90.2. A pension plan that includes defined contribution provisions may provide that a member who has ceased to be an active member or, on the death of the member, the member’s spouse is entitled to apply, on the conditions and within the time prescribed by regulation, for payment of a variable payment life pension out of all or part of the sums the member or spouse holds under defined contribution provisions.
Such a pension must be paid into a variable payment life pension fund that meets the requirements prescribed by regulation, in particular with respect to establishing the amount of the pension that may be purchased with the sums transferred or to increasing or decreasing that amount.
A plan that pays variable payment life pensions may not be considered a defined benefit plan or a target benefit plan. However, the provisions of this Act regarding the latter plans may, to the extent prescribed by regulation and with the modifications provided for in the regulation, apply to a plan that pays variable payment life pensions.