Income Tax Regulations — 8504
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 amount (expressed on an annualized basis) of such lifetime retirement benefits payable to the member for a particular calendar year (in this subsection referred to as the “payment year”) does not exceed (b) the amount determined by the formula (2 / 3) × A × B × C where A is the greater of $1,725 and the defined benefit limit for the year in which the benefits commence to be paid, B is the aggregate of all amounts each of which is the duration (measured as a fraction of a year) of a period in the benefit year that is pensionable service of the member under the provision, and C is the greatest of all amounts each of which is the ratio of (i) the average Consumer Price Index for a calendar year not earlier than the calendar year in which the lifetime retirement benefits commence to be paid and not later than the payment year to (ii) the average Consumer Price Index for the calendar year in which the lifetime retirement benefits commence to be paid. Limit Not Applicable (7) The condition in subsection (6) is not applicable in respect of lifetime retirement benefits provided to an individual in respect of periods of pensionable service in a particular calendar year if (a) at any time before June 8, 1990, a period in the particular year was pensionable service of the individual under a defined benefit provision of a registered pension plan; (b) on June 7, 1990, the individual was entitled, pursuant to an arrangement in writing, to be provided with lifetime retirement benefits under a defined benefit provision of a registered pension plan in respect of a period in the particular year, whether or not the individual’s entitlement was conditional on the individual making contributions under the provision; (c) at the beginning of the particular year, a period in a preceding year was pensionable service of the individual under a defined benefit provision of a registered pension plan, and the individual did not, by reason of disability or leave of absence, render services in the particular year to an employer who participated in the plan with respect to the individual; (d) contributions were made before June 8, 1990 by or on behalf of the individual under a money purchase provision of a registered pension plan in respect of the year; or (e) contributions were made in the year by or on behalf of the individual to a deferred profit sharing plan. Cross-plan Restrictions (8) Where an individual is provided with benefits under more than one defined benefit provision, the determination of whether the benefits provided to the individual under a particular defined benefit provision comply with the conditions in subsections (5) and (6) shall be made on the assumption that benefits provided to the individual under each other defined benefit provision (other than a provision that is not included in a registered pension plan) associated with the particular provision were provided under the particular provision. Associated Defined Benefit Provisions (9) For the purposes of subsection (8), a defined benefit provision is associated with a particular defined benefit provision if (a) the provisions are in the same pension plan, or (b) the provisions are in separate pension plans and (i) there is an employer who participates in both plans, (ii) an employer who participates in one of the plans does not deal at arm’s length with an employer who participates in the other plan, or (iii) there is an individual who is provided with benefits under both provisions and the individual, or a person with whom the individual does not deal at arm’s length, has the power to determine the benefits that are provided under the particular provision, unless it is unreasonable to expect the benefits under the particular provision to be coordinated with the benefits under the other pro