In the course of providing a detailed discussion (similar to that in 2016-0643191E5 F) of the DSLP rules in relation to a copy of a plan that had been submitted to it, the Directorate made various comments on perceived deficiencies in the terms, including that:
- the “plan should … be amended to provide that early withdrawal from the plan may only take place in specific circumstances set out in the plan and subject to the employer's discretion”
- the plan should be amended to clarity that the “deferral period does not exceed six years and all amounts held under the DSLP are paid to the employee by the end of the first taxation year commencing after the deferral period”
- the “plan provides that an executive on leave without pay, disability or parental leave may participate in the plan, but the leave cannot begin until the date of return to work. It appears to us that an executive who participates in the plan in such circumstances would take the leave without first having had a deferral period. In such a case, the leave would be funded solely from salary advances and would not constitute a DSLP.”
- “your plan specifies that an executive who avails himself or herself of the plan must return to "XXXXXXXXXXXX" employment. In this sense, your plan does not appear to us to require the executive to return to employment if he or she takes the leave in the last year of the Master Agreement. This is contrary to the Regulations [subparagraph 6801(a)(v)], which requires the employee to return to his or her regular duties for a period at least equal to the duration of the leave, regardless of whether the leave is taken during the Master Agreement or at the end of the Master Agreement.”