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Appendix B. Understanding RDSP refusal reasons

From: Employment and Social Development Canada

Disclaimer: RDSP issuers

The information contained on this page is technical in nature. The target audience are issuers of the:

  • Registered Disability Savings Plan (RDSP)
  • Canada Disability Savings Grant (CDSG)
  • Canada Disability Savings Bond (CDSB)

For general information, visit the RDSP page.

On this page

Alternate formats

A PDF version of the Registered Disability Savings Plan provider user guide is available on the index page.

List of acronyms
CDSP
Canada Disability Savings Program
CRA
Canada Revenue Agency
DTC
Disability tax credit
ESDC
Employment and Social Development Canada
ITS
Interface transaction standards
PCG
Primary caregiver
RDSP
Registered Disability Savings Plan
RT
Record type
SIN
Social insurance number
SIR
Social insurance registry

Introduction

Employment and Social Development Canada (ESDC) is responsible for the administration of the:

  • Canada Disability Savings Grant, also known as the grant
  • Canada Disability Savings Bond, also known as the bond

The Canada Disability Savings Program (CDSP) system provides the delivery mechanism and necessary system supports for the effective administration of the grant and bond.

This section explains the Refusal Reasons received in response to financial requests for the grant or bond when the CDSP system processes a financial transaction but does not award full benefits. The section also describes means to resolve/reprocess transactions that have been allocated a refusal reason by the CDSP system.

For additional technical information, consult the Interface Transaction Standards (ITS).

B.1 Refusal reasons

This section provides information to assist in understanding refusal reasons. For additional technical information, consult the ITS.

B.1.1 What is a refusal reason

Refusal reasons indicate why transactions requesting grants or bonds, which met all formatting rules and were processed by the system, did not receive a full grant or bond payment.

B.1.1.1 How are refusal reasons reported to financial institutions

The CDSP system reports refusal reasons in the 66-67 position of the 901-record type (RT) provided at the end of each reporting period. This is applicable to the:

  • grant request submitted through an RT 401-01
  • bond request submitted through an RT 401-05

B.1.1.2 Refusal reasons differ from error codes

If the CDSP system cannot process a Registered Disability Savings Plan (RDSP) transaction sent by a financial institution, due to an error in the transaction information, the transaction is rejected. In these cases, an RT 801 transaction with an error code indicating why the transaction was not processed is provided. This information is available in the error file report, which references the original transaction identifier along with the name of the field in error. These error codes should be investigated and new transactions with the corrected information resubmitted.

Transactions successfully processed by the CDSP system will not generate error codes. If a transaction is processed but the full amount of grant or bond is not paid, a refusal reason will be generated and reflected in the RT 901.

B.1.1.3 Using this section

This section lists the following information for each incentive.

  • Refusal reason codes and a detailed explanation for each code
  • How to resolve or better understand what caused the refusal
  • A referral to an appropriate point of contact for situations where further investigation may be required to resolve the issue

The points of contact referred to in this section are:

  • Client Services: 1-866-204-0357
  • Canada Revenue Agency (CRA)
    • 1-800-959-8281 English
    • 1-800-959-7383 French

B.1.2 Refusal reasons explanation

Table 1: Refusal reasons
Refusal reason RT Explanation Resolution
Maximum current entitlement of grant/bond paid 01 All the beneficiary's grant/bond entitlement, including any carry-forward entitlement, has been paid out for the calendar year in which the contribution or bond request was made. This refusal reason is also generated when a bond request is processed with zero bond payment because the income level of the beneficiary/primary caregiver (PCG) exceeds the maximum. Generally, no action is required. If the grant or bond paid does not match the expected amount, investigate, and contact issuer support for more information if required.
Lifetime contribution limit exceeded 02 The total number of contributions (including rollovers) for a beneficiary has exceeded the $200,000 contribution limit. Any subsequent contributions made after this limit is reached are refused the grant. Investigate what caused the total contribution amount to exceed $200,000 and determine if any contributions were reported incorrectly. If there is a discrepancy in the contribution amount(s), submit a contribution correction with the correct amount. If a discrepancy exists in the beneficiary's lifetime contribution amount, contact issuer support for more information.
Lifetime limit exceeded 03 The beneficiary has received the maximum lifetime grant of $70,000 or for the bond, $20,000. No action is required.
Age of beneficiary 04 The transaction date of the contribution is later than December 31st of the year in which the beneficiary turned 49. No further action is required as grants will not be paid after the end of the year in which the beneficiary turned 49.
Specimen plan not valid 05 The specimen plan reported on the bond request no longer has a valid status in the CDSP system. To be valid, a specimen plan must have a status of "registered," "under review," "ceased" or "revoked." This refusal reason only occurs during the annual resubmission of an active bond request. Contact issuer support to verify the status of the specimen plan reported on the bond request.
No grant requested 06 Grant was not requested on a contribution as the grant requested flag was set to "No." Confirm that grant was to be requested for the contribution and if yes, submit a contribution correction transaction for the same amount as the original contribution, and ensure the flag is set to "Yes."
Social insurance number (SIN) not usable 08 The SIN reported on the contribution requesting grant or bond has been flagged as "not usable" by the social insurance registry (SIR). A SIN can be flagged for a number of reasons, and if the contract holder has questions about the reason, they should contact SIR. If the beneficiary's SIN is unusable because they have a new SIN, resubmit the bond request or submit a contribution correction using the new SIN.
Invalid beneficiary SIN 10 The SIN used on the annual resubmission of a bond request is no longer valid as it has been linked to a new SIN. Contact the contract holder to validate the SIN and if required obtain the beneficiary's new SIN and resubmit a bond request using the updated SIN if applicable.
Contract not registered 19 A grant or bond request has been submitted for a contract that does not have a status of registered. Use the contract status report to determine why the contract is not registered and resubmit the contract registration package if applicable. If it is not clear why the contract was not registered, contact issuer support.
Last bond payment under this application, new 18 or over, bond request required 21 This is a warning message to submit a new bond application request because the beneficiary is in his or her 18th year. If no, 18 or over application is submitted bond will no longer be paid. Request that the holder complete a new 18 or over bond application and resubmit the request.
Bond request is not/no longer designated to attract bond for the beneficiary 22 The original bond request submitted is no longer active. Notify the holder and ask if they would like to continue receiving bond. If yes, submit a new bond request to reactivate the bond.
Contract status conditions for adjustment of payment not met 24 A correction has been submitted on a contract that has a status of closed or deregistered. Determine if the contract has correct status and take corrective action. Contact issuer support if required.
Bond resubmission date is not within issuer approval dates 26 The annual resubmission of an active bond request occurred after the cessation date of the specimen plan. Verify the specimen plan eligibility with CDSP issuer support and then resubmit the bond request with a date which is within the specimen plans approved period. No action is required as the contract is closed or transferred when the specimen plan is no longer approved.
Beneficiary is a non-resident 29 The beneficiary is not a Canadian resident as of the day the transaction occurred. Refer the holder to the CRA to confirm the beneficiary's residency status as of the transaction date.
Beneficiary Disability Tax Credit (DTC) eligibility not confirmed 30 DTC eligibility has not been confirmed by CRA for the beneficiary in the year in which the transaction occurred. Refer the holder to the CRA to confirm DTC.
Other 99 Used only in special cases. Information provided as these cases occur.

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