| 24(1) | 5-902261 |
| M.P. Baldwin | |
| (613) 957-3499 |
19(1)
November 2, 1990
Dear Sir:
Re: Salary Deferral Arrangements
This is in reply to your letter of August 27, 1990 concerning the above mentioned subject.
It is our general view that where an employer agrees to pay an employee an amount on or after his retirement and the amount cannot reasonably be considered to be salary for services rendered that the employee agreed to defer receipt of, the amount will not be considered to be a payment out of a salary deferral arrangement. Whether such an amount would be considered to be a retiring allowance as defined in the Act can only be determined by reference to the facts of the particular case.
We trust the above comments will be of assistance to you.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate