Canada Education Savings Grant

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The information contained on this page is technical in nature and is intended for Registered Education Savings Plan (RESP) and Canada Education Savings Program promoters. For general information, visit the RESP section.

Official title: Three Year Time Limit for Payment of CESP Incentives

Information Bulletin

Number:
CESP/PCEE-2007-002
Date:
July 27, 2007
Subject:
Notice #258 - Three Year Time Limit for Payment of CESP Incentives

Purpose

The purpose of this Information Bulletin is to remind Registered Education Savings Plan (RESP) Providers that the Canada Education Savings Program (CESP) will be implementing a three year time limit to request payment of incentives from the CESP in January 2008.

Change

Beginning with the January 2008 processing cycle, the CESP will no longer pay Canada Education Savings Grant (CESG), Canada Learning Bond (CLB) or the Alberta Grant with a transaction date exceeding the 3 year time limit. Transactions submitted after the 3 year period will be processed but will receive a refusal reason of D (Late Transaction) and no basic, additional, provincial grant or CLB will be paid on these transactions.

Details

When requests for grant or bond are not submitted within 3 years of the transaction date, the CESP System will respond to those requests as follows.

If the Trustee submits: 400-11 (CESG request)

Then the CESP System will respond with: RT 900 (D - Late Transaction)

If the Trustee submits: 400-24 (CLB request)

Then the CESP System will respond with: RT 900 (D - Late Transaction)

If the Trustee submits: 400-25 (Alberta Grant request)

Then the CESP System will respond with: RT 900 (D - Late Transaction)

If the Trustee submits: 511-12 (for Primary Caregiver Information Transaction)

Then the CESP System will respond with: RT 800 (error code 5033 - Late contribution transaction)

Legislative Authority

This 3 year timeframe is stipulated under the Canada Education Savings Regulations.

4(1) The Minister may pay a CES grant in respect of a contribution made to an RESP if …

(b) the trustee submits, at the request of a subscriber under the RESP, an application for the CES grant

(i) for a contribution made after 2004, within three years after the date of the contribution, and

(ii) for a contribution made before 2005, no later than December 31, 2007;

Rationale

The CESP system currently permits RESP providers to submit contribution transactions dating back to 1998. The new three year time limit seeks to advise all RESP Providers to promptly submit requests for incentives. It is intended to ensure that Canadians receive their payments within a reasonable period of time and that they are not held up indefinitely due to administrative delays.

Effective date

Enforcement of the three year time limit will begin with the January 2008 processing cycle.

Questions

Questions on this Information Bulletin should be directed to the CESG Program by e-mail at cesp-pcee@hrsdc-rhdcc.gc.ca, or by calling 1-888-276-3624.

Previous Notices

  • Notice # 150: Transition Guide - May 19, 2005

    Introduced refusal reason D in respect of the 3 year rule.

  • Notice # 152: Canada Education Savings Regulations - June 2, 2005

    Approved regulations setting out requirements of the 3 year rule.

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