RESP Transfer Forms and CESG Transfer Policy

Intent

The accurate administration of transfers is reliant upon promoters communicating and working together. The intent of these forms is to facilitate this collaboration.

Overview

In 2010, the Registered Education Savings Plan Advisory Group (RESPAG) Operations Table formed a "Transfers sub-working group" tasked with the development of a new RESP Transfer Form. The sub-working group, comprised of partners from both the financial industry and Government of Canada, reviewed and recommended changes to the existing form. The first draft of these modifications was presented to the industry in June 2011. Further consultations and amendments were made between September 2011 and January 2012.

Changes/Additions to the Transfer Form

• The Transfer Form (0050) has been amended and separated into three stand-alone forms:
  • Form A (0088),
  • Form B (0089), and
  • Form C (0090).
• Form A is to be completed by the subscriber and sent to the receiving promoter in order to initiate the transfer. The receiving promoter will complete Form B, and send it along with a copy of Form A to the relinquishing promoter. The relinquishing promoter will complete Form C and send it to the receiving promoter along with the funds.
  Form A is intended for use by the public, while Forms B and C are reserved for the offices of the receiving and relinquishing promoters respectively.
• The guidelines have been updated to account for changes to the original RESP Transfer Form (SDE 0050) and Budget 2011. Please see Information Bulletin PCEE/CESP-2011/12-004-448 issued on August 15, 2011, for more information on Budget 2011.

In addition to developing the three separate forms, the following changes have been incorporated.

Form A:

• Area III – Subscriber Authorization and Instructions to Transfer now includes an optional "Dealer/Advisor Code" field.

Forms B and C:

• A new Annex B and Annex C have been developed to accommodate plans with multiple beneficiaries. These annexes will provide the receiving and relinquishing promoters with room to list additional beneficiaries named under the plan.

Form C:

• Area III – Beneficiary Information now provides for "Required" and "Optional" notional RESP account information per beneficiary.
• Area IV – Notional Account Balances and Market Value has been amended to reflect which provincial grant must be recorded in this area. The "Provincial Grant" notional account box has been renamed "Alberta Grants". The transfer of any Québec Education Savings Incentive (QESI) is to be reported on the QESI form.
• Area V – Pending Application for Canada Learning Bond (CLB), CESG, and/or Alberta Grants has been expanded for the purposes of clarity. This section now allows, following a transfer, any pending grants/bond to be transferred using the original transfer Form C and completing Area V. The revised form would then be sent to the receiving promoter along with the funds.

Implications

The HRSDC SDE 0088 (Form A), HRSDC SDE 0089 (Forms B), and HRSDC SDE 0090 (Form C) replace the HRSDC SDE 0050 RESP Transfer form.

Key Dates

All forms will be available on the HRSDC website as of September 19, 2012, and will be mandatory as of March 1, 2013. Any transfers initiated after February 28, 2013, must be completed using all three new forms.

However, all promoters are required to complete Form B (Areas IV and V) on all transfers effective as of this date. This requirement will assist relinquishing promoters to properly administer any Additional CESG that may have been paid into their plan.

Enquiries

For more information, please contact the Canada Education Savings Program by phone at 1-888-276-3624 or by e-mail at cesp-pcee@hrsdc-rhdcc.gc.ca.

Overview

Since the introduction of the Additional CESG, the transfer of the incentive to Promoters who offer only Basic CESG has been considered an ineligible transfer.

Policy Change

Promoters who do not offer the Additional CESG may now accept transfers that include the Additional CESG provided the receiving Promoter agrees to administer the additional requirements of the incentive.

The receiving Promoter must ensure that:

• the beneficiaries named under the receiving contract are siblings;
• any additional beneficiaries named to the RESP after the transfer has taken place are siblings of every other beneficiary named under the RESP; and
• the presence of the Additional CESG in the RESP is reported in subsequent transfers.

Form B and its accompanying guidelines have been updated to reflect this policy change. They also inform the receiving Promoter of their responsibility, upon acceptance of the Additional CESG in the RESP being transferred, to continue to administer the Additional CESG Siblings Rule.

Implications

If the siblings-only requirement is not met at any time, the Promoter holding the funds must repay the lesser of the fair market value of the RESP and the balance of the CESG account to the Canada Education Savings Program (CESP).

Key Dates

This policy is effective as of the release date of the new transfer forms. As mentioned previously, all promoters are required to complete Form B (Areas IV and V) on all transfers effective as of this date, to assist in the administration of this new policy change.

Enquiries

For more information, please contact the CESP by phone at 1-888-276-3624 or by e-mail at cesp-pcee@hrsdc-rhdcc.gc.ca.