Notice #845B – British Columbia Training and Education Savings Grant (BCTESG) Transfer Policy: Questions & answers
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Date: December 05, 2019
Subject: Questions and answers regarding the BCTESG Transfer Policy
Questions and answers
Q1. What is the “BCTESG Transfer Policy”?
A1. The “BCTESG Transfer Policy” is a new policy that provides additional flexibility to subscribers by removing the requirement to transfer amounts of the BCTESG in the same proportion as other property in the Registered Education Savings Plan (RESP) that is required to be proportionally transferred.
Q2. When will the BCTESG Transfer Policy come into effect?
A2. The new policy comes into effect as of June 15, 2020.
Q3. Are promoters required to have their systems updated by June 15, 2020?
A3. Promoters are expected to have processes or procedures in place in the absence of system changes.
Q4. Does this mean that a non-offering BCTESG promoter can now accept the BCTESG in a transfer?
A4. No. The receiving promoter must continue to have a valid agreement with ESDC to offer the BCTESG in order to accept the BCTESG as an eligible transfer. This requirement has not changed.
Q5. Please provide an example for calculating the proportion of amounts to be transferred in a partial transfer if the relinquishing RESP contains the BCTESG.
RESP account balances:
(Basic and Additional)
|Assisted Contributions||Unassisted Contributions||Fair Market Value|
Requested funds transfer: $1,960 (leaving behind the BCTESG and CLB)
Total value, less BCTESG and CLB: $7,000 ($8,700 FMV – $1,200 BCTESG – $500 CLB) Transfer as a proportion of the adjusted total value: $1,960 / $7,000 = 28%
The promoter must then use the calculated percentage (28%) to determine the amount of each notional account to transfer.
Accumulated Income x 28% = $322 Assisted Contributions x 28% = $1,260 Unassisted Contributions x 28% = $0 CESG (Basic and Additional) x 28% = $378 Total transferred = $1,960
Q6. Can a subscriber now request to transfer only the BCTESG and leave other notional amounts behind in the relinquishing RESP?
A6. Yes, it would be possible to transfer only an amount of BCTESG, as long as the conditions for an eligible transfer are met.
Q7. Can the subscriber choose to leave the BCTESG behind in the relinquishing RESP even if the receiving promoter offers the BCTESG?
A7. Yes, the subscriber can choose to leave the BCTESG behind as it would not be required to be transferred in the same proportion as the other notional accounts.
Q8. When will promoters be required to use a new transfer form?
A8. ESDC intends to provide six months’ notice before the mandatory use date of a revised transfer form, once it has been finalized and issued via a new information bulletin.
If you have any questions regarding this information bulletin, please contact us by e-mail at email@example.com or by telephone at 1-888-276-3624. Our hours of operation are from 8 am to 5 pm Eastern Time.
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