New CESP Application Form – Questions and Answers

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: New CESP Application Form (including SAGES)

Information Bulletin

Number:
CESP/PCEE-2013/14-002-537
Date:
June 5, 2013
Subject:
New CESP Application Form (including SAGES)

Purpose

The following Questions & Answers provide further guidance on the use of the new Canada Education Savings Program (CESP) Application Form.

Individual RESPs

1. Can siblings who are named to separate Individual RESPs, be included on the same CESP application form?

No. One application form cannot be used for siblings who are beneficiaries of different Individual RESPs. Given that each RESP is a separate contract, a separate form must be used for each contract number.

Family RESPs with cousins

2. If there are cousins in a Family RESP, can all beneficiaries be included on one form?

Yes. When there are multiple beneficiaries named to a Family RESP, one form can be used for all beneficiaries, regardless of whether they are all siblings.

However, the additional beneficiary annex (ANNEX A) and the primary caregiver (PCG) and/or custodial parent/legal guardian annex (ANNEX B) need to be completed by the beneficiary's PCG and/or custodial parent/legal guardian. As a result, if there are cousins in the plan, more than one ANNEX A and B is required.

Note: that to receive the Additional CESG and/or the CLB, all beneficiaries named to the RESP must be siblings.

For example:

The subscriber, Jane Smith, opens an RESP for her 4 grandchildren:

Beneficiaries:

  • John Smith (PCG & custodial parent = mother, Mary Smith)
  • Joseph Smith (PCG & custodial parent = mother, Mary Smith)
  • Ann Smith (PCG & custodial parent = mother, Jill Smith)
  • Brian Smith (PCG & custodial parent = mother, Jill Smith)

Result:

In this situation, the following parts of the form must be completed:

  • Jane Smith (subscriber) must complete and sign the main form.
  • Mary Smith (PCG and custodial parent of John and Joseph) must complete and sign:
    • ANNEX A – Additional Beneficiaries
    • ANNEX B – Primary Caregiver and/or Custodial Parent/Legal Guardian.
  • Jill Smith (PCG and custodial parent of Ann and Brian) must complete and sign:
    • ANNEX A – Additional Beneficiaries
    • ANNEX B – Primary Caregiver and/or Custodial Parent/Legal Guardian.

Information about the RESP

3. Who should complete the fields that appear at the top of the main form and each annex, above the numbered sections (such as RESP provider, RESP contract no., etc.)?

Given that procedures for dealing with this section differ depending on the type of organization (i.e., bank vs. mutual fund company), the CESP has removed any descriptors from this section.

Each individual RESP provider can determine how they will complete this section (i.e., completed by the front-line agent, the subscriber, the head office, etc.), and communicate this to their staff. However, this area must be completed and may be verified during a compliance review.

Note: that RESP providers are permitted to pre-populate the "RESP Provider" field with their legal name.

Page following consent and signatures

4. Does the page that follows the consent and signature (containing the privacy statement and definitions) need to be kept in the client file (whether in hard copy or imaged)?

No. The page following the consent and signatures (Sections 6 8; B 6-7; C 5 6) do not need to be kept on file.

Opt-out

5. What should be done if there is a discrepancy in the opt out sections between the main form and ANNEX B (where the subscriber is not also the primary caregiver (PCG) and custodial parent/legal guardian of the beneficiary)?

Since it is the PCG who can designate the RESP for the payment of Additional CESG and the CLB, RESP providers should follow the PCG's instructions in cases of a discrepancy in the opt out section. However, if unsure, it may be advisable to follow up with the client.

6. If an RESP provider only offers the Basic CESG, does the opt out section still have to be completed?

Yes. The opt-out section must be completed even if the RESP provider only offers the Basic CESG. In this case, the subscriber of the RESP can opt out in the main form.

Custodial parent/legal guardian & primary caregiver

7. Can the form be completed ONLY by the custodial parent/legal guardian if the primary caregiver is not available or willing to complete the form?

Yes. If the primary caregiver (PCG) is not available or willing to complete the form, it can be completed only by the custodial parent/legal guardian.

The custodial parent/legal guardian should complete the form, omitting areas dealing with the PCG (i.e.; the Social Insurance Number on the main form and Section B-1 on ANNEX B).

However, note that without the PCG, the beneficiary(ies) cannot receive the Additional CESG and/or the CLB.

SAGES – existing beneficiaries

8. How do you apply for SAGES for existing beneficiaries?

For existing beneficiaries who already have an RESP and for whom a CESP application form has previously been completed (including the old versions), there is no need to complete the full CESP application form again.

To apply for SAGES, the subscriber is only required to complete ANNEX C, which can be treated as a stand-alone form.

SAGES – custodial parent/legal guardian

9. Does the beneficiary's custodial parent or legal guardian need to sign the SAGES Annex (ANNEX C)?

Yes. If the beneficiary's custodial parent or legal guardian is not the subscriber of the RESP, they must sign and print their name in section C-5 of the SAGES annex (ANNEX C).

SAGES – date of application

10. Should the request for SAGES be submitted based on the date the application (ANNEX C) was signed or when residency began?

RESP providers can submit a request for SAGES at any time. The payment of SAGES will be applied retroactively for contributions made on or after January 1, 2013, as long as it is processed within three years after the date of the contribution.

The beneficiary must have met the residency requirements at the time of the contributions.

For example:

  • The beneficiary was a resident of Saskatchewan beginning September 19, 2010.
  • The subscriber opened an RESP with an RESP provider and began making monthly contributions on behalf of the beneficiary, beginning March 1, 2011.
  • The RESP provider began offering SAGES on September 1, 2013.
  • The subscriber completed the SAGES application form (ANNEX C) on December 1, 2013.

Result:

Even though the subscriber did not complete the SAGES application form until December 1, 2013, the RESP provider can submit a request for SAGES for all previous contributions dating back to January 1, 2013 because the beneficiary met the residency criteria for that same period.

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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