Promoter Tools Updates from Budget 2010

Disclaimer: RESP promoters

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: Promoter Tools Updated as a Result of the 2010 Federal Budget

Information Bulletin

Number:
PCEE/CESP-2011/12-001-432
Date:
April 5, 2011
Subject:
Promoter Tools Updated as a Result of the 2010 Federal Budget

Previous Bulletin

This Information Bulletin updates the Information Bulletin PCEE/CESP-2010/11-003-399 dated July 23, 2010.

Purpose

The purpose of this Information Bulletin is to inform Promoters and Trustees about updates to Canada Education Savings Program (CESP) Promoter tools as a result of measures announced in the 2010 Federal Budget.

Income Thresholds

Overview

Consequential amendments have been made to the Canada Education Savings Act (CESA) to ensure that eligibility for the Additional Canada Education Savings Grant (Additional CESG) is aligned with the income thresholds used to determine eligibility for the Canada Learning Bond (CLB), as per the Income Tax Act (ITA).

Updated Promoter Tools

Due to the above changes, the RESP Provider User Guide (Chapters 1-1, 2-2 and appendix B), the InfoCapsules (5, 10, 11 and 14) and the CESG-CLB Quick Facts have been updated and are available for download on the Promoter tools page.

Previous Information Bulletin

Income thresholds were first revised in July 2010 when amendments introduced in the 2010 Federal Budget came into force. These thresholds were indexed again for 2011 as reported in the Information Bulletin PCEE/CESP-2010/11-005-419 dated January 25, 2011.

Provincial Payments into RESPs

Overview

Under previous legislation, provincial initiatives that are not administered by the federal government, pursuant to an agreement entered into under section 12 of CESA, had to be prescribed by regulations in order to be treated as provincial programs.

The 2010 Federal Budget clarified that all payments made to a Registered Education Savings Plan (RESP) through a program, funded directly or indirectly by a province, will be treated in the same way as federal grants and bonds, and will therefore not attract or reduce federal grants and bonds themselves.

The current definition of a "designated provincial program" under subsection 146.1(1) of the Income Tax Act (ITA) has been amended as follows:

  1. a program administered pursuant to an agreement entered into under section 12 of the Canada Education Savings Act, or
  2. a program established under the laws of a province to encourage the financing of children's post-secondary education through savings in registered education savings plans.

Updated Promoter Tools

Due to the above changes, the RESP Provider User Guide (Chapters 1-1, 1-2, 1-3, 1-4, 2-1, 2-2, 2-3, 2-4, 3-2, appendix A and appendix C) and the InfoCapsules (1, 4, 15, 17, 18 and 19) have been updated and are available for download on the Promoter tools page.

Additional Updates

Ongoing

As additional revisions to the RESP Provider User Guide and InfoCapsules are implemented on an ongoing basis, please consult the Promoter tools page for the most recent versions.

Contact Us

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

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