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If a lump-sum payment is used, each participant will be subject to tax on the gross proceeds received from the other two participants unreduced by the amount that each must pay the other two participants. The designation under the Income Tax Act recognizes that certain occupations charged with protecting the safety of the public require strenuous physical and mental capabilities and that those workers should be entitled to early retirement at age 55 with an unreduced pension. The case involved the plan's unreduced early retirement benefit, which, under the plan terms, was suspended for pensioners who returned to "disqualifying employment. |
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