Notice #658 – ‘Cancel the Saskatchewan Advantage Grant for Education Savings request’: beneficiary’s change of residency

Official title: Canada Education Savings Program - “Cancel the Saskatchewan Advantage Grant for Education Savings (SAGES) request” with respect to a beneficiary’s change of residency.

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.

Information Bulletin

Number:
CESP/PCEE-2015/16-004-658
Date:
February 01, 2016
Subject:
“Cancel SAGES request” with respect to a beneficiary’s change of residency

Purpose

How to report the repayment of Saskatchewan Advantage Grant for Education Savings (SAGES) made on a contribution when the beneficiary is no longer a resident of Saskatchewan.

Background

Promoters may request a SAGES payment on a contribution only if the beneficiary is a resident of Saskatchewan at the time of the contribution.

Subscribers are responsible for informing their promoters about changes to the beneficiary’s residency status. Consequently, promoters must cease to request new SAGES payments for a beneficiary when a subscriber informs them that a beneficiary no longer satisfies the residency criteria.

In situations where the subscriber informs the promoter of the beneficiary’s change of residency after the SAGES has been paid on subsequent contributions, the SAGES must be repaid on the contributions that no longer meet the residency criteria.

Cancel SAGES request (RT 410-31)

The “Cancel SAGES request” transaction (Record Type (RT) 410-31) was introduced by the government of Saskatchewan to allow promoters to correct administrative errors when requesting SAGES. An example of when this transaction can be used is when a promoter submits SAGES for the wrong beneficiary.

Subsequently, in September 2014, the government of Saskatchewan expanded the use of the “Cancel SAGES request” transaction (RT 410-31) to situations where the subscriber informs the promoter of the beneficiary’s change of residency after SAGES has been paid on subsequent contributions. By doing so, SAGES is repaid to the provincial government while allowing for the grant room to be restored, should the beneficiary become a resident of Saskatchewan again in the future.

Repayment reason: 12 – non-resident and Cancel SAGES request (RT 410-31)

The repayment transaction (RT 400-21) with the repayment reason “12 – non-resident” is used to submit the repayment of incentives (e.g. SAGES, Canada Education Savings Grant, Canada Learning Bond (CLB)) whereby the beneficiary no longer satisfies the residency requirements. However, except for the repayment of the CLB, this repayment transaction results in the loss of the beneficiary’s grant room, which cannot be restored.

Therefore, in order to avoid the beneficiary from losing their SAGES grant room, the “Cancel SAGES request” transaction may now also be used to repay SAGES when promoters are informed of the beneficiary’s change of residency, as described above.

Contact us

If you have any questions on this Information Bulletin, please contact us by e-mail at cesp-pcee@hrsdc-rhdcc.gc.ca or call 1-888-276-3624. Our hours of operation are from 8 am to 5 pm Eastern Standard Time.

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