Vol. 132, No. 45— November 7, 1998

Regulations Amending the Humanitarian Designated Classes Regulations

Statutory Authority

Immigration Act

Sponsoring Department

Department of Citizenship and Immigration

REGULATORY IMPACT
ANALYSIS STATEMENT

Description

Canada's immigration program is comprised of the three components: the economic stream, family immigration and the humanitarian component. Humanitarian immigration comprises Convention refugees selected abroad, those granted refugee status in Canada and several classes of immigrants whose admission is considered to be in accordance with Canada's humanitarian tradition. The creation of these "designated" classes is authorized by section 114 of the Immigration Act and they have been an integral part of Canada's immigration program since shortly after the current Act came into force in 1978. Until May of 1997, designated classes were responsive in nature and usually limited in application to one world area or to a particular refugee or refugee-like movement. An example of such a class was the Indochinese Designated Class created in response to the "boat people" movement of the late 1970s and early 1980s.

While Indochinese Designated Class and other special measures programs were successful, it was recognized that this reactive, narrowly focused approach did not meet the needs of a rapidly changing world. The necessity of drafting and implementing a separate set of designated class regulations, geared to the special circumstances of each refugee crisis, inhibited timely response by Canada to the plight of those in need. Similarly, when such crises abated, individuals who were no longer in need continued to be admitted to Canada, while Citizenship and Immigration Canada worked through the slow process of rescinding the regulations.

To address these shortcomings in the existing approach to humanitarian immigration, the Government created the Humanitarian Designated Classes Regulations (HDC Regulations). The HDC Regulations establish two classes of immigrants: the Country of Asylum Class and the Source Country Class. These classes are based on the existence of conditions which meet (or fail to meet) certain generically defined criteria relating to the level of threat to human rights and safety within a country.

The Country of Asylum Class is open to persons outside their country of citizenship or habitual residence who are seriously and personally affected by civil war or armed conflict or who are suffering from massive violations of human rights and for whom there is no possibility of a durable solution within a reasonable period of time.

In order to be eligible for the Source Country Class, persons must be residing in their country of citizenship or habitual residence. They must also be either seriously and personally affected by civil war or armed conflict; or must be suffering serious deprivation of the right of freedom of expression, the right to dissent or to engage in trade union activity and have been detained or imprisoned as a consequence of this deprivation. Persons are also eligible for the Source Country Class who, despite not having left their country of residence (and thus not meeting the Convention refugee definition), nevertheless have a well founded fear of persecution for political reasons or for reasons of race, religion, nationality or membership in a particular social group and for whom there is no possibility of a durable solution within a reasonable period of time. Eligibility for the Source Country Class is restricted to citizens or habitual residents of countries listed in the Schedule, to the HDC Regulations. In order for a country to be included in the Source Country Schedule, not only must there exist conditions within the country which produce members of the Source Country Class, but Canada must also be able to process applicants from within the country. The safety of embassy staff is taken into consideration when a decision is made to include a country in the schedule.

The Humanitarian Designated Classes Regulations contain a requirement for an annual review of the Source Country Schedule to ensure that the list remains current with present needs. The Regulations also include a "sunset" clause to provide for a regular review of their effectiveness. The HDC Regulations will expire on January 1, 1999, unless they are amended.

Purpose of the Amendments

The purpose of these amendments is to extend the "sunset" date to December 31, 1999, and to bring the Source Country Schedule up to date considering present world conditions. No new countries are being added to the list for 1999. Cambodia has been removed from the Source Country list since it no longer meets all the criteria for inclusion, namely the requirement that general conditions in the country be such that applicants would likely meet the definition of the class. The amended Schedule now includes Bosnia-Herzegovina, Colombia, Croatia, El Salvador, Guatemala, Liberia and Sudan. The changes follow a recently completed review of conditions in more than 30 countries. While conflict and human rights violations exist in a number of other countries at the present time, only the seven countries on the Source Country Schedule meet all of the requirements for inclusion in the Source Country Class.

Alternatives

The alternatives to extending the Humanitarian Designated Classes Regulations are to resume creating separate designated class regulations aimed exclusively at a specific crisis, or to respond to future refugee crises using measures that are purely administrative in nature. A return to the creation of narrowly defined, situation-specific designated classes is rejected for the same reasons its continuation was rejected in 1997. The creation of such classes is a time-consuming procedure which precludes the kind of flexibility that is needed in today's turbulent world. Moreover, in the past, it proved difficult to eliminate such classes when the need for resettlement had passed.

Relying on administrative measures to deal with humanitarian crises would greatly reduce our capacity to respond to such situations. Citizenship and Immigration Canada (CIC) would be effectively limited to helping those individuals who can meet the restrictive definition of a "Convention refugee".

Benefits and Costs

It was anticipated that the number of humanitarian cases which could be offered resettlement in Canada would increase as the result of the creation of the new humanitarian designated classes. These have, in fact, increased quite dramatically. In 1996 (the year before the new classes came into effect), 176 persons were landed under the old country-specific designated class structure. In the first nine months of 1998, 709 persons were landed under the HDC provisions.

While the increase in the number of landings underscores the value of the new generic approach, it must be said that these have been weighted heavily toward the Source Country Class. Of the 709 persons landed during the first year of the HDC Regulations, 604 were admitted under the Source Country Class and only 105 under the Country of Asylum Class provisions. Although a full review of the impact of the HDC Regulations will not take place until the year 2000, preliminary indications are that the difference in utilization between the two classes may be explained by the requirement that members of the Country of Asylum Class must be privately sponsored by individuals or groups in Canada.

The Humanitarian Designated Classes Regulations have not had a significant impact on resources devoted overseas to securing the levels set aside for humanitarian immigration. In terms of the resources needed to process cases, the HDC regulations do not differ greatly from the old country-specific designated classes they replaced. HDC immigrants do not form a separate processing target for posts; rather they are, along with Convention Refugees, simply part of the humanitarian immigration "mix". No resources have been separately allocated for the processing of Humanitarian Designated Class immigrants.

There is no information indicating that settlement costs have increased as the result of the establishment of the Humanitarian Designated Classes. CIC settlement costs associated with government-assisted refugees and administered through the Resettlement Assistance Program (RAP) are budgeted on the basis of a single planning figure for the entire humanitarian immigration component. This includes both Convention Refugees seeking resettlement and HDC members. There is no separate allocation for each category and there is no data to suggest that HDC members are either more or less costly in terms of the call they make upon RAP support funding.

Consultation

Non-governmental refugee advocacy organizations were requested to submit the names of countries they wished to have considered as part of the Source Country Class review process. Officials of the Department of Foreign Affairs and International Trade were consulted concerning the conditions in the countries considered for inclusion in the Source Country Schedule. The original Humanitarian Designated Class Regulations were developed after broad consultations with advocacy groups. Following their publication in the Canada Gazette, Part I, in January of 1997, several organizations commented that the HDC Regulations were a "welcome step forward" in refugee protection and addressed many of the concerns raised by refugee advocacy groups. The main concerns expressed by these groups were addressed in the Regulations which came into force on May 1, 1997.

Compliance and Enforcement

The submission of an application for permanent residence as a member of either of the Humanitarian Designated Classes is a discretionary action on the part of the applicant. Visa officers ensure that applicants comply with the definition of a member of the class in which admission is being sought (either the Source Country Class or Country of Asylum Class) that is contained in the Humanitarian Designated Classes Regulations. Visa officers also assess applicants against the requirements for admission as members of the class in question. The applicant is refused a visa if the applicant or any accompanying dependent fails to meet the class definition or any requirement for admission with which members of the class must comply or any other requirement imposed by the Immigration Act or Immigration Regulations.

Contact

Rick Herringer, Director, Refugee Resettlement, Citizenship and Immigration Canada, Jean Edmonds Tower South, 17th Floor, 365 Laurier Avenue W, Ottawa, Ontario K1A IL1, (613) 957-5854 (Telephone), (613) 957-5836 (Facsimile).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to subsections 114(1) (see footnote a) and (10) (see footnote b) of the Immigration Act, proposes to make the annexed Regulations Amending the Humanitarian Designated Classes Regulations.

Any interested person may make representations concerning the proposed Regulations within 15 days after the date of publication of this notice. All such representations must be addressed to the Director, Refugee Resettlement, Refugees Branch, Citizenship and Immigration Canada, Jean Edmonds Tower South, 17th Floor, 365 Laurier Avenue W, Ottawa, Ontario K1A 1L1, and cite the Canada Gazette, Part I, and the date of this notice.

October 29, 1998

MARC O'SULLIVAN
Acting Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE HUMANITARIAN DESIGNATED CLASSES REGULATIONS

AMENDMENTS

1. Section 7 (see footnote 1) of the Humanitarian Designated Classes Regulations (see footnote 2) is replaced by the following:

7. These Regulations cease to have effect on December 31, 1999.

2. The schedule to the Regulations is replaced by the following:

SCHEDULE
(Section 1)

SOURCE COUNTRIES

Bosnia-Herzegovina

Columbia

Croatia

El Salvador

Guatemala

Liberia

Sudan

COMING INTO FORCE

3. These Regulations come into force on January 1, 1999.

[45-1-o]

Regulations Amending the Income Tax Regulations

Statutory Authority

Income Tax Act

Sponsoring Department

Department of Finance

REGULATORY IMPACT
ANALYSIS STATEMENT

Description

Part LXXXIII of the Income Tax Regulations provides rules for calculating pension adjustments (PAs), past service pension adjustments (PSPAs) and other prescribed amounts, which reduce an individual's RRSP deduction room. The amounts are a measure of the benefits provided to an individual under registered pension plans (RPPs), deferred profit sharing plans (DPSPs) and certain unregistered retirement arrangements. Part LXXXIV sets out the reporting requirements for RPPs, DPSPs and certain unregistered retirement arrangements. Part LXXXV sets out conditions that must be satisfied in order for a pension plan to be registered under the Income Tax Act.

Most of the amendments to Parts LXXXIII to LXXXV relate to retirement savings measures announced in the 1995, 1996 and 1997 federal budgets. The remaining amendments are technical refinements to the existing regulatory framework and are made in response to specific concerns raised by pension plan administrators, pension consultants and Revenue Canada. For the most part, these technical changes are relieving in nature.

The amendments to Parts LXXXIII and LXXXIV deal primarily with the introduction of the pension adjustment reversal (PAR) and the associated reduction in the PA offset from $1,000 to $600. PAR restores RRSP deduction room for individuals who receive termination benefits from an RPP or DPSP that are less than the RRSP room given up over the years because of their participation in the RPP or DPSP. The lower PA offset reduces the annual RRSP deduction room of members of defined benefit RPPs by $400. These amendments, which relate to retirement savings measures announced in the 1997 federal budget, were released in draft form in June 1998. Several changes were made to the draft amendments as a result of consultations with the pension industry. These were announced in October 1998.

Most of the amendments to Part LXXXV relate to retirement savings measures that were announced in the 1995 and 1996 federal budgets. Some of these amendments were released in draft form in July 1995. Others were released in draft form in February 1997. The draft amendments were also incorporated into the June 1998 release. The most significant amendments: reduce, from 71 to 69, the age at which an individual's pension must begin under an RPP; defer until 2005 the indexing of the $1,722 defined benefit limit; and allow an individual to transfer a single amount from a defined benefit RPP to a registered retirement income fund after turning 72 years of age.

Alternatives

Most of these amendments implement measures relating to retirement savings announced in the 1995, 1996 and 1997 federal budgets. The remaining amendments are minor modifications to the existing regulatory framework. Therefore, no alternatives were considered.

Benefits and Costs

The amendments relating to the deferral of the indexing of the RPP defined benefit limit and the reduction in pension commencement age will contribute to the savings identified in the 1995 and 1996 budget documents. The remaining amendments will not impact, or will have minimal impact, on government revenues. The costs of initiating PAR will be offset by the cost savings achieved by reducing the PA offset from $1,000 to $600.

Consultation

These amendments were developed in consultation with Revenue Canada, pension plan administrators and pension consultants. These amendments were released in draft form, most recently on June 26, 1998, to give interested persons an opportunity to comment.

Compliance and Enforcement

The Act provides the necessary compliance mechanisms for these regulations. The Act provides for the revocation of the registration of a pension plan where the plan fails to comply with the requirements for registration. It also provides for penalties and revocation where an information return associated with a DPSP or RPP is not filed as and when required by regulation. Finally, it allows the Minister of National Revenue to conduct audits and to assess and reassess tax payable, interest and penalties.

Contact

Catherine Cloutier, Tax Legislation Division, Department of Finance, L'Esplanade Laurier, 140 O'Connor Street, Ottawa, Ontario K1A 0G5, (613) 996-0598.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to subsection 147.1(18) (see footnote c) and section 221 (see footnote d) of the Income Tax Act (see footnote e), proposes to make the annexed Regulations Amending the Income Tax Regulations.

Any interested person may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. All such representations must be addressed to Catherine Cloutier, Tax Legislation Division, Department of Finance, L'Esplanade Laurier, 140 O'Connor Street, Ottawa, Ontario K1A 0G5, (613) 996-0598, and cite the Canada Gazette, Part I, and the date of this notice.

October 30, 1998

MARC O'SULLIVAN
Acting Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE INCOME TAX REGULATIONS

1. (1) Subsection 4900(3) of the Income Tax Regulations (see footnote 3) is replaced by the following:

(3) For the purpose of paragraph (i) of the definition "qualified investment" in section 204 of the Act, a contract with a licensed annuities provider for an annuity payable to an employee who is a beneficiary under a deferred profit sharing plan beginning not later than the end of the year in which the employee attains 69 years of age, the guaranteed term of which, if any, does not exceed 15 years, is prescribed as a qualified investment for a trust governed by such a plan or revoked plan.

(2) Subsection (1) applies to annuity contracts acquired after 1996, except that

(a) it does not apply to a contract where the annuitant attained 70 years of age before 1997; and

(b) in applying subsection 4900(3) of the Regulations, as enacted by subsection (1), to a contract where the annuitant attained 69 years of age in 1996, the reference in that subsection to "69 years of age" shall be read as a reference to "70 years of age".

2. (1) Subparagraph 6804(6)(c)(ii) of the Regulations is replaced by the following:

(2) Subsection (1) applies after 1995.

3. (1) The heading of Part LXXXIII of the Regulations is replaced by the following:

PENSION ADJUSTMENTS, PAST SERVICE PENSION ADJUSTMENTS, PENSION ADJUSTMENT REVERSALS AND PRESCRIBED AMOUNTS

(2) Subsection (1) applies after 1996.

4. (1) Subsection 8300(1) of the Regulations is amended by adding the following in alphabetical order:

"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" for a calendar year means

"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)

(2) Subsection 8300(5) of the Regulations is replaced by the following:

(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.

(3) Subsection 8300(7) of the Regulations is replaced by the following:

(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.

(4) Section 8300 of the Regulations is amended by adding the following after subsection (8):

(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

(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.

(5) Subsections (1) to (4) apply after 1989.

5. (1) Paragraph 8301(3)(a) of the Regulations is replaced by the following:

(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,

(2) Subsection 8301(6) of the Regulations is replaced by the following:

(6) Subject to subsections (7), (8) and (10) and sections 8304 and 8308, for the purposes of this Part and Part LXXXV and subsection 147.1(9) of the Act, an individual's pension credit for a calendar year with respect to an employer under a defined benefit provision of a particular registered pension plan (other than a plan that is, in the year, a specified multi-employer plan) is

(a) if the year is after 1989, the amount determined by the formula

A - B

where

A is 9 times the individual's benefit entitlement under the provision with respect to the employer and the year, and

B is the amount, if any, by which the PA offset for the year exceeds the total of all amounts each of which is the value of B determined under this paragraph for the purpose of computing the individual's pension credit for the year

(b) if the year is before 1990, nil.

(3) Paragraph 8301(7)(b) of the Regulations is replaced by the following:

(b) the description of B in paragraph (6)(a) shall be read as

"B is the amount determined by the formula

(C × D) - E

where

C is the PA offset for the year,

D is

E is the total of all amounts each of which is the value of B determined under this paragraph for the purpose of computing the individual's pension credit for the year with respect to the employer under any other defined benefit provision of the plan; and";

(4) Paragraph 8301(8)(a) of the Regulations is replaced by the following:

(a) an individual ceased in a calendar year after 1989 and before 1997 to be employed by an employer who participated in a registered pension plan for the benefit of the individual,

(5) The description of C in subparagraph 8301(10)(e)(ii) of the Regulations is replaced by the following:

C is the amount that would be the individual's pension credit for 1989 with respect to the employer under the defined benefit provision if subsection (6) were read without reference to the words "if the year is after 1989" in paragraph (6)(a) and without reference to paragraph (6)(b).

(6) Subsections (1) to (5) apply after 1989.

6. (1) The portion of subsection 8303(2) of the Regulations before paragraph (a) is replaced by the following:

(2) For the purposes of this Part, the accumulated PSPA of an individual for a calendar year with respect to an employer, determined as of any time, is the total of all amounts each of which is the individual's provisional past service pension adjustment (in this Part referred to as "provisional PSPA") with respect to the employer that is associated with

(2) The formula in subsection 8303(3) of the Regulations is replaced by the following:

A - B - C + D

(3) Subsection 8303(3) of the Regulations is amended by striking out the word "and" at the end of the description of B, by adding the word "and" at the end of the description of C and by adding the following after the description of C:

D is the total of all amounts each of which is an excess money purchase transfer in relation to the individual and the past service event that is not included in determining any other provisional PSPA of the individual that is associated with the past service event.

(4) Subsections 8303(6) and (7) of the Regulations are replaced by the following:

(6) For the purposes of subsections (3) and 8304(5) and (7), and subject to subsection (6.1), the amount of an individual's qualifying transfers made in connection with a past service event is the total of all amounts each of which is

(a) the portion of an amount transferred to a registered pension plan

that is transferred to fund benefits provided to the individual as a consequence of the past service event; or

(b) the amount of any property held in connection with a benefit provision of a registered pension plan that is made available to fund benefits provided to the individual under another benefit provision of the plan as a consequence of the past service event, where the transaction by which the property is made so available is such that, if the benefit provisions were in separate registered pension plans, the transaction would constitute a transfer of property from one plan to the other in accordance with any of subsections 147.3(2), (5) and (7) of the Act.

Exclusion for Pre-1990 Benefits

(6.1) The amount of an individual's qualifying transfers made in connection with a past service event shall be determined under subsection (6) without regard to the portion, if any, of amounts transferred or property made available, as the case may be, that can reasonably be considered to have been transferred or made available to fund benefits provided in respect of periods before 1990.

Deemed Payment

(7) Where

(a) an individual has given an irrevocable direction that

in the event that the Minister issues a certification for the purposes of subsection 147.1(10) of the Act with respect to the individual and to benefits provided under a defined benefit provision of the plan as a consequence of a past service event, and

(b) the amount is to be paid or the property is to be made available, as the case may be,

the amount or property, as the case may be, is deemed, for the purpose of subsection (6), to have been paid or made available, as the case may be, at the time the direction was given.

Excess Money Purchase Transfer

(7.1) Where lifetime retirement benefits have, as a consequence of a past service event, become provided to an individual under a defined benefit provision of a registered pension plan (other than a specified multi-employer plan) in respect of a period (in this subsection referred to as the "past service period") that

(a) was previously pensionable service of the individual under a particular defined benefit provision of a registered pension plan (other than a specified multi-employer plan),

(b) ceased to be pensionable service of the individual under the particular provision as a result of the payment of a single amount, all or part of which was transferred on behalf of the individual from the particular provision to a registered retirement savings plan, a registered retirement income fund, a money purchase provision of a registered pension plan or a defined benefit provision of a registered pension plan that was, at the time of the transfer, a specified multi-employer plan,

(c) has not, at any time after the payment of the single amount and before the past service event, been pensionable service of the individual under any defined benefit provision of a registered pension plan (other than a specified multi-employer plan), and

(d) is not, for the purpose of subsection 8304(5), a qualifying past service period in relation to the individual and the past service event,

the amount determined by the formula

A - B

is, for the purpose of the description of D in subsection (3), an excess money purchase transfer in relation to the individual and the past service event, where

A is the portion of the amount transferred, as described in paragraph (b), that can reasonably be considered to be attributable to benefits in respect of the portion of the past service period that is after 1989, and

B is the total of all amounts each of which is the portion of a pension credit, or the grossed-up amount of a provisional PSPA, of the individual that can reasonably be considered to be attributable to benefits previously provided under the particular provision in respect of the past service period.

(5) Subsection (1) applies after 1995.

(6) Subsections (2) and (3) and subsection 8303(7.1) of the Regulations, as enacted by subsection (4), apply with respect to past service events that occur after 1997.

(7) Subsections 8303(6) and (7) of the Regulations, as enacted by subsection (4), apply

(a) to the determination of an individual's qualifying transfers that occur after June 25, 1998; and

(b) where approved by the Minister of National Revenue, to the determination of an individual's qualifying transfers that occurred before June 26, 1998.

(8) Subsection 8303(6.1) of the Regulations, as enacted by subsection (4), applies to the determination of an individual's qualifying transfers that occur after June 25, 1998.

7. (1) Subsection 8304(4) of the Regulations is amended by

(a) adding the word "or" at the end of paragraph (a);

(b) striking out the reference to "(in this subsection referred to as the "past service period")" in paragraph (b);

(c) striking out the word "or" at the end of paragraph (b); and

(d) repealing paragraph (c).

(2) Subsections 8304(5) and (6) of the Regulations are replaced by the following:

(5) Where

(a) lifetime retirement benefits have, as a consequence of a past service event, become provided to an individual under a defined benefit provision of a registered pension plan in respect of one or more qualifying past service periods in relation to the individual and the past service event, and

(b) the benefits are considered to be attributable to employment of the individual with a single employer,

the provisional PSPA of the individual with respect to the employer that is associated with the past service event is the amount determined by the formula

A + B + C - D

where

A is the provisional PSPA that would be determined if

(a) this subsection did not apply,

(b) all former benefits in relation to the individual and the past service event had ceased to be provided at the time the past service event occurred,

(c) all former benefits in relation to the individual and the past service event were considered to be attributable to employment of the individual with the employer, and

(d) the value of C in subsection 8303(3) were nil;

B is the total of all amounts each of which is a non-vested PA amount in respect of the individual and the past service event;

C is the total of all amounts each of which is a money purchase transfer in relation to the individual and the past service event; and

D is the amount of the individual's qualifying transfers made in connection with the past service event.

Definitions for Subsection (5)

(5.1) For the purpose of subsection (5), where

(a) lifetime retirement benefits (in this subsection referred to as "past service benefits") have, as a consequence of a past service event occurring at a particular time, become provided to an individual under a defined benefit provision of a registered pension plan in respect of a period that

(b) either

(c) lifetime retirement benefits to which the individual is or was entitled under the former provision in respect of the period have not been taken into account under subsection (5) as former benefits in determining a provisional PSPA of the individual that is associated with any other past service event,

the following rules apply:

(d) the period is a qualifying past service period in relation to the individual and the past service event,

(e) lifetime retirement benefits to which the individual is or was entitled under the former provision in respect of the period are former benefits in relation to the individual and the past service event,

(f) where subsection 8301(8) has applied in respect of the determination of a pension credit of the individual under the former provision with respect to an employer for a year that includes any part of the period, the amount determined by the formula

A - B

is a non-vested PA amount in respect of the individual and the past service event, where

A is the amount that would have been the individual's pension credit under the former provision for the year with respect to the employer if subsection 8301(8) had not applied, and

B is the individual's pension credit under the former provision for the year with respect to the employer, and

(g) the amount determined by the formula

A - B

is a money purchase transfer in relation to the individual and the past service event, where

A is the total of all amounts each of which is

to the extent that the amount can reasonably be considered to be attributable to benefits in respect of the portion of the period that is after 1989, and

B is the total of all amounts each of which is, in respect of an employer with respect to which a provisional PSPA of the individual that is associated with the past service event is determined under subsection (5), the amount, if any, by which

exceeds

Reinstatement of Pre-1997 Benefits

(6) Where lifetime retirement benefits have, as a consequence of a past service event, become provided to an individual under a defined benefit provision of a registered pension plan in respect of a period that

(a) was previously pensionable service of the individual under the provision,

(b) ceased to be pensionable service of the individual under the provision as a consequence of the individual ceasing before 1997 to be a member in relation to the provision, and

(c) has not, at any time after 1996 and before the past service event, been pensionable service of the individual under a defined benefit provision of a registered pension plan,

each provisional PSPA of the individual that is associated with the past service event shall be determined as if all benefits provided to the individual under the provision before 1997 in respect of the period had been provided to the individual under another defined benefit provision of a registered pension plan in relation to which the individual has not, at any time after 1996, been a member.

(3) Paragraph 8304(7)(b) of the Regulations is replaced by the following:

(b) subsection (5) would, but for paragraph (5)(b), apply in respect of the determination of each provisional PSPA of the individual that is associated with the past service event,

(4) Subsection 8304(8) of the Regulations and the heading before it are repealed.

(5) Subsection (1) applies with respect to past service events that occur after 1996.

(6) Subsections (2) to (4) apply to the determination of provisional PSPAs that are associated with past service events that occur after 1997.

8. (1) Part LXXXIII of the Regulations is amended by adding the following after section 8304:

Pension Adjustment Reversal

Total Pension Adjustment Reversal

8304.1 (1) For the purpose of subsection 248(1) of the Act, an individual's "total pension adjustment reversal" for a calendar year means the total of all amounts each of which is the pension adjustment reversal (in this Part and Part LXXXIV referred to as "PAR") determined in connection with the individual's termination in the year from a deferred profit sharing plan or from a benefit provision of a registered pension plan.

Termination in 1997

(2) For the purposes of subsection (1) and the description of R in paragraph 8307(2)(b), where an individual terminates in 1997 from a deferred profit sharing plan or from a benefit provision of a registered pension plan, the termination is deemed to have occurred in 1998.

PAR — Deferred Profit Sharing Plan

(3) For the purposes of this Part and Part LXXXIV and subject to subsection (12), an individual's PAR determined in connection with the individual's termination from a deferred profit sharing plan is

(a) where the conditions in subsection (13) are satisfied with respect to the termination, the total of all amounts each of which is an amount

but does not include any amount to which a spouse or former spouse of the individual has acquired rights as a consequence of a breakdown of their marriage; and

(b) in any other case, nil.

PAR — Money Purchase Provision

(4) For the purposes of this Part and Part LXXXIV and subject to subsection (12), an individual's PAR determined in connection with the individual's termination from a money purchase provision of a registered pension plan is

(a) where the conditions in subsection (14) are satisfied with respect to the termination, the total of all amounts each of which is an amount

but does not include any amount to which a spouse or former spouse of the individual has acquired rights as a consequence of a breakdown of their marriage; and

(b) in any other case, nil.

PAR — Defined Benefit Provision

(5) For the purposes of this Part and Part LXXXIV and subject to subsections (6) and (12), an individual's PAR determined in connection with the individual's termination from a defined benefit provision of a registered pension plan is

(a) where the conditions in subsection (14) are satisfied with respect to the termination, the amount determined by the formula

A + B - C - D

where

A is the total of all amounts each of which is, in respect of a particular year that is the year in which the termination occurs or that is a preceding year, the lesser of

B is the total of all amounts each of which is the portion of the grossed-up amount of a provisional PSPA (other than a provisional PSPA determined in accordance with subsection 8303(8)) of the individual that is associated with a past service event occurring before the time of the termination that can reasonably be considered to be attributable to benefits provided under the provision,

C is the total of all amounts each of which is a specified distribution made in respect of the individual and the provision at or before the time of the termination, and

D is the total of all amounts each of which is a PA transfer amount in relation to the individual's termination from the provision; and

(b) in any other case, nil.

Defined Benefit Pension Credits

(6) For the purpose of subparagraph (i) of the description of A in paragraph (5)(a), in determining an individual's PAR in connection with the individual's termination from a defined benefit provision of a registered pension plan,

(a) the individual's pension credits under the provision for the year in which the termination occurs shall be determined without regard to benefits provided after the time of the termination; and

(b) the individual's pension credits under the provision for each year in which the plan was a specified multi-employer plan are deemed to be nil.

Grossed-up PSPA Amount

(7) For the purposes of the descriptions of B in subsection 8303(7.1) and paragraph (5)(a), the grossed-up amount of an individual's provisional PSPA with respect to an employer that is associated with a past service event is the amount that would be the provisional PSPA if

(a) the values of C and D in subsections 8303(3) and 8304(5) were nil; and

(b) the words "at the time the past service event occurred" in paragraph (b) of the description of A in subsection 8304(5) were read as "immediately before the time the past service event occurred".

Specified Distribution

(8) For the purpose of the description of C in paragraph (5)(a), an amount paid under a defined benefit provision of a registered pension plan with respect to an individual is a specified distribution made in respect of the individual and the provision at the time it is paid, except to the extent that

(a) it can reasonably be considered to be a payment of benefits in respect of any period before 1990;

(b) it is transferred to another registered pension plan (other than a plan that is, at the time of the transfer, a specified multi-employer plan) in accordance with subsection 147.3(3) of the Act;

(c) it is transferred to another defined benefit provision of the plan where the transfer would, if the provision and the other provision were in separate registered pension plans, constitute a transfer in accordance with subsection 147.3(3) of the Act;

(d) it is a payment in respect of an actuarial surplus;

(e) it is

(f) it can reasonably be considered to be a payment of benefits provided in respect of a period throughout which the plan was a specified multi-employer plan; or

(g) it can reasonably be considered to be a payment of benefits provided in respect of a period throughout which the individual was employed outside Canada, where the benefits became provided as a consequence of a past service event in respect of which the Minister had consented to the application of subsection 8303(10) for the purpose of determining the individual's provisional PSPAs.

Property Made Available

(9) Where property held in connection with a particular defined benefit provision of a pension plan is made available at any time to provide benefits with respect to an individual under another benefit provision of a pension plan, subsection (8) applies as if the amount of the property had been paid under the particular provision at that time with respect to the individual.

PA Transfer Amount

(10) Where

(a) an individual has terminated, at a particular time after 1996, from a defined benefit provision (in this subsection referred to as the "former provision") of a registered pension plan,

(b) lifetime retirement benefits (in this subsection referred to as the "past service benefits") have, as a consequence of a past service event occurring at or before the particular time, become provided to the individual under another defined benefit provision of a registered pension plan in respect of a period that is or was pensionable service of the individual under the former provision, and

(c) lifetime retirement benefits to which the individual is or was entitled under the former provision in respect of the period have, under subsection 8304(5), been taken into account as former benefits in determining a provisional PSPA of the individual that is associated with the past service event,

for the purposes of subsection 8406(5) and the description of D in paragraph (5)(a), the lesser of

(d) the portion of the value determined for A in subsection 8303(3), for the purpose of determining the provisional PSPA, that can reasonably be considered to be attributable to the past service benefits, and

(e) the portion of the value determined for B in subsection 8303(3), for the purpose of determining the provisional PSPA, that can reasonably be considered to be attributable to the former benefits

is a PA transfer amount in relation to the individual's termination from the former provision.

Special 1997 PA Transfer Amount

(11) Where

(a) an individual has terminated, at a particular time in 1997, from a particular defined benefit provision of a registered pension plan,

(b) lifetime retirement benefits (in this subsection referred to as the "past service benefits") have, as a consequence of a past service event that occurred after the particular time and before 1998, become provided to the individual under the particular provision, or under another defined benefit provision of a registered pension plan, in respect of a period that was previously pensionable service of the individual under the particular provision, and

(c) lifetime retirement benefits to which the individual was previously entitled under the particular provision in respect of the period have, under subsection 8304(5), been taken into account as former benefits in determining a provisional PSPA of the individual that is associated with the past service event,

for the purposes of subsection 8406(5) and the description of D in paragraph (5)(a), the lesser of

(d) the portion of the value determined for A in subsection 8303(3), for the purpose of determining the provisional PSPA, that can reasonably be considered to be attributable to the past service benefits, and

(e) the portion of the value determined for B in subsection 8303(3), for the purpose of determining the provisional PSPA, that can reasonably be considered to be attributable to the former benefits

is a PA transfer amount in relation to the individual's termination from the particular provision at the particular time.

Subsequent Membership

(12) Where an individual has ceased at a particular time to be a member in relation to a deferred profit sharing plan or a benefit provision of a registered pension plan and subsequently becomes a member in relation to the plan or the provision, as the case may be, the following rules apply in determining the individual's PAR in connection with any subsequent termination from the plan or the provision, as the case may be:

(a) in the case of a deferred profit sharing plan or money purchase provision, any amounts included in a pension credit of the individual under the plan or provision because of an allocation to the individual before the particular time shall be disregarded; and

(b) in the case of a defined benefit provision,

Termination Conditions — Deferred Profit Sharing Plan

(13) For the purpose of paragraph (3)(a), the conditions with respect to an individual's termination from a deferred profit sharing plan are the following:

(a) the termination occurs after 1996 and otherwise than because of death; and

(b) no payments described in subparagraph 147(2)(k)(v) of the Act have been made out of or under the plan with respect to the individual.

Termination Conditions — Registered Pension Plan

(14) For the purposes of paragraphs (4)(a) and (5)(a), the conditions with respect to an individual's termination from a benefit provision of a registered pension plan are the following:

(a) the termination occurs after 1996 and otherwise than because of death; and

(b) no retirement benefits have been paid under the provision with respect to the individual (other than retirement benefits paid with respect to the individual's spouse or former spouse as a consequence of a breakdown of their marriage).

Marriage Breakdown

(15) Where

(a) before a member terminates from a defined benefit provision of a registered pension plan, there has been a breakdown of the member's marriage, and

(b) as a consequence of the breakdown,

for the purpose of subsection (8),

(c) any amount paid under the provision with respect to the rights acquired by the spouse (other than a single amount paid under the provision at or before the time of the member's termination in full satisfaction of the rights acquired by the spouse) is deemed not to have been paid with respect to the member, and

(d) unless a single amount has been paid under the provision at or before the time of the member's termination in full satisfaction of the rights acquired by the spouse, a single amount equal to the present value (at the time the member terminates from the provision) of the benefits to which the member has ceased to have rights as a consequence of the breakdown is deemed to have been paid to the member at that time under the provision in full satisfaction of those benefits.

(2) Subsection (1) applies after 1996.

9. (1) The formula in paragraph 8307(2)(b) of the Regulations is replaced by the following:

$8,000 + A + B + C - D + R

(2) Paragraph 8307(2)(b) of the Regulations is amended by striking out the word "and" at the end of the description of C, by adding the word "and" at the end of the description of D and by adding the following after the description of D:

R is the total of all amounts each of which is a PAR determined in connection with the individual's termination in the particular year from a deferred profit sharing plan, or from a benefit provision of a registered pension plan, and in respect of which an information return has been filed under section 8402.01 with the Minister before the particular time.

(3) Subparagraph 8307(3)(b)(ii) of the Regulations is replaced by the following:

A + C - D + R

where A, C, D and R have the same values as they have at the particular time for the purposes of the formula in paragraph (2)(b).

(4) The portion of subsection 8307(5) of the Regulations before paragraph (a) is replaced by the following:

(5) For the purposes of the description of C in paragraph (2)(b) and the description of G in the definition "net past service pension adjustment" in subsection 146(1) of the Act, the amount of an individual's PSPA withdrawals for a calendar year, determined as of a particular time, is

(5) Subsections (1) to (3) apply to the 1998 and subsequent calendar years.

(6) Subsection (4) applies after 1995.

10. (1) The portion of subsection 8308.1(2) of the Regulations before paragraph (a) is replaced by the following:

(2) Subject to subsections (3) to (4.1), the pension credit of an individual for a calendar year with respect to an employer under a foreign plan is

(2) The portion of paragraph 8308.1(2)(b) of the Regulations after subparagraph (iv) is replaced by the following:

the lesser of

(3) Section 8308.1 of the Regulations is amended by adding the following after subsection (4):

Pension Credits — 1996 to 2003

(4.1) For the purpose of determining the pension credit of an individual for a calendar year after 1995 and before 2004 with respect to an employer under a foreign plan, subparagraph (2)(b)(vi) shall be read as

(4) Subsections (1) to (3) apply after 1991.

11. (1) Section 8308.2 of the Regulations and the heading before it are replaced by the following:

Prescribed Amount for Member of Foreign Plan

Prescribed Amount

8308.2 (1) Where

(a) throughout a period in a particular calendar year after 1992 an individual resident in Canada rendered services to an employer, other than services that were primarily services rendered in Canada or services rendered in connection with a business carried on by the employer in Canada, or a combination of those services,

(b) the individual became entitled in the particular year, either absolutely or contingently, to benefits under a pension plan that is a foreign plan (as defined in subsection 8308.1(1)) in respect of the services, and

(c) the individual continued to be entitled at the end of the particular year, either absolutely or contingently, to all or part of the benefits,

subject to subsection (2), there is prescribed in respect of the individual for the year following the particular year, for the purposes of the descriptions of B in the definitions "RRSP deduction limit" and "unused RRSP deduction room" in subsection 146(1) of the Act and the description of B in paragraph 204.2(1.1)(b) of the Act, the lesser of

(d) the amount by which the money purchase limit for the particular year exceeds the PA offset for the particular year, and

(e) 10% of the portion of the individual's resident compensation from the employer for the particular year that is attributable to services rendered by the individual to the employer in periods throughout which the individual rendered services described in paragraph (a).

Prescribed Amounts — 1997 to 2004

(2) For the purpose of determining the amount prescribed under subsection (1) in respect of an individual for a calendar year after 1996 and before 2005, paragraph (d) of that subsection shall be read as:

"(d) the money purchase limit for the particular year, and".

(2) Subsection (1) applies after 1991.

12. (1) Paragraph 8308.3(1)(a) of the Regulations is replaced by the following:

(a) a plan or arrangement referred to in any of paragraphs (a) to (k), (m) and (n) of the definition "retirement compensation arrangement" in subsection 248(1) of the Act;

(2) Paragraph 8308.3(1)(b) of the Regulations is repealed.

(3) Paragraph 8308.3(1)(c) of the Regulations is replaced by the following:

(c) a plan or arrangement that does not provide in any circumstances for payments to be made to or for the benefit of the individual after the later of the last day of the calendar year in which the individual attains 69 years of age and the day that is 5 years after the day of termination of the individual's employment with the employer;

(4) The portion of subsection 8308.3(2) of the Regulations before paragraph (a) is replaced by the following:

(2) Subject to subsections (3) and (3.1), the pension credit of an individual for a calendar year with respect to an employer under a specified retirement arrangement is

(5) The portion of subparagraph 8308.3(2)(b)(v) of the Regulations before the description of B is replaced by the following:

0.85A - B

is greater than nil where

A is the lesser of

(6) Section 8308.3 of the Regulations is amended by adding the following after subsection (3):

Pension Credits — 1996 to 2003

(3.1) For the purpose of determining the pension credit of an individual for a calendar year after 1995 and before 2004 with respect to an employer under a specified retirement arrangement, the portion of paragraph (2)(b) after subparagraph (iv) shall be read as

0.85A - B

is greater than nil where

A is the lesser of

B is the amount that would be the pension adjustment of the individual for the year with respect to the employer if subsection 8301(1) were read without reference to paragraph (c),

the amount that would be determined by the formula in subparagraph (v) if

(7) Subsections (1), (2) and (4) to (6) apply after 1991.

(8) Subsection (3) applies after 1997, except that paragraph 8308.3(1)(c) of the Regulations, as enacted by subsection (3), does not apply in respect of an individual who attained 69 years of age before 1998.

13. (1) Subsection 8308.4(2) of the Regulations is replaced by the following:

(2) Where

(a) in a particular calendar year after 1992 an individual renders services in respect of which an amount that is included in computing the income from a business of any person was payable directly or indirectly by the Government of Canada or of a province, and

(b) at the end of the particular year, the individual is entitled, either absolutely or contingently, to benefits under a government-sponsored retirement arrangement that provides benefits in connection with such services,

there is prescribed in respect of the individual for the year following the particular year, for the purposes of the descriptions of B in the definitions "RRSP deduction limit" and "unused RRSP deduction room" in subsection 146(1) of the Act and the description of B in paragraph 204.2(1.1)(b) of the Act,

(c) where the particular year is before 1996, the amount by which the RRSP dollar limit for that following year exceeds $1,000, and

(d) in any other case, the RRSP dollar limit for that following year.

(2) Subsection (1) applies after 1992.

14. (1) Section 8309 of the Regulations is replaced by the following:

8309. (1) Subject to subsection (3), where an individual is, at any time in a particular calendar year after 1989, a lieutenant governor of a province (other than a lieutenant governor who is not a contributor as defined in section 2 of the Lieutenant Governors Superannuation Act), there is prescribed in respect of the individual for the year following the particular year, for the purposes of the descriptions of B in the definitions "RRSP deduction limit" and "unused RRSP deduction room" in subsection 146(1) of the Act and the description of B in paragraph 204.2(1.1)(b) of the Act, the lesser of

(a) the amount, if any, by which 18% of the salary received by the individual for the particular year as a lieutenant governor exceeds the PA offset for the particular year, and

(b) the amount by which the money purchase limit for the particular year exceeds the PA offset for the particular year.

(2) Subject to subsection (3), where an individual is, at any time in a particular calendar year after 1990, a judge in receipt of a salary under the Judges Act, there is prescribed in respect of the individual for the year following the particular year, for the purposes of the descriptions of B in the definitions "RRSP deduction limit" and "unused RRSP deduction room" in subsection 146(1) of the Act and the description of B in paragraph 204.2(1.1)(b) of the Act, the lesser of

(a) the amount, if any, by which 18% of the salary (other than salary that was not received under the Judges Act) received by the individual for the particular year as a judge exceeds the PA offset for the particular year, and

(b) the amount by which the money purchase limit for the particular year exceeds the PA offset for the particular year.

(3) For the purpose of determining the amount prescribed under subsection (1) or (2) in respect of an individual for a calendar year after 1996 and before 2005, paragraphs (1)(b) and (2)(b) shall be read as:

"(b) the money purchase limit for the particular year.".

(2) Subsection (1) applies after 1989.

15. (1) Section 8311 of the Regulations is replaced by the following:

8311. Where a pension credit, provisional PSPA or PAR of an individual is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, if it is equidistant from two such consecutive multiples, to the higher of the two multiples.

(2) Subsection (1) applies after 1996.

16. (1) Part LXXXIV of the Regulations is amended by adding the following after section 8402:

Pension Adjustment Reversal

Deferred Profit Sharing Plan

8402.01 (1) Where the PAR determined in connection with an individual's termination from a deferred profit sharing plan is greater than nil, each trustee under the plan shall file with the Minister an information return in prescribed form reporting the PAR

(a) where the termination occurs in the first, second or third quarter of a calendar year, on or before the day that is 60 days after the last day of the quarter in which the termination occurs, and

(b) where the termination occurs in the fourth quarter of a calendar year, before February of the following calendar year,

and, for this purpose, an information return filed by a trustee under a deferred profit sharing plan is deemed to have been filed by each trustee under the plan.

Benefit Provision of a Registered Pension Plan

(2) Subject to subsection (3), where the PAR determined in connection with an individual's termination from a benefit provision of a registered pension plan is greater than nil, the administrator of the plan shall file with the Minister an information return in prescribed form reporting the PAR

(a) where the termination occurs in the first, second or third quarter of a calendar year, on or before the day that is 60 days after the last day of the quarter in which the termination occurs; and

(b) where the termination occurs in the fourth quarter of a calendar year, before February of the following calendar year.

Extended Deadline — PA Transfer Amount

(3) Where, in determining an individual's PAR in connection with the individual's termination from a defined benefit provision of a registered pension plan, it is reasonable for the administrator of the plan to conclude, on the basis of information provided to the administrator by the administrator of another pension plan or by the individual, that the value of D in paragraph 8304.1(5)(a) in respect of the termination may be greater than nil, the administrator shall file with the Minister an information return in prescribed form reporting the PAR, if it is greater than nil, on or before the later of

(a) the day on or before which it would otherwise be required to be filed; and

(b) the day that is 60 days after the earliest day on which the administrator has all the information required to determine that value.

Calendar Year Quarter

(4) For the purposes of this section,

(a) the first quarter of a calendar year is the period beginning on January 1 and ending on March 31 of the calendar year;

(b) the second quarter of a calendar year is the period beginning on April 1 and ending on June 30 of the calendar year;

(c) the third quarter of a calendar year is the period beginning on July 1 and ending on September 30 of the calendar year; and

(d) the fourth quarter of a calendar year is the period beginning on October 1 and ending on December 31 of the calendar year.

(2) Subsection (1) applies after 1996, except that any return otherwise required by section 8402.01 of the Regulations, as enacted by subsection (1), to be filed before the particular day that is the later of

(a) March 31, 1999, if the return is in connection with a termination in 1997 or 1998, and September 30, 1999, if the return is in connection with a termination in 1999, and

(b) the day that is 60 days after the day on which subsection (1) is published in the Canada Gazette,

is required to be filed on or before the particular day.

17. (1) Subsections 8404(1) and (2) of the Regulations are replaced by the following:

8404. (1) Every person who is required by section 8401 or 8402.1 to file an information return with the Minister shall, on or before the day on or before which the return is required to be filed with the Minister, send to each individual to whom the return relates, two copies of the portion of the return that relates to the individual.

(2) Every person who is required by section 8402, 8402.01 or 8403 to file an information return with the Minister shall, on or before the day on or before which the return is required to be filed with the Minister, send to each individual to whom the return relates, one copy of the portion of the return that relates to the individual.

(2) Subsection 8404(1) of the Regulations, as enacted by subsection (1), applies after 1992.

(3) Subsection 8404(2) of the Regulations, as enacted by subsection (1), applies after 1996.

18. (1) Section 8406 of the Regulations is amended by adding the following after subsection (3):

(4) Where a person requires information from another person in order to determine a PAR under section 8304.1 in connection with an individual's termination in a calendar year from a deferred profit sharing plan or from a benefit provision of a registered pension plan (other than information that the other person is required to provide to the person under subsection (5)) and makes a written request to the other person for the information, the other person shall provide the person with the information that is available to the other person on or before

(a) if the request is received before December 17 of the year, the day that is 30 days after the day on which the request is received; and

(b) in any other case, the later of the day that is 15 days after the day on which the request is received and January 15 of the year following the year.

(5) Where benefits provided to an individual under a registered pension plan (in this subsection referred to as the "importing plan") as a consequence of a past service event result in a PA transfer amount in relation to the individual's termination from a defined benefit provision of another registered pension plan (in this subsection referred to as the "exporting plan"),

(a) the administrator of the importing plan shall, in writing on or before the day that is 30 days after the day on which the past service event occurred, notify the administrator of the exporting plan of the occurrence of the past service event and of its relevance in determining the individual's PAR in connection with the individual's termination from the defined benefit provision; and

(b) the administrator of the importing plan shall notify the administrator of the exporting plan of the PA transfer amount in writing on or before the day that is 60 days after

(2) Subsection (1) applies after 1996, except that

(a) any information otherwise required by subsection 8406(4) of the Regulations, as enacted by subsection (1), to be provided before the particular day that is the later of March 1, 1999 and the day that is 60 days after the day on which subsection (1) is published in the Canada Gazette is required to be provided on or before the particular day;

(b) any notification otherwise required by paragraph 8406(5)(a) of the Regulations, as enacted by subsection (1), to be provided before September 30, 1998 is required to be provided on or before that date; and

(c) any notification otherwise required by paragraph 8406(5)(b) of the Regulations, as enacted by subsection (1), to be provided before the particular day that is 60 days after the day on which subsection (1) is published in the Canada Gazette is required to be provided on or before the particular day.

19. (1) The definition "defined benefit limit" in subsection 8500(1) of the Regulations is replaced by the following:

"defined benefit limit" for a calendar year means the greater of

(a) $1,722.22, and

(b) 1/9 of the money purchase limit for the year; (plafond des prestations déterminées)

(2) Subsection (1) applies after 1995, except that paragraph (b) of the definition "defined benefit limit" in subsection 8500(1) of the Regulations, as enacted by subsection (1), applies

(a) before March 6, 1996 as though the money purchase limit for each year after 1995 were the amount that it would be if the definition "money purchase limit" in subsection 147.1(1) of the Income Tax Act applied as it read on December 31, 1995; and

(b) after March 5, 1996 and before 1997 as though the money purchase limit for each year after 1995 were the amount that it would be if the definition "money purchase limit" in subsection 147.1(1) of that Act applied as it read on January 1, 1997.

20. (1) Section 8501 of the Regulations is amended by adding the following after subsection (6):

Benefits Provided with Surplus on Plan Wind-up

(7) Where

(a) a single amount is paid in full or partial satisfaction of an individual's entitlement to retirement benefits (in this subsection referred to as the "commuted benefits") under a defined benefit provision of a registered pension plan,

(b) other benefits are subsequently provided to the individual under the provision as a consequence of an allocation, on full or partial wind-up of the plan, of an actuarial surplus under the provision,

(c) the other benefits include benefits (in this subsection referred to as "ancillary benefits") that, but for this subsection, would not be permissible under this Part,

(d) if the individual had previously terminated from the provision and the conditions in subsection 8304.1(14) were satisfied with respect to the termination, it is reasonable to consider that all of the ancillary benefits are in respect of periods before 1990, and

(e) the Minister has approved the application of this subsection in respect of the ancillary benefits,

for the purpose of determining whether the ancillary benefits are permissible under this Part, the individual is considered to have an entitlement under the provision to the commuted benefits.

(2) Subsection (1) applies to benefits provided after 1996.

21. (1) Clause 8502(e)(i)(A) of the Regulations is replaced by the following:

(2) Subsection (1) applies after 1996, except that

(a) subject to paragraph (b), clause 8502(e)(i)(A) of the Regulations, as enacted by subsection (1), applies in respect of benefits provided to an individual who attained 70 years of age before 1997 or 69 years of age in 1996 as though the reference in that clause to "69 years of age" were a reference to "71 years of age" and "70 years of age" respectively; and

(b) where retirement benefits under a pension plan are provided to an individual by means of an annuity contract issued before March 6, 1996 and, under the terms and conditions of the contract as they read immediately before that day,

clause 8502(e)(i)(A) of the Regulations, as enacted by subsection (1), applies in respect of the benefits as though the reference in that clause to "69 years of age" were a reference to "71 years of age".

22. (1) Clause 8503(2)(f)(iii)(B) of the Regulations is replaced by the following:

(2) Subsection (1) applies after 1996, except that

(a) subject to paragraph (b), clause 8503(2)(f)(iii)(B) of the Regulations, as enacted by subsection (1), applies in respect of benefits provided to an individual who attained 70 years of age before 1997 or 69 years of age in 1996 as though the reference in that clause to "69 years of age" were a reference to "71 years of age" and "70 years of age" respectively; and

(b) where retirement benefits under a pension plan are provided to an individual by means of an annuity contract issued before March 6, 1996 and, under the terms and conditions of the contract as they read immediately before that day,

clause 8503(2)(f)(iii)(B) of the Regulations, as enacted by subsection (1), applies in respect of the benefits as though the reference in that clause to "69 years of age" were a reference to "71 years of age".

23. (1) Subparagraph 8506(1)(e)(iii) of the Regulations is replaced by the following:

(2) Subsection (1) applies after 1996, except that

(a) subject to paragraph (b), subparagraph 8506(1)(e)(iii) of the Regulations, as enacted by subsection (1), applies in respect of benefits provided to an individual who attained 70 years of age before 1997 or 69 years of age in 1996 as though the reference in that subparagraph to "69 years of age" were a reference to "71 years of age" and "70 years of age" respectively; and

(b) where retirement benefits under a pension plan are provided to an individual by means of an annuity contract issued before March 6, 1996 and, under the terms and conditions of the contract as they read immediately before that day,

subparagraph 8506(1)(e)(iii) of the Regulations, as enacted by subsection (1), applies in respect of the benefits as though the reference in that subparagraph to "69 years of age" were a reference to "71 years of age".

24. (1) Section 8509 of the Regulations is amended by adding the following after subsection (11):

PA Limits — 1996 to 2003

(12) Neither subsection 147.1(8) nor (9) of the Act applies to render a registered pension plan a revocable plan at the end of any calendar year after 1995 and before 2004 solely because a pension adjustment, a total of pension adjustments or a total of pension credits of an individual for the year (each of which is, in this subsection, referred to as a "test amount") is excessive where the subsection would not apply to render the plan a revocable plan at the end of the year if each test amount were decreased by the lesser of

(a) the amount, if any, by which the lesser of

exceeds the money purchase limit for the year, and

(b) the total of all amounts each of which is a pension credit referred to in clause (a)(i)(A).

Maximum Benefits Indexed Before 2005

(13) Where

(a) a pension plan is a grandfathered plan or would be a grandfathered plan if the references to "March 27, 1988" in the definitions "existing plan" and "grandfathered plan" in subsection 8500(1) were read as references to "March 5, 1996" and the references to "March 28, 1988" in the definition "existing plan" in that subsection were read as references to "March 6, 1996",

(b) under the terms of the plan as they read immediately before March 6, 1996, the plan provided for benefits that are benefits to which a condition in any of subsections 8504(1), (5) and (6) and paragraph 8505(3)(d) applies and, at that time, the benefits complied with the condition, and

(c) as a consequence of the change in the defined benefit limit effective March 6, 1996, the benefits would, if this Part were read without reference to this subsection, cease to comply with the condition,

the following rules apply:

(d) for the purpose of determining at any time after March 5, 1996 and before 1998 whether the benefits comply with the condition, the defined benefit limit for each year after 1995 is deemed to be the amount that it would be if the definition "money purchase limit" in subsection 147.1(1) of the Act were applied as it read on December 31, 1995, and

(e) for the purpose of determining at any time after 1997 whether the benefits comply with the condition, the defined benefit limit for 1996 and 1997 is deemed to be the amount that it would be if it were determined in accordance with paragraph (d).

(2) Subsection 8509(12) of the Regulations, as enacted by subsection (1), applies after 1995.

(3) Subsection 8509(13) of the Regulations, as enacted by subsection (1), applies after March 5, 1996, except that where

(a) the retirement benefits provided to an individual under a pension plan are provided by means of an annuity contract issued before March 6, 1996, and

(b) under the terms and conditions of the contract as they read immediately before March 6, 1996,

subsection 8509(13) of the Regulations, as enacted by subsection (1), shall, in its application to those benefits, be read without reference to the words "and before 1998" in paragraph (d) of that subsection and without reference to paragraph (e) of that subsection.

25. (1) Subsection 8516(1) of the Regulations is replaced by the following:

8516. (1) For the purposes of subsection 147.2(2) of the Act, a contribution described in any of subsections (2) to (9) that is made by an employer to a registered pension plan in respect of the defined benefit provisions of the plan is a prescribed contribution.

(2) Section 8516 of the Regulations is amended by adding the following after subsection (8):

Actuarial Reports Signed Before March 6, 1996

(9) A contribution that is made by an employer to a registered pension plan is described in this subsection if

(a) the actuarial report containing the recommendation pursuant to which the contribution is made was signed before March 6, 1996;

(b) the contribution is made after March 5, 1996;

(c) the contribution would be an eligible contribution under subsection 147.2(2) of the Act if

(d) where the contribution is made after 1996, the plan is not a designated plan under section 8515 at the time it is made.

(3) Subsections (1) and (2) apply after 1995.

26. (1) The portion of subsection 8517(1) of the Regulations before the formula is replaced by the following:

8517. (1) Subject to subsections (2) to (3.1), for the purpose of applying paragraph 147.3(4)(c) of the Act to the transfer of an amount on behalf of an individual in full or partial satisfaction of the individual's entitlement to benefits under a defined benefit provision of a registered pension plan, the prescribed amount is the amount that is determined by the formula

(2) The table to subsection 8517(1) of the Regulations is replaced by the following:

Attained Age	Present Value Factor
Under 50	9.0
50	9.4
51	9.6
52	9.8
53	10.0
54	10.2
55	10.4
56	10.6
57	10.8
58	11.0
59	11.3
60	11.5
61	11.7
62	12.0
63	12.2
64	12.4
65	12.4
66	12.0
67	11.7
68	11.3
69	11.0
70	10.6
71	10.3
72	10.1
73	9.8
74	9.4
75	9.1
76	8.7
77	8.4
78	8.0
79	7.7
80	7.3
81	7.0
82	6.7
83	6.4
84	6.1
85	5.8
86	5.5
87	5.2
88	4.9
89	4.7
90	4.4
91	4.2
92	3.9
93	3.7
94	3.5
95	3.2
96 or over	3.0

(3) Section 8517 of the Regulations is amended by adding the following after subsection (3):

Benefits Provided With Surplus on Plan Wind-up

(3.1) Where an amount is transferred in full or partial satisfaction of an individual's entitlement to benefits under a defined benefit provision of a registered pension plan and the benefits include benefits (in this subsection referred to as "ancillary benefits") that are permissible solely because of subsection 8501(7), the prescribed amount for the purpose of paragraph 147.3(4)(c) of the Act in respect of the transfer is the total of

(a) the amount that would, but for this subsection, be the prescribed amount, and

(b) an amount approved by the Minister not exceeding the lesser of

exceeds

(4) Subsections (1) and (3) apply to amounts transferred in respect of benefits provided after 1996.

(5) Subsection (2) applies to transfers that occur after 1995.

[45-1-o]

Footnote a

S.C., 1992, c. 49, s. 102

Footnote b

S.C., 1992, c. 49, s. 102

Footnote 1

SOR/98-271

Footnote 2

SOR/97-183

Footnote c

S.C., 1998, c. 19, s. 39

Footnote d

S.C., 1998, c. 19, s. 222

Footnote e

R.S., 1985, c. 1 (5th Supp.)

Footnote 3

C.R.C., c. 945

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