Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Registered Plans Division Financial Industries Dave Wurtele Division
Your File 0232785 Application or Subsections 8504(6) and (7) of the Income Tax Regulations (the "Regulations")
This is in reply to your Round Trip Memorandum of August 25, 1993 in which you requested our review of the application of the above -noted provisions to certain accruals of pension benefits under XXXXXXXXXX
Subsection 8504(6) of the Regulations limits the amount of lifetime benefits that may be provided under a registered pension plan in respect of pensionable service provided in a year prior to 1990. Subsection 8504(7) of the Regulations, however, restricts the application of Regulation 8504(6) to situations where pre-1990 benefits are accrued under an RPP after June 7, 1990 and excludes situations where the accrual occurs after June 7, 1990, but is in consequence of an agreement entered into before June 8, 1990, or where the employee's RRSP contribution room was already limited in the prior year because of his membership in an RPP or DPSP in that prior year. In this way any pre-1990 accruals of RPP benefits are maintained at pre-reform levels.
We have reviewed the submissions made in respect of the cases submitted for your consideration and are of the opinion that subsection 8504(7) of the regulations will apply to exclude the application of subsection 8504(6). It should be noted however that our opinion is based on the specifics of these cases and may or may not apply in other circumstances or in respect of other pension plans.
for DirectorFinancial Industries DivisionRulings Directorate
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© Her Majesty the Queen in Right of Canada, 1993
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© Sa Majesté la Reine du Chef du Canada, 1993
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