Income Tax Regulations — 8503
ember (including, for greater certainty, benefits provided with respect to the individual) is not increased as a consequence of the individual becoming so entitled to benefits, and (ii) the benefits provided under the provision to the member are not, at any time, adjusted to replace, in whole or in part, the portion of the member’s benefits to which the individual has become entitled. Additional Conditions (4) For the purposes of section 8501, the following conditions are applicable in respect of each defined benefit provision of a pension plan: Member Contributions (a) where members are required or permitted to make contributions under the provision, (i) the aggregate amount of current service contributions to be made by a member in respect of a calendar year after 1990, no part of which is a period of disability or an eligible period of reduced pay or temporary absence of the member, does not exceed the lesser of (A) 9 per cent of the aggregate of all amounts each of which is the member’s compensation for the year from an employer who participates in the plan in the year for the benefit of the member, and (B) the aggregate of $1,000 and 70 per cent of the aggregate of all amounts each of which is the amount that would be the member’s pension credit (as determined under Part LXXXIII) for the year under the provision with respect to an employer if section 8302 were read without reference to paragraphs (2)(b) and (3)(g) thereof, (ii) the method for determining current service contributions to be made by a member in respect of a calendar year that includes a period of disability or an eligible period of reduced pay or temporary absence of the member (referred to in this subparagraph as a “period of reduced services”) is consistent with that used for determining contributions in respect of years described in subparagraph (i), except that the member may be permitted or required to make, in respect of a period of reduced services, current service contributions not exceeding the amount reasonably necessary to fund the member’s benefits in respect of the period of reduced services, and (iii) the aggregate amount of contributions to be made by a member in connection with benefits that, as a consequence of a transaction, event or circumstance occurring at a particular time, become provided under the provision in respect of periods before that time does not exceed the amount reasonably necessary to fund such benefits; Pre-payment of Member Contributions (b) the contributions that are made under the provision by a member in respect of a calendar year are not paid before the year; Reduction in Benefits and Return of Contributions (c) 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, (i) the plan to be amended at any time to reduce the benefits provided under the provision with respect to a member, and (ii) a contribution that is made under the provision by a member or an employer to be returned to the person who made the contribution, which stipulation may provide that an amendment to the plan, or 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; Undue Deferral of Payment (d) each single amount that is payable after the death of a member is paid as soon as is practicable after the member’s death (or, in the case of a single amount permitted by reason of paragraph (2)(j), after all other benefits have been paid); Evidence of Disability (e) where additional lifetime retirement benefits are provided under the provision to a member because the member is totally and permanently disabled, the additional benefits are not paid before the plan administrator has received from a medical doctor or a nurse practitioner who is licensed to practise under the laws of a province or of the place where the member res