Income Tax Regulations (C.R.C., c. 945)

Regulations are current to 2016-05-12 and last amended on 2016-02-26. Previous Versions

 [Repealed, SOR/2000-62, s. 5]

PART LXXXIIIPension Adjustments, Past Service Pension Adjustments, Pension Adjustment Reversals and Prescribed Amounts

[SOR/96-311, s. 5; SOR/99-9, s. 3]

Interpretation

  •  (1) In this Part,

    certifiable past service event

    certifiable past service event, with respect to an individual, means a past service event that is required, by reason of subsection 147.1(10) of the Act, to be disregarded, in whole or in part, in determining the benefits to be paid under a registered pension plan with respect to the individual until a certification of the Minister in respect of the event has been obtained; (fait à attester)

    complete period of reduced services

    complete period of reduced services of an individual means a period of reduced services of the individual that is not part of a longer period of reduced services of the individual; (période complète de services réduits)

    designated savings arrangement

    designated savings arrangement of an individual means a RRIF or RRSP under which the individual is the annuitant, or the individual’s account under a money purchase provision of a registered pension plan; (mécanisme d’épargne désigné)

    excluded contribution

    excluded contribution to a registered pension plan means an amount that is transferred to the plan in accordance with any of subsections 146(16), 146.3(14.1), 147(19), 147.3(1) to (4) and 147.3(5) to (7) of the Act; (cotisation exclue)

    flat benefit provision

    flat benefit provision of a pension plan means a defined benefit provision of the plan under which the amount of lifetime retirement benefits provided to each member is based on the aggregate of all amounts each of which is the product of a fixed rate and either the duration of service of the member or the number of units of output of the member, and, for the purposes of this definition, where

    • (a) the amount of lifetime retirement benefits provided under a defined benefit provision to each member is subject to a limit based on the remuneration received by the member, and

    • (b) the limit may reasonably be considered to be included to ensure that the amount of lifetime retirement benefits provided to each member does not exceed the maximum amount of such benefits that may be provided by a registered pension plan,

    the limit shall be disregarded for the purpose of determining whether the provision is a flat benefit provision; (disposition à prestations forfaitaires)

    individual pension plan

    individual pension plan, in respect of a calendar year, means a registered pension plan that contains a defined benefit provision if, at any time in the year or a preceding year, the plan

    • (a) has fewer than four members and at least one of them is related to a participating employer in the plan, or

    • (b) is a designated plan and it is reasonable to conclude that the rights of one or more members to receive benefits under the plan exist primarily to avoid the application of paragraph (a); (régime de retraite individuel)

    member

    member, in relation to a deferred profit sharing plan or a benefit provision of a registered pension plan, means an individual who has a right (either immediate or in the future and either absolute or contingent) to receive benefits under the plan or the provision, as the case may be, other than an individual who has such a right only because of the participation of another individual in the plan or under the provision, as the case may be; (participant)

    PA offset

    PA offset for a calendar year means

    • (a) for years before 1997, $1,000, and

    • (b) for years after 1996, $600; (montant de réduction du FE)

    past service event

    past service event means any transaction, event or circumstance that occurs after 1989 and as a consequence of which

    • (a) retirement benefits become provided to an individual under a defined benefit provision of a pension plan in respect of a period before the time the transaction, event or circumstance occurs,

    • (b) there is a change to the way in which retirement benefits provided to an individual under a defined benefit provision of a pension plan in respect of a period before the time the transaction, event or circumstance occurs are determined, including a change that is applicable only in specified circumstances, or

    • (c) there is a change in the value of an indexing or other automatic adjustment that enters into the determination of the amount of an individual’s retirement benefits under a defined benefit provision of a pension plan in respect of a period before the time the value of the adjustment changes; (fait lié aux services passés)

    period of reduced services

    period of reduced services of an individual means, in connection with a benefit provision of a registered pension plan, a period that consists of one or more periods each of which is

    • (a) an eligible period of reduced pay or temporary absence of the individual with respect to an employer who participates under the provision, or

    • (b) a period of disability of the individual; (période de services réduits)

    refund benefit

    refund benefit means

    • (a) with respect to an individual and a benefit provision of a pension plan, a return of contributions made by the individual under the provision, and

    • (b) with respect to an individual and a deferred profit sharing plan, a return of contributions made by the individual to the plan,

    and includes any interest (computed at a rate not exceeding a reasonable rate) payable in respect of those contributions. (prestation de remboursement)

    resident compensation

    resident compensation of an individual from an employer for a calendar year means 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 paragraphs (b) and (c) of that definition. (rétribution de résident)

  • (1.1) The Minister may waive in writing the application of the definition individual pension plan in subsection (1) if is just and equitable to do so having regard to all the circumstances.

  • (2) The definition past service event in subsection (1) is applicable for the purposes of subsection 147.1(1) of the Act.

  • (3) All words and expressions used in this Part that are defined in sections 147 or 147.1 of the Act or in Part LXXXV have the meanings assigned in those provisions unless a definition in this Part is applicable.

  • (4) For the purposes of this Part, an officer who receives remuneration for holding an office shall, for any period that the officer holds the office, be deemed to render services to, and to be in the service of, the person from whom the officer receives the remuneration.

  • (5) For the purposes of this Part (other than the definition member in subsection (1)), where an individual has received an interest in an annuity contract in full or partial satisfaction of the individual’s entitlement to benefits under a defined benefit provision of a pension plan, any rights of the individual under the contract are deemed to be rights under the defined benefit provision.

  • (6) For the purposes of this Part and subsection 147.1(10) of the Act, and subject to subsection 8308(1), the following rules apply in respect of the determination of the benefits that are provided to an individual under a defined benefit provision of a pension plan at a particular time:

    • (a) where a term of the defined benefit provision, or an amendment to a term of the provision, is not applicable with respect to the individual before a specified date, the term shall be considered to have been added to the provision, or the amendment shall be considered to have been made to the term, on the specified date;

    • (b) where an alteration to the benefits provided to the individual is conditional on the requirements of subsection 147.1(10) of the Act being met, those requirements shall be assumed to have been met;

    • (c) benefits that will be reinstated if the individual returns to employment with an employer who participates in the plan shall be considered not to be provided until the individual returns to employment; and

    • (d) where benefits under the provision depend on the individual’s job category or other circumstances, the only benefits provided to the individual are the benefits that are relevant to the individual’s circumstances at the particular time.

  • (7) For the purposes of subsections 8301(3) and (8), paragraph 8302(3)(c), subsections 8302(5) and 8304(5) and (5.1), paragraphs 8304.1(10)(c) and (11)(c), subparagraph 8306(4)(a)(ii) and subsection 8308(3), the benefits to which an individual is entitled at any time under a deferred profit sharing plan or pension plan include benefits to which the individual has only a contingent right because a condition for the vesting of the benefits has not been satisfied.

  • (8) For the purposes of this Part, such portion of an amount allocated to an individual at any time under a money purchase provision of a registered pension plan as

    • (a) is attributable to

      • (i) forfeited amounts under the provision or earnings of the plan that are reasonably attributable to those amounts,

      • (ii) a surplus under the provision,

      • (iii) property transferred to the provision in respect of the actuarial surplus under a defined benefit provision of the plan or another registered pension plan, or

      • (iv) property transferred to the provision in respect of the surplus under another money purchase provision of the plan or under a money purchase provision of another registered pension plan, and

    • (b) can reasonably be considered to be allocated in lieu of a contribution that would otherwise have been made under the provision by an employer in respect of the individual

    shall be deemed to be a contribution made under the provision by the employer with respect to the individual at that time and not to be an amount attributable to anything referred to in paragraph (a).

  • (9) For the purposes of this Part and Part LXXXV, where property held in connection with a particular benefit provision of a pension plan is made available at any time to pay benefits under another benefit provision of the plan, the property is deemed to be transferred at that time from the particular benefit provision to the other benefit provision.

  • (10) For the purposes of this Part and Parts LXXXIV and LXXXV, and subject to subsection (11), an individual is considered to have terminated from a deferred profit sharing plan or a benefit provision of a registered pension plan when the individual has ceased to be a member in relation to the plan or the provision, as the case may be.

  • (11) Where the benefits provided with respect to an individual under a particular defined benefit provision of a registered pension plan depend on benefits provided with respect to the individual under one or more other defined benefit provisions of registered pension plans (each of the particular provision and the other provisions being referred to in this subsection as a “related provision”), for the purposes of this Part and Parts LXXXIV and LXXXV,

    • (a) if the individual ceases, at any particular time after 1996, to be a member in relation to a specific related provision and is, at the particular time, a member in relation to another related provision, the individual is deemed

      • (i) not to terminate from the specific provision at the particular time, and

      • (ii) to terminate from the specific provision at the earliest subsequent time when the individual is no longer a member in relation to any of the related provisions;

    • (b) if the conditions in subsection 8304.1(14) (read without reference to the words “after 1996 and”) are not satisfied with respect to the individual’s termination from a related provision, the conditions in that subsection are deemed not to be satisfied with respect to the individual’s termination from each of the other related provisions; and

    • (c) a specified distribution (as defined in subsection 8304.1(8)) made at any particular time in respect of the individual and a related provision is deemed, for the purpose of subsection 8304.1(5), also to be a specified distribution made at the particular time in respect of the individual and each of the other related provisions, except to the extent that the Minister has waived the application of this paragraph with respect to the distribution.

  • (12) For the purposes of this Part, where

    • (a) all or any part of the amounts payable to an individual under a deferred profit sharing plan are paid by a trustee under the plan to a licensed annuities provider to purchase for the individual an annuity described in subparagraph 147(2)(k)(vi) of the Act, or

    • (b) an individual has acquired, in full or partial satisfaction of the individual’s entitlement to benefits under a benefit provision of a registered pension plan (other than benefits to which the individual was entitled only because of the participation of another individual under the provision), an interest in an annuity contract (other than as a consequence of a transfer of property from the provision to a registered retirement savings plan or a registered retirement income fund under which the individual is the annuitant),

    the individual is deemed to continue, from the time of the payment or acquisition, as the case may be, until the individual’s death, to be a member in relation to the plan or provision, as the case may be.

  • (13) For the purposes of this Part and Part LXXXV, where a benefit is to be provided, or may be provided, to an individual under a defined benefit provision of a registered pension plan as a consequence of an allocation that is to be made, or may be made, to the individual of all or part of an actuarial surplus under the provision, the individual is considered not to have any right to receive the benefit under the provision until the time at which the benefit becomes provided under the provision.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/92-51, s. 7;
  • SOR/95-64, s. 1;
  • SOR/99-9, s. 4;
  • SOR/2003-328, s. 5;
  • SOR/2005-264, s. 16;
  • SOR/2007-116, s. 11(E);
  • 2011, c. 24, s. 90.
 
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