Income Tax Regulations — 8301
8301 (1) For the purpose of subsection 248(1) of the Act, pension adjustment of an individual for a calendar year with respect to an employer means, subject to paragraphs 8308(4)(d) and (5)(c), the total of all amounts each of which is (a) the individual’s pension credit for the year with respect to the employer under a deferred profit sharing plan or under a benefit provision of a registered pension plan; (b) the individual’s pension credit for the year with respect to the employer under a foreign plan, determined under section 8308.1; or (c) the individual’s pension credit for the year with respect to the employer under a specified retirement arrangement, determined under section 8308.3. Pension Credit — Deferred Profit Sharing Plan (2) For the purposes of subsection (1) and Part LXXXV and subsection 147(5.1) of the Act, and subject to subsection 8304(2), an individual’s pension credit for a calendar year with respect to an employer under a deferred profit sharing plan is the amount determined by the formula A - B where A is the total of all amounts each of which is (a) a contribution made to the plan in the year by the employer with respect to the individual, or (b) the portion of an amount allocated in the year to the individual that is attributable to forfeited amounts under the plan or to earnings of the plan in respect of forfeited amounts, except to the extent that the portion (i) is included in determining the individual’s pension credit for the year with respect to any other employer who participates in the plan, or (ii) is paid to the individual in the year; and B is nil, unless the conditions in subsection (2.1) are satisfied, in which case it is the total referred to in paragraph (2.1)(b). Conditions Re — Description of B in Subsection (2) (2.1) The following are conditions for the purpose of the description of B in subsection (2): (a) the total of all amounts, each of which would be the individual’s pension credit for the calendar year with respect to the employer under a deferred profit sharing plan if the description of B in subsection (2) were read as “is nil”., is (i) equal to, or less than, 50% of the money purchase limit for the year, (ii) greater than 18% of the amount that would be the individual’s compensation from the employer for the year if the definition compensation in subsection 147.1(1) of the Act were read without reference to paragraph (b) of that definition, and (iii) equal to, or less than, 18% of the amount that would be the individual’s compensation from the employer for the preceding year if the definition compensation in subsection 147.1(1) of the Act were read without reference to paragraph (b) of that definition; and (b) the total of all amounts, each of which is an amount that is paid from the plan to the individual or the employer in the calendar year or in the first two months of the following year that can reasonably be considered to derive from an amount included in the value of A in subsection (2) with respect to the individual and the employer for the year, is greater than nil. Non-vested Termination from DPSP (3) For the purposes of subsection (1) and Part LXXXV and subsection 147(5.1) of the Act, where (a) an individual ceased in a calendar year after 1989 and before 1997 to be employed by an employer who participated in a deferred profit sharing plan for the benefit of the individual, (b) as a consequence of the termination of employment, the individual ceased in the year to have any rights to benefits (other than a right to a refund benefit) under the plan, (c) the individual was not entitled to benefits under the plan at the end of the year, or was entitled only to a refund benefit, and (d) no benefit has been paid under the plan with respect to the individual, other than a refund benefit, the individual’s pension credit under the plan for the year with respect to the employer is nil. Pension Credit — Money Purchase Provision (4) For the purposes of subsection (1) and Part LX