Income Tax Regulations — 8304
8304 (1) Where (a) an individual ceased, at any time in a calendar year, to have any rights to benefits under a defined benefit provision of a registered pension plan (in this subsection referred to as the “former provision”), (b) benefits became provided at that time to the individual under another defined benefit provision of a registered pension plan (in this subsection referred to as the “current provision”) in lieu of the benefits under the former provision, (c) the benefits that became provided at that time to the individual under the current provision in respect of the period in the year before that time are attributable to employment with the same employers as were the individual’s benefits in respect of that period under the former provision, (d) no amount was transferred in the year on behalf of the individual from the former provision to a registered retirement savings plan, a registered retirement income fund or a money purchase provision of a registered pension plan, and (e) no benefits became provided under the former provision to the individual in the year and after that time, each pension credit of the individual under the former provision for the year is nil. Replacement of Money Purchase Benefits (2) Where (a) an individual ceased, at any time in a calendar year, to have any rights to benefits under a money purchase provision of a registered pension plan or under a deferred profit sharing plan (in this subsection referred to as the “former provision”), (b) benefits became provided at that time to the individual under a defined benefit provision of a registered pension plan (in this subsection referred to as the “current provision”) in lieu of benefits under the former provision, (c) the benefits that became provided at that time to the individual under the current provision in respect of the period in the year before that time are attributable to employment with the same employers who made contributions under the former provision in respect of that period on behalf of the individual, (d) no amount was transferred in the year on behalf of the individual from the former provision to a registered retirement savings plan, a registered retirement income fund, a money purchase provision of a registered pension plan or a deferred profit sharing plan, (e) no contributions were made under the former provision by or on behalf of the individual, and no other amounts were allocated under the former provision to the individual, in the year and after that time, and (f) it is reasonable to consider that no excess would, if this subsection did not apply and if the year ended at that time, be determined under any of paragraphs 147(5.1)(a) to (c), 147.1(8)(a) and (b) and (9)(a) and (b) of the Act with respect to the individual for the year, the following rules apply: (g) each pension credit of the individual under the former provision for the year is nil, and (h) the amount, if any, of the individual’s qualifying transfers made in connection with the replacement of the individual’s benefits shall be determined under subsection 8303(6) without regard to the portion, if any, of amounts transferred from the former provision to the current provision that can reasonably be considered to relate to an amount that, but for paragraph (g), would have been included in determining the individual’s pension credit under the former provision for the year. Past Service Benefits in Year of Past Service Event (3) Subject to subsection (4), where, as a consequence of a past service event that occurs at a particular time in a calendar year, benefits (in this subsection and subsection (4) referred to as “past service benefits”) become provided to an individual under a defined benefit provision of a registered pension plan in respect of a period in the year and before the particular time that, immediately before the past service event, was not pensionable service of the individual under the provision, the following rules apply, except to the extent