plan described in paragraph (a) or (b) or this paragraph, whether or not benefits are also provided to other individuals. Benefits Acceptable to Minister (11) For greater certainty, where benefits under a defined benefit provision of a pension plan are, by reason of paragraph 8503(3)(e) or subsection (3), subject to the condition that they be acceptable to the Minister, the provisions of this section shall not be considered to limit in any way the requirements that may be imposed by the Minister in respect of the benefits. PA Limits — 1996 to 2002 (12) Neither subsection 147.1(8) nor (9) of the Act applies to render a registered pension plan a revocable plan at the end of any calendar year after 1995 and before 2003 solely because a pension adjustment, a total of pension adjustments or a total of pension credits of an individual for the year (each of which is, in this subsection, referred to as a “test amount”) is excessive where the subsection would not apply to render the plan a revocable plan at the end of the year if each test amount were decreased by the lesser of (a) the amount, if any, by which the lesser of (i) the total of all amounts each of which is (A) a pension credit under a defined benefit provision of a registered pension plan that is included in determining the test amount, or (B) a pension credit under a money purchase provision of a registered pension plan or under a deferred profit sharing plan that is included in determining the test amount and that is taken into account, under paragraph 8302(2)(c), in determining a pension credit referred to in clause (A), and (ii) $15,500 exceeds the money purchase limit for the year, and (b) the total of all amounts each of which is a pension credit referred to in clause (a)(i)(A). Maximum Benefits Indexed Before 2005 (13) Where (a) a pension plan is a grandfathered plan or would be a grandfathered plan if the references to “March 27, 1988” in the definitions existing plan and grandfathered plan in subsection 8500(1) were read as references to “March 5, 1996” and the references to “March 28, 1988” in the definition existing plan in that subsection were read as references to “March 6, 1996”, (b) under the terms of the plan as they read immediately before March 6, 1996, the plan provided for benefits that are benefits to which a condition in any of subsections 8504(1), (5) and (6) and paragraph 8505(3)(d) applies and, at that time, the benefits complied with the condition, and (c) as a consequence of the change in the defined benefit limit effective March 6, 1996, the benefits would, if this Part were read without reference to this subsection, cease to comply with the condition, the following rules apply: (d) for the purpose of determining at any time after March 5, 1996 and before 1998 whether the benefits comply with the condition, the defined benefit limit for each year after 1995 is deemed to be the amount that it would be if the definition money purchase limit in subsection 147.1(1) of the Act were applied as it read on December 31, 1995, and (e) for the purpose