2.1. This Act, except sections 6, 64 and 107, the first paragraph of section 110 and section 171.1, which apply with the necessary modifications, does not apply to a pension plan if
(1) all the members of the pension plan are persons connected with the employer within the meaning of subsection 3 of section 8500 of the Income Tax Regulations (Consolidated Regulations of Canada, 1978, chapter 945) and membership in the plan is optional and is restricted to those persons;
(2) only employees described in section 1 may become members of the pension plan; and
(3) active membership in the plan ceases when the member ceases to be a person connected with the employer
Moreover, such a pension plan is deemed, for the purposes of section 98, not to be a pension plan governed by this Act.
A pension plan to which the first paragraph applies becomes subject to this Act upon being amended to allow other persons to become members.