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Income and Exemptions


Procedures

Assessing Eligibility - Employment and Income Monitoring: October 9, 2008

Assessing Eligibility - Income In Excess: October 9, 2008

Sole recipient with disabled child - Time Limits and Earnings Exempt: October 9, 2008

Assessing Eligibility when Income is Exempt up to Asset Level

Identifying PWD Eligibility Date: October 9, 2008

Canada Pension Plan Cost of Living Adjustments (COLA): May 26, 2006

Canada Pension Plan Retroactive Payments: February 6, 2006

Family Maintenance - Adult Passthrough Maintenance Income: September 27, 2006

Quebec Pension Plan (QPP): February 6, 2006

Rental Subsidy

Students' Assistance: February 8, 2011

Therapeutic Volunteer Supplement and Other Mental Health Volunteer Stipends: May 1, 2005

Registered Disability Savings Plan (RDSP): July 20, 2011

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Assessing Eligibility - Employment and Income Monitoring: October 9, 2008
October 9, 2008

In order for staff to assess a client’s eligibility prior to issuing assistance, the client must receive earnings (net income) that are in excess of the amount of assistance payable.  The net income should be verified by a payslip, or other formal confirmation from the employer.  The copy is then placed on file unless the client provides verbal confirmation of the amount of income received and states they do not require further assistance. 

An overpayment should not be calculated in these cases.

Staff will assess eligibility based on the current situation.  If the client has not actually received income or staff have not been able to assess eligibility prior to Cheque Issue, the client will then be obligated to report the income on the Monthly Report (SD0081) as outlined in the brochure, How to Complete Your “Monthly Report” Form. [For Brochure – see Resources for Clients]

The EAO is responsible for ensuring that the Weekly Employment Monitoring Reports (WEM-Reports) are reviewed regularly.  Ministry staff may also receive other information that a client has found employment.

Staff will identify clients with employment, contact clients, signal cheques, and assess eligibility.  (Staff are not limited to relying on service provider information to assess clients with income.  Staff may verify or confirm any information received that pertains to a change in a client’s circumstance that may affect their eligibility for ongoing assistance.)

Due to a short turn around between job placement and Cheque Issue, staff should initiate contact by telephone and immediately send out the Information Request – General Letter (SD3238) to verify or confirm hourly wage, hours per week (estimated), start date and initial pay dates.  [see Forms and Letters]

It is important that each client be sent a letter as early as possible so they can prepare and budget accordingly.

If the client has not responded by cheque cut-off, the signal notification letter will automatically be sent to the client.  Staff will then assess for eligibility at cheque issue.  If the client does not contact the office by the 5th, the cheque is cancelled and regional file closure procedure is followed. 

Procedural Guidelines:

  1. Review Weekly Employment Monitoring Report each Monday and identify those clients who have been placed in employment.  Staff may utilise other reporting mechanisms at their disposal to monitor employment and income (such as a client self-reporting).

  2. Contact client by telephone and send Information Request – General Letter (SD3238) [see Forms and Letters] to acknowledge their new job and request information on hourly wage, hours per week (estimated), start date and initial pay dates.  Advise client if earnings received are in excess of their IA rate they will not receive assistance at the end of the month. Advise client to budget accordingly.  Remember: client may be assessed for supplements if appropriate.

  3. Set a signal for the next Cheque Issue to assess eligibility (when it is likely the client will receive a paycheque).

  4. Add a comment to the system indicating the details of the signal, the contact information, and any employment details confirmed thus far. 

  5. Record income monitoring activity on MIS by updating the ER1 screen (ER1;A).  Enter initiative code EIMI.  Enter a “y” next to the “File Review?” field. This indicates that you contacted the client via letter and phone.

  6. When client responds to the letter estimate if employment will result in the client’s independence of assistance.  Consider the sustainability of the employment placement.
  • Sporadic or unsustainable employment: If the employment placement will not lead to independence, the client will continue to report their income on the Monthly Report (SD0081) as outlined in the brochure, How to Complete Your “Monthly Report” Form. [For Brochure – see Resources for Clients]

  • Employment details unknown: If staff cannot determine yet if employment is sustainable, staff may decide to review the employment income in the following month. Create an activity with a due date, review procedural guidelines and ensure the client is aware their employment and income will continue to be monitored.

  • Sustainable Employment Income is verified: If it is determined that income is in excess, review file information to ensure earnings exemptions have been applied and that the income has not been previously reported.  Assess whether to turn cheque production off or close file.  Follow regional practice for file closure procedure.
  1. If the client did not respond prior to Cheque Issue and is seen on Cheque Issue, verify the amount of income prior to releasing the cheque.  The client is required to submit the requested information according to Section 10 of the EA Act and the EAPWD Act.

  2. If the client is ineligible, cancel the cheque and assess whether to turn cheque production off pending sustained employment or close file.  Follow regional practice for file closure procedure including advising them of their right to an appeal. Some clients may need to fill prescriptions prior to file closure.

  3. Record the outcome of the income monitoring procedure.  Ensure the MIS screen ER1 is updated following these steps:
  • Enter initiative code EIMI.  The “File Review” field will indicate client has been contacted. Now record if cheque production was turned off and the amount the cheque was reduced (if any).  The ER1 screen will automatically record the date.  Note: partial earnings must never be deducted when monitoring income.  The only impact to a cheque will be if the client is completely independent of assistance due to the employment income. 

Example: On March 7 staff review the WEM-Report.  A single ETW client has been placed in a job that earns $15 per hour at 40 hours per week.  The start date is March 13 and pay days are bi-weekly (every second Friday).  Cheque cut-off is March 24.  The client will receive net earnings prior to cheque issue.  Based on the hourly wage and hours worked, the client could receive an estimated $960 net income.  The staff contacts the client (via telephone and letter) to verify the job placement and advises the client may not be eligible for further assistance if net income is in excess of IA rates.  The April assistance is signalled to assess eligibility.  The client telephones on March 27 to advise that they deposited a paycheque over $900 in their bank account.  The staff asks the client if the job will be sustainable.  The client states they are satisfied with the stability of the job.  The staff advises the client is not eligible for April assistance and that the client needs to use the employment income to meet support and shelter needs.  The staff then cancels the cheque.  Cheque production is turned off and an activity is created with a due date to review the file prior to next cheque cut-off.  The staff follows regional practices before closing the file.

Case example:

What if the client receives only one week’s pay and the net income is not over the IA rate?

For income monitoring purposes, staff should not deduct the income from the cheque on Issue Day or just prior to cut-off.  The client must be advised of their obligation to report the earnings on the Monthly Report (SD0081) as outlined in the brochure, How to Complete Your Monthly “Report” Form [see Resources for Clients], and to submit it prior to the 5th.  If the net income is less than the IA rate for that family unit, the income will be deducted from the following month’s assistance.  For income monitoring purposes, only income that is in excess of IA rates and results in a client being independent of assistance will result in the client being ineligible.

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Assessing Eligibility - Income In Excess: October 9, 2008
October 9, 2008

Ministry staff are to follow these steps when identifying a client who may be income in excess:

  1. Ensure all income is reported on the Income and Assets Update (INC U) screen on MIS using the appropriate income codes and include comments on the system.

  2. Ensure there is supporting documentation for the income on the client’s file.

  3. Contact the client to advise that the earned and/or unearned income is more than the amount of assistance payable to the family unit.  Ministry staff can send the applicable template letters as follows: Income in Excess Letter – Single Parent with Disabled Child (SD3225), Income in Excess Letter – PWD Earned and Unearned Income (SD3227) and for all other client categories, use Income in Excess – Earned and Unearned Income (SD3224). [see Forms and Letters]

  4. Use office caseload management protocols to follow up with the client’s ongoing eligibility.

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Sole recipient with disabled child - Time Limits and Earnings Exempt: October 9, 2008
October 9, 2008

The months in which a family unit meets the above criteria will not count towards the 24-in-60 Time Limits count.

The $300 earnings exemption is extended to sole recipients with a dependent child, CIHR, special needs or foster child who are unable to work more than 30 hours a week because they are caring for a child with a serious physical or mental condition.

The child's condition alone will not determine if a client is eligible for an earnings exemption.  The impact of the parent's employability is the key factor.

The sole recipient will continue to have employment obligations, but will be exempt from Time Limits.

Medical Form - Child (SD3103) is to be completed by the child's doctor.

Where the sole recipient/caregiver is not the legal guardian (e.g., CIHR), the Medical Report - Child (SD3103) and the Information Sheet (SD3110) are to be given to the client.

The client is responsible for ensuring the legal guardian signs the Medical Report - Child (SD3103).  If the required medical information is on file, the Medical Report - Child (SD3103) is not required.

Staff to fax Medical Form and Questionnaire to Regional Reconsideration Adjudicator for adjudication. [see Forms and Letters]

For single parents that no longer meet the requirements for the exemptions for employment earnings and time limits on assistance, ministry staff are to provide the Sole Recipient with Child with Physical or Mental Condition – No Longer Eligible Letter (SD3268). [see Forms and Letters]

For single parents that are denied the exemptions for employment earnings and time limits on assistance, ministry staff are to provide the Sole Recipient with Child with Physical or Mental Condition – Denial Letter (SD3104). [see Forms and Letters]

Maximum review date is 12 months.

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Assessing Eligibility when Income is Exempt up to Asset Level
December 1, 2003

When a recipient claims a financial award, a review of the family unit’s assets is required.

An eligibility review must be conducted to determine the family unit’s current asset level, including the financial award.

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Identifying PWD Eligibility Date: October 9, 2008
October 9, 2008

In determining the PWD start date, staff must use the eligibility date on the PE1 screen, not the HS file open date. While all PWD clients have an HS file, not all clients with an open HS file are PWD.

The date on the HS file is not necessarily the date of PWD eligibility. Only HS files opened after September 2002 are reliable for the PWD date. The PWD start date may not correlate with the HS file open date if the HS file opened before September 2002. This is due to the PWD Review conducted in September 2002.

If the HS file opened prior to September 2002, further checking needs to be done to confirm the PWD start date. In most cases checking the PE1 screen and the GA file status (particularly the open or closed status in September 2002) will assist in determining the PWD start date.

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Canada Pension Plan Cost of Living Adjustments (COLA): May 26, 2006
May 26, 2006

The February upload of January CPP payment records will correctly capture the annual CPP cost of living increase (COLA) each year.  Overridden amounts are automatically increased by the COLA percentage as part of the February upload.  Staff must not adjust CPP amounts to reflect the COLA increase or the CPP amounts will be incremented twice.

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Canada Pension Plan Retroactive Payments: February 6, 2006
February 6, 2006

Payment Declared

When a retroactive Canada Pension Plan (CPP) payment is declared to the local office, the retroactive CPP payment is to be treated in the same manner as other unearned income in the month received.  No referral to an Investigative Officer (IO) is required.

Staff are to enter the full amount of the CPP payment (including the retroactive portion) on the MIS CPP L screen with an Override Code “1” if the payment record is not displayed there already.  This will affect the next month’s eligibility for assistance.

Staff are to consider the impact of the CPP income on the asset level for the family unit when reviewing eligibility.  Following months will be income- and asset-tested with the file possibly being changed to Medical Services Only (MSO) for these months.

Payment Undeclared

When the CPP data match indicates that a retroactive CPP payment has not been declared, staff are to treat the undeclared retroactive CPP payment in the same manner as any other undeclared unearned income.

Recovery of the over payment is negotiated and all necessary changes to the MIS and Compliance Review (CRV) screens are completed.

Staff review the impact of the retroactive CPP payment on the asset level applicable to the family unit.

In cases where the recipient has the Person with Disabilities designation, this may necessitate changing the file to MSO for the period of ineligibility.  The file should not be closed. [see Related Links – Medical Services Only]

Previous Adjustments

Any overpayments calculated on the basis of the previous policy attributing retroactive CPP payments to prior months are to be reversed.

New calculations based on unearned income in the month received must be completed and notification of these reversals sent to Financial and Administrative Services Branch as soon as possible.

CPP Tax Exemption on Retroactive CPP assigned to Ministry of SD

These procedures must be followed whenever retroactive CPP benefits are received by the ministry on behalf of a client (i.e., the client assigned their retroactive CPP benefits using the ISP 1613 Consent to Deduct form).

  1. Determine if the client is eligible for the CPP Tax Exemption by entering the gross monthly CPP amount on the MIS CPP L screen (the CPP Tax Exemption is automatically calculated).

  2. Determine the number of retroactive months (this can be calculated using the ISP 1613 Consent to Deduct form or alternatively by contacting HRSDC).

  3. Multiply the CPP Tax Exemption amount by the number of retroactive months.

  4. Issue an Imprest cheque to the client using the allowance code 26 and advise the client that these funds are for tax liability on CPP assigned to the ministry.

CPP Class Action Settlement

Any amounts over the asset level are to be treated as unearned income and deducted from the income assistance for the month. 

Clients who have deductions in their income assistance due to an excess cash asset had the opportunity to apply through Doak Shirreff, lawyers for the Class, for a reimbursement of up to $300.  All reimbursements were made before October 29, 2005.

Eligibility for the following months will be assessed based on current income and asset criteria.

NOTE:  The GA file is to remain open and persons maintain their eligibility for Medical Services Only (MSO). When assets are deemed no longer in excess, persons are to resume receipt of income assistance payments.

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Family Maintenance - Adult Passthrough Maintenance Income: September 27, 2006
September 27, 2006

Adult recipients who pass on family maintenance must declare it on the Monthly Report (SD0081) as outlined in the brochure, How to Complete Your “Monthly Report” Form [see Forms and Letters] under All Other Income.  [For Brochure, see Link - Resources for Clients.]

When an adult recipient passes on maintenance, the EAW adds a comment to record the receipt of and passing on of the maintenance. The maintenance is not entered on the recipient’s Income and Assets (INC) screen. 

If the adult child is in receipt of BC Employment and Assistance, the maintenance must be declared by the adult child and entered on their INC screen.

The amount of maintenance that can be exempt for the adult child is calculated in one of two ways:

  • where the court order identifies a specific amount of maintenance for the adult child, use the amount identified in the court order

  • where the court order does not identify a specific amount of maintenance for the adult child, maintenance is divided equally among the number of children in the court order or maintenance agreement

Case Example:

Case 1: 

  • Court order states $600/month for 2 dependent children and 1 adult child

  • A $600 payment is made to a parent on assistance

  • $600 divided by 3 children = $200 per child

  • $200 exempt if passed onto adult child

Case 2:

  • Court order states $600/month for 2 dependent children and 1 adult child

  • A $300 payment is made to a parent on assistance

  • $300 divided by 3 children = $100 per child

  • $100 exempt if passed onto adult child

Case 3:

  • Court order states $600/month for 2 dependent children and 1 adult child

  • A $900 payment is made to a parent on assistance

  • $900 divided by 3 children = $300 per child

  • $300 exempt if passed onto adult child

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Quebec Pension Plan (QPP): February 6, 2006
February 6, 2006

QPP payment information is not included in the CPP data match.  Enter QPP income on the CPP L or AP3 screens.  It will be summed as Income Code 11 on the INC screen.

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Rental Subsidy
December 1, 2003

When a client receives rental subsidy, follow these steps:

  1. Ensure that the client understands that rent subsidies are included in the Monthly Shelter Expenses questions on an application or review.

  2. Request that the client provide verification from the agency providing the rent subsidy.

  3. Do not include the amount of the rent subsidy in calculation of a shelter allowance.

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Students' Assistance: February 8, 2011
February 8, 2011

Follow these steps when determining the amount to exempt:

  • Confirm that the client meets the exemption criteria in policy [see Policy – Students’ Assistance].

  • Request client to provide a copy of the Notification of Assessment from StudentAid BC.

    Note:  Other types of documentation, such as letters from the school’s Financial Aid Office that provide the assessment information, would also be acceptable.

  • Direct client to StudentAid BC or the Financial Aid Office if client does not have any documentation showing the assessment of expected cost.

    Note:  It is recommended that staff use the assessment rather than requesting individual receipts from the client.

  • Review the expense items in the assessment notification.  If daycare costs and/or transportation costs are not included in the assessment and are an additional cost that should be included, they may be added to the assessed cost.

  • The following expenses are considered when determining educational costs:

    • Tuition

    • Books / Supplies

    • Compulsory student fees

    • Reasonable transportation costs

    • Daycare costs

[For more information on education costs, see Resources for Staff – StudentAid BC Policy].

  • Total amount to be exempted should be the total assessed costs.  Any remaining balance of funding received should be considered unearned income.

Example:

A PWD client is starting school in September and receives $2,800 in grants with no student loans.  She is currently registered for two semesters covering September to April.  Each semester has educational costs of $1,300.  Because she is currently registered for two semesters, her educational costs are $2,600.  The amount that will be exempted is $2,600 and $200 will be considered unearned income (grant $2,800 less educational costs $2,600 = $200).  Her next month’s disability assistance will be reduced by $200.

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Therapeutic Volunteer Supplement and Other Mental Health Volunteer Stipends: May 1, 2005
May 1, 2005
  • Clients designated as a Person with Disabilities (PWD) must report any Therapeutic Volunteer Supplement (TVS) or other mental health volunteer payments received on the Monthly Report (SD0081) under “Other,” in the initial month they receive it and any time there are changes (i.e. an increase or decrease) in the amount received.  Clients are to report the name or purpose of the stipend and the amount received (e.g., TVS $50). 

  • Other clients must report any TVS or other mental health volunteer payments each month they receive it on their Monthly Report (SD0081), under “Other.”  Clients are to report the name or purpose of the stipend and the amount received (e.g., TVS $50).

  • Ministry workers may verify with a health authority that a BCEA recipient is receiving the TVS or other mental health payments.  They may verify that payments are received in the amount reported, and for the purposes indicated, by the client, and also in accordance with limits set by health authorities.  Ministry staff may further ask clients to confirm the payments they have received by providing:

    • cheque stubs for volunteer payments received from health authorities or designated agencies, or

    • a letter of confirmation from a health authority or designated agency indicating the amount, purpose and duration of any payments made.

  • If a client is unable to provide either a cheque stub or a letter of confirmation, ministry staff workers may contact the health authority’s case manager for a client to verify what payments (amount and purpose) have been made to that person.  Ministry staff shall enter the code and payment amounts made to the client by the health authority or designated agency using the appropriate exempt income codes.

  • Clients should be advised to consult with health authorities to ensure that any lump sum payments they receive are spread over a period of time such that they do not exceed their allowable asset limits.

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Registered Disability Savings Plan (RDSP): July 20, 2011
July 20, 2011
  1. When a client reports a RDSP disbursement, supporting documentation must be provided.

  2. Once supporting documentation is verified, record the amount on the income screen using income code 4E.  MIS will automatically record this amount on the history screen. 

  3. Confirm that the RDSP indicator on the client’s file has been set to ‘Y’.

[For related information, see Related Link - Assets and Exemptions]

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