A deferred share unit plan provided that Units must be redeemed by the Corporation following termination of employment, termination of the Plan following a change of control of the Corporation (which would not necessarily result in the employee’s termination), termination of the Plan in respect of US participants who are affected by a change of control of the Corporation under section 409A of the US Code, death or retirement. Does the plan qualify under Reg. 6801(d)?
The Directorate found that the plan did not qualify under Reg. 6801(d)(i) because “the Participants could receive an amount under the Plan following a change of control of the Corporation” and because the US participants’ units were required to be redeemed following "retirement" as provided under s. 409A of the US Code. The grandfathering in 2015-0610801C6 did not apply because the change of control provision was sufficient to oust Reg. 6801(d). In the absence of Reg. 6801(d) applying, the Plan thus was a salary deferral arrangement.