Two-Year Financial Independence

Procedures

Verification: December 1, 2008

Special Circumstances: April 3, 2006

Application of Discretion: January 18, 2006

Assessing Financial Independence: December 1, 2008

Verification: December 1, 2008

December 1, 2008

The following are examples of documents that may be used to verify financial independence:

Pay records or letter from employer(s) verifying employment income and period of employment
Records of Employment
T4 slips or Canada Revenue Agency, Notice of Assessment for the required time period
Canada Pension Plan (CPP) Statement of Contributions

Note: Obtaining a CPP Statement of Contributions from the Human Resources and Social Development of Canada (HRSDC) may take 2-3 weeks. During Stage 1 of the application process, ministry staff advises the applicant of the documentation requirements and if necessary, the applicant requests their CPP Statement of Contributions. [see Resources for Clients]

Ministry staff on behalf of the applicant (with written or verbal consent) may contact HRSDC online to request a CPP Statement of Contributions to be mailed to the applicant. [see Contacts]

Examples of Documents or Evidence

While not exhaustive, the following table lists examples of documents or evidence that may be used to confirm circumstances under which an applicant is exempt from the two-year financial independence requirement.

Table: Verification of Exemptions

Exemption	Examples of Documents or Evidence
Medical conditions, including pregnancy	Note or letter from, or a telephone conversation with, a medical practitioner or nurse practitioner confirming the medical condition and duration
Homemaker supported by spouse for at least two years or a portion thereof	Income tax statements, tenancy documents, shared mortgage/rental agreements
Incarcerated for at least six months during the two years immediately prior to application	Documents or letters from the corrections institution, or a telephone conversation with the institution, confirming the period of incarceration
In the care of, or had a youth agreement with, MCFD upon turning 19 years of age	E-mail or letter from the social worker, or a telephone conversation with an official of the relevant organization, confirming eligibility
Separated from an abusive spouse or fleeing from abuse	Confirmation from social worker, police, or transition house
Granted a post-secondary certificate, diploma, or degree	Certified copy of the educational credential (diploma, degree, certificate)

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Special Circumstances: April 3, 2006

April 3, 2006

Marital/Spousal Breakdown – When files are split because of marital or spousal breakdown, neither individual has to reapply or meet the financial independence requirement unless there is at least a two-month interruption in assistance.

Applicant Supplies False Information – Applicants who supply false documents to satisfy the financial independence requirement and who do not otherwise meet this requirement should be denied further assistance. To address the issue of past overpayment to the applicant, a referral to Prevention and Loss Management Services, should be done on the Fraud Allegation Report (FAR) System. [see Systems Instructions]

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Application of Discretion: January 18, 2006

January 18, 2006

Procedures for the application of discretion

If the applicant (and the applicant spouse, if applicable) is not eligible under the two year financial independence criteria and does not belong to one of the exempt categories, determine whether the client’s circumstances warrant the use of discretion to issue assistance.

If it appears that the applicant (or applicant’s spouse, if applicable) could not have achieved two years of financial independence due to factors beyond his/her control and undue hardship would result if the client was denied, the Supervisor may authorize the issuance of assistance.

Comments noting the factors considered in the exercise of discretion and the circumstances of undue hardship must be made. These are to include, or be followed by, an entry indicating the Supervisor’s approval before assistance is issued.

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Assessing Financial Independence: December 1, 2008

December 1, 2008

To determine whether an applicant meets the requirement for two years of financial independence, complete the following procedure. If it is unclear if the applicant meets the requirement a file should be opened pending verification. If during the application it is determined that the applicant does not meet the requirement, a NCM (no case made) may be completed using code 36.

Determine if the applicant (or spouse, if applicable) is exempt from this requirement. [see Policy – Exemptions]
If the applicant is exempt, proceed with assessing eligibility. If not, determine if the applicant meets the criteria of being financially independent.
If the applicant has been financially independent, determine if the applicant has documentation proving financial independence. If so, verify that the documentation is acceptable. If not, request further verification or consider a signed declaration in the absence of verification. [see Procedure – Signed Declaration in the Absence of Verification]
If necessary, verify the applicant’s financial independence.
Complete the questions on the Two-Year Independence Assessment (SD3267)[see Forms and Letters]
Record the results and scan and profile the form to the system.

Case example of when two-year financial independence requirement is met:

James is a 21-year-old single man who has never been on assistance before. In 2000, he worked more than 840 hours and earned more than $7,000. In 1999, he worked for $7.15 per hour while he was in school and earned $6,616.45.

James meets the financial independence requirement because he worked over 840 hours in each of two consecutive years. To calculate the number of hours he worked in 1999, his gross income of $6,616.45 is divided by his hourly wage of $7.15, which works out to just over 925 hours.

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