Income Tax Regulations — 8303
efits are excluded benefits: (f) where the formula for determining the amount of lifetime retirement benefits payable under the provision to the individual requires the calculation of an amount that is the product of a fixed rate and the duration of all or part of the individual’s pensionable service, benefits payable as a direct consequence of an increase in the value of the fixed rate at any time (in this paragraph referred to as the “time of increase”) after the pension credit year, other than benefits (i) provided as a consequence of a second or subsequent increase in the value of the fixed rate after the time that retirement benefits under the provision commenced to be paid to the individual, or (ii) that would not have become provided had the value of the fixed rate been increased to the amount determined by the formula A × (B / C) where A is the value of the fixed rate immediately before the time of the increase, B is the average wage for the calendar year that includes the time of the increase, and C is (A) if the value of the fixed rate was last increased or established in the calendar year that includes the time of the increase, the average wage for that year, or (B) otherwise, the average wage for the year immediately preceding the calendar year that includes the time of increase, (f.1) where the formula for determining the amount of lifetime retirement benefits payable under the provision to the individual includes a limit that is the product of the duration of the individual’s pensionable service and the lesser of a percentage of the individual’s remuneration and a fixed rate, and the value of the fixed rate is increased after the pension credit year to an amount equal to the defined benefit limit for the earlier of the year in which the increase occurs and the year in which retirement benefits under the provision commenced to be paid to the individual, the portion of the benefits payable as a direct consequence of the increase that would not have become provided had the value of the fixed rate been set at the defined benefit limit for the pension credit year, if (i) the value of the fixed rate was, immediately before the increase, equal to the defined benefit limit for the year in which the value of the fixed rate was last established, and (ii) where the year in which the value of the fixed rate was last established precedes the year immediately preceding the year in which the increase occurs, (A) the Minister has approved in writing the application of this paragraph in respect of the past service event, (B) there are more than nine active members (within the meaning assigned by paragraph 8306(4)(a)) under the provision, and (C) the plan is not a designated plan, (f.2) where the formula for determining the amount of lifetime retirement benefits payable under the provision to the individual includes a limit that is the product of the duration of the individual’s pensionable service and the lesser of a percentage of the individual’s remuneration and a fixed rate the value of which can reasonably be considered to be fixed each year as a portion of the defined benefit limit for that year, benefits payable as a direct consequence of an increase, after the pension credit year, in the value of the fixed rate to reflect the defined benefit limit for the year in which the increase occurs, if (i) except as otherwise expressly permitted by the Minister, it is reasonable to consider that, for years after 1989, the ratio of the fixed rate to the defined benefit limit has been, and will remain, constant, (ii) the benefits are not provided as a consequence of a second or subsequent increase in the value of the fixed rate after the time that retirement benefits under the provision commenced to be paid to the individual, (iii) the Minister has approved in writing the application of this paragraph in respect of the past service event, and (iv) the plan is not a designated plan, (g) where (i) the provision is a flat benefit provisi