Income Tax Regulations — 8504
he plan as a proportion of the services that would have been rendered by the member throughout the period to such employers had the member rendered services on a full-time basis, and, for the purposes of this subsection, (c) where a member of a pension plan has rendered services throughout a period to 2 or more employers who participate in the plan, the employers shall be deemed to be, throughout the period, the same employer, and (d) where a period is (i) an eligible period of reduced pay or temporary absence of a member of a pension plan with respect to an employer, or (ii) a period of disability of the member, the member shall be deemed to have (iii) rendered services throughout the period on a regular basis (having regard to the services rendered by the employee before the period) to the employer or employers by whom the member was employed before the period, and (iv) received remuneration throughout the period at a rate commensurate with the member’s rate of remuneration before the period. Retirement Benefits before Age 65 (5) For the purposes of subparagraph 8502(c)(i), the following conditions are applicable in respect of retirement benefits (other than retirement benefits payable as the result of the death of another member) payable under a defined benefit provision of a pension plan to a member of the plan for the period (in this subsection referred to as the “bridging period”) from the time the benefits commence to be paid to the time the member attains 65 years of age: (a) the amount (expressed on an annualized basis) of retirement benefits payable to the member for that part of the bridging period that is in the calendar year in which the benefits commence to be paid does not exceed the amount determined by the formula (A × B) + (0.25 × C × (D ÷ 35)) + (0.3333 × E × (F ÷ 35)) where A is the defined benefit limit for the calendar year in which the benefits commence to be paid, B is the aggregate of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is pensionable service of the member under the provision, C is the average of the Year’s Maximum Pensionable Earnings for the year in which the benefits commence to be paid and for each of the 2 immediately preceding years, D is the amount by which the lesser of 35 and the amount determined for B exceeds the amount determined for F, E is (i) for years after 2027, the average of the Year’s Additional Maximum Pensionable Earnings for the calendar year in which the benefits commence to be paid and for each of the four immediately preceding years, and (ii) for years prior to 2028, the average of the Year’s Additional Maximum Pensionable Earnings for the year in which the benefits commence to be paid and for each of the immediately preceding years after 2023, and F is the lesser of 35 and the amount determined for B for years after 2023; and (b) the amount of retirement benefits (expressed on an annualized basis) payable to the member for that part of the bridging period that is in a particular calendar year after the year in which the retirement benefits commence to be paid does not exceed the product of (i) the amount determined by the formula set out in paragraph (a), and (ii) the greatest of all amounts each of which is the ratio of (A) the average Consumer Price Index for a calendar year not earlier than the calendar year in which the retirement benefits commence to be paid and not later than the particular year to (B) the average Consumer Price Index for the calendar year in which the retirement benefits commence to be paid. Pre-1990 Benefits (6) For the purposes of subparagraph 8502(c)(i), and subject to subsection (7), the lifetime retirement benefits provided under a defined benefit provision of a pension plan to a member of the plan in respect of pensionable service in a particular calendar year before 1990 (in this subsection referred to as the “benefit year”) are subject to the condition that (a) the amo