Appendix F. Registered Education Savings Plan provider user guide – Understanding refusal reasons

F.1.1. What is a refusal reason

Refusal reasons show why transactions requesting grant or bond, which met all formatting rules, did not receive full grant or bond payment. Each refusal reason has a corresponding single-character code.

F.1.2. How are refusal reasons reported to promoters

The CESP system reports refusal reasons in the following 3 locations of the record types (RT) 900 and 911:

1. transaction position 67 for Basic CESG and CLB
2. transaction position 174 for Additional CESG transactions
3. transaction position 45 for BCTESG transactions

F.1.3. How does a refusal reason differ from an error code

In some instances, the CESP system may reject some transactions sent by promoters. This will happen when the CESP system cannot process an RESP transaction, due to an error in the transaction information. In these cases, the promoter will receive a corresponding RT 800 transaction with an error code. This error code will show why the CESP system did not process the transaction. Promoters must investigate error codes and resubmit new transactions with the corrected information.

Transactions successfully processed by the CESP system will not generate error codes. However, a processed transaction can receive a refusal reason in the RT 900 or RT 911 transactions. This would happen if the CESP does not pay the full amount of grant or bond for a transaction.

F.1.4. Using this appendix

Each incentive has its own set of refusal reasons. This appendix lists the following information for each incentive:

• refusal reason code
• ITS description for each refusal reason
• a detailed explanation for each refusal reason
• how to resolve or better understand what caused the refusal

Contact the CESP if the information provided in this appendix does not answer your questions about specific refusal reasons.

F.1.5. Transaction records

The following transaction records are referenced in this appendix for each incentive:

• refusal reasons: recorded in the RT 900 and RT 911. Promoters will find those refusal reasons in the transaction processing report (.pro). The CESP system returns them to promoters at the end of each reporting period
• Basic CESG: CESG requests submitted by promoters through a contribution transaction (400-11). Promoters will find the refusal reasons at position 67 of the RT 900 in the .pro file
• Additional CESG: Additional CESG requests submitted by promoters along with the Basic CESG request through a contribution transaction (400-11). Also, promoters must provide the following information in regard to the PCG/spouse to request the Additional CESG:
  • social insurance number (SIN)
  • surname
  • given name
  • type of PCG/spouse

Promoters will find the refusal reasons at position 174 of the RT 900 in the .pro file.

• CLB: Canada Learning Bond requests submitted by promoter through a CLB request transaction (400-24). Promoters will find the refusal reasons at position 67 of the RT 900 in the .pro file
• BCTESG: British Columbia Training and Education Savings Grant requests submitted by promoters through a BCTESG request transaction (411-40). Promoters will find the refusal reasons at position 45 of the RT 911 in the .pro file

F.2.1. Basic CESG

Refusal reason 1: The CESP system has paid out the Basic CESG room available to the beneficiary for the calendar year that the contribution falls into.

Resolution: None required. Each beneficiary is entitled to $500 of Basic CESG annually ($1,000 if there was carry forward). This error code means that they have received the maximum amount of Basic CESG for the year.

F.2.2. Additional CESG

Refusal reason 1: The CESP system refuses a contribution requesting Additional CESG for 1 of the following reasons:

• the individual PCG reported on the contribution has a high income level as per the Canada Revenue Agency (CRA). Therefore, the CESP system cannot pay Additional CESG to the beneficiary
• the individual PCG reported on the contribution has either a mid (10%) or low range (20%) income level. Also, the beneficiary has received all the Additional CESG for that year based on the income level

Resolution: None required as the CESP system paid all the Additional CESG available to the beneficiary for the year.

F.2.3. CLB

Refusal reason 1: The beneficiary has already received the CLB payment for the benefit year.

Resolution: None required as the beneficiary has already received their CLB payment for the benefit year the request falls into.

F.3.1. Basic CESG

Refusal reason 2: The total amount of contributions for a beneficiary has reached or exceeded the $50,000 contribution limit. The CESP system will not pay grant on any subsequent contributions a subscriber makes after reaching this limit.

Resolution: The promoter should verify that the total contribution amounts submitted for the beneficiary does not exceed $50,000. They also need to ensure that they did not report incorrectly any contribution amounts. If there is a discrepancy in the contribution amounts, reverse the incorrect contribution and resubmit the correct contribution. If all contribution amounts are correct, then contact CESP for more information.

F.3.2. Additional CESG

Refusal reason 2: The total amount of contributions for a beneficiary has reached or exceeded the $50,000 contribution limit or greater. Once the beneficiary has reached that limit, the CESP system will refuse to pay Additional CESG on any subsequent contributions made after.

Resolution: The promoter should verify that the total contribution amounts submitted for the beneficiary does not exceed $50,000. They also need to make sure that they reported accurately all contribution amounts. If there is a discrepancy in the contribution amounts, reverse the incorrect contribution and resubmit the correct contribution. If all contribution amounts are correct, then contact CESP for more information.

F.4.1. Basic CESG

Refusal reason 3: The transaction date of the contribution is later than December 31 in the year that the beneficiary turned 17.

Resolution: None required. The beneficiary can only receive grant up until the end of the year in which they turn 17.

F.4.2. Additional CESG

Refusal reason 3: The transaction date of the contribution is later than December 31 in the year that the beneficiary turned 17.

Resolution: None required. The beneficiary can only receive grant up until the end of the year in which they turn 17.

F.4.3. CLB

Refusal reason 3: The CESP system is assessing an active CLB request for a payment for a new benefit year. Also, there was an update to the beneficiary’s birth and it is now before January 1, 2004.

Resolution: Contact the subscriber to verify the beneficiary’s birth date.

F.4.4. BCTESG

Refusal reason 3: The transaction date for the BCTESG request (411-40) does not fall into any of the following ranges:

• child born in 2006: the transaction date of the BCTESG request must be between August 15, 2016 and August 14, 2019
• child born in 2007 or 2008: the transaction date of the BCTESG request must be between August 15, 2015 and August 14, 2018
• child born in 2009: the transaction date of the BCTESG request must be between these 2 dates:
  • August 15, 2015 or the day the beneficiary turns 6 (whichever is later), and
  • August 14, 2018 or the day before the beneficiary turns 9 in 2018 (whichever is later)
• child born in 2010 or later: the transaction date of the BCTESG request must be between the child’s 6th birthday and the day before the child’s 9th birthday

Resolution: Verify the transaction date of the request and the age of the beneficiary.

F.5.1. Additional CESG

Refusal reason 4: The PCG, spouse and/or beneficiary information submitted does not match with the corresponding information at the CRA on the contribution.

Resolution: Contact the subscriber to request that the PCG call the CRA. They should confirm all relevant information is up to date and that it is the same information provided to the promoter. Once the subscriber has confirmed the CRA information is up to date, submit a correct PCG/spouse information transaction for the financial transaction that the CESP system has refused. If the promoter has not implemented the PCG/spouse information transaction, you can also reverse and resubmit the original transaction.

F.5.2. CLB

Refusal reason 4: The PCG, spouse and/or beneficiary information submitted does not match with the corresponding information at the CRA on the CLB request.

Resolution: Contact the subscriber to request that the PCG call the CRA. They should confirm all relevant information is up to date and that it is the same information provided to the promoter. Once the subscriber has confirmed the CRA information is exact, resubmit the CLB request with the correct PCG/spouse information.

F.6.1. Basic CESG

Refusal reason 5: The specimen plan named on the contribution is not eligible to receive grant.

Resolution: Contact the CRA to determine the status of this specimen plan.

F.6.2. Additional CESG

Refusal reason 5: The specimen plan named on the contribution is not eligible to receive grant.

Resolution: Contact the CRA to determine the status of this specimen plan.

F.6.3. CLB

Refusal reason 5: The CESP system is assessing an active CLB request for a payment. However, the specimen plan named on the request is no longer eligible to receive CLB.

Resolution: Contact the CRA to determine the status of this specimen plan.

F.6.4. BCTESG

Refusal reason 5: The specimen plan named on the request is not eligible to receive BCTESG.

Resolution: Contact the CRA to determine the status of the specimen plan and resubmit the request if required.

F.7.1. Basic CESG

Refusal reason 6: The grant requested flag is set to “No” for a contribution.

Resolution: Verify if the promoter should have made a request for the grant. If yes, reverse the contribution and resubmit the contribution with the grant requested flag set to “Yes”.

F.7.2. Additional CESG

Refusal reason 6: The promoter did not provide the 4 PCG/spouse information fields for a contribution requesting Additional CESG.

Resolution: Verify if the promoter should have made a request for the Additional CESG on the contribution. If yes, you could add the missing PCG/spouse information on a PCG/spouse information transaction. You could also reverse and resubmit the contribution transaction with the missing PCG/spouse information.

F.7.3. CLB

Refusal reason 6: The grant requested flag is set to “No” therefore, the system considers it a stop CLB request.

Resolution: Confirm that you were supposed to submit this request as a stop CLB. If not, resubmit the CLB request with the grant requested flag set to “Yes”.

F.8.1. Basic CESG

Refusal reason 7: A contribution falls into a year in which the beneficiary turns 16 or 17. Also, the beneficiary does not meet the conditions for the 16/17 rule as per the CESP system. These conditions are:

• contributions totalling $100 in 4 different years, or
• a total of $2,000 in lifetime contributions up to and including the beneficiary’s 15th year

Resolution: No action unless the promoter made an error. Review the contribution history and determine if you have reported accurately all contributions under the beneficiary. If you determine that you did not make an error, you must contact the subscriber to inform them of the refusal. It could happen that the beneficiary has multiple plans and an error occurred at another promoter. If so, they will need to have the other promoter fix the error. Once they confirm the other promoter made a correction, you can resubmit the transaction.

F.8.2. Additional CESG

Refusal reason 7: A contribution falls into a year in which the beneficiary turns 16 or 17 and the beneficiary does not meet the conditions for the 16/17 rule as per the CESP system. These conditions are:

• contributions totalling $100 in 4 different years, or
• a total of $2,000 in lifetime contributions up to and including the beneficiary’s 15th year

Resolution: No action unless the promoter made an error. Review the contribution history and determine if you have reported accurately all contributions under the beneficiary. If you have determined that you did not make an error, you must contact the subscriber to inform them of the refusal. It could happen that the beneficiary has multiple plans and an error occurred at another promoter. If so, they will need to have the other promoter fix the error. Once they confirmed the other promoter made a correction, you can resubmit the transaction.

F.9.1. CLB

Refusal reason 8: The beneficiary is not eligible for a CLB payment for the benefit year for which the subscriber made the request.

Resolution: Contact the subscriber and advise them that the beneficiary will not receive the CLB for that benefit year. This refusal reason indicates that, according to the income information at the CRA, the income level of the PCG is too high to qualify for the CLB. With this refusal reason, the request will remain active for subsequent years. If the PCG believes that they should qualify, the PCG should contact the CRA at 1-800-387-1193 for further information. If the CESP receives updated Canada Child Benefit (CCB) information from the CRA for that benefit year, the CESP system will reassess the request and the CLB will automatically be paid if the beneficiary is now eligible.

F.10.1. Basic CESG

Refusal reason 9: The contribution amount is below the minimum amount of $0.03. This is a requirement to attract grant.

Resolution: None required as contributions must be greater than $0.02 to attract grant.

F.10.2. Additional CESG

Refusal reason 9: The contribution amount is below the minimum amount of $0.03. This is a requirement to attract grant.

Resolution: None required as contributions must be greater than $0.02 to attract grant.

F.11.1. CLB

Refusal reason A: An active CLB request is being assessed for a new benefit year. However, the specimen plan submitted on the CLB request is no longer approved for CLB in the CESP system.

Resolution: Since the specimen plan on the CLB request is not approved for CLB, the promoter should contact the CESP to confirm.

F.12.1. Basic CESG

Refusal reason B: The beneficiary’s SIN reported on the contribution has become invalid in the CESP database because it is linked to another SIN.

Resolution: Contact the subscriber and determine if the beneficiary got a new SIN. If the beneficiary did get a new SIN, submit a beneficiary information transaction record. This will associate the beneficiary’s new SIN to the specimen plan. The promoter must then reverse the contribution and resubmit using the new valid SIN.

F.12.2. Additional CESG

Refusal reason B: The beneficiary’s SIN reported on the contribution has become invalid in the CESP database because it is linked to another SIN.

Resolution: Contact the subscriber and determine if the beneficiary got a new SIN. If the beneficiary did get a new SIN, submit a beneficiary information transaction record. This will associate the beneficiary’s new SIN to the specimen plan. The promoter must then reverse the contribution and resubmit using the new valid SIN.

F.12.3. CLB

Refusal reason B: The beneficiary’s SIN reported on the CLB request has become invalid in the CESP database because it is linked to another SIN.

Resolution: Contact the subscriber and determine if the beneficiary got a new SIN. If the beneficiary did get a new SIN, submit a beneficiary information transaction record. This will associate the beneficiary’s new SIN to the specimen plan. The promoter must also submit a new CLB request with the new SIN to continue receiving the CLB.

F.13.1. CLB

Refusal reason C: CLB request is no longer active in the CESP system.

Resolution: Submit a new CLB request to restart the CLB payments. Restarting the CLB payments will also depend upon satisfying other business rules such as income levels, age of the beneficiary, etc.

F.14.1. Basic CESG

Refusal reason D: There is an issue with the transaction date of the contribution transaction. The transaction requesting Basic CESG has a date that is more than 3 years before the date in the header record (001) of the submitted transaction file.

Resolution: None

Explanation: The promoter must successfully process Basic CESG requests with the CESP system within 3 years. If the promoter submits transactions after 3 years, the CESP system will process them, but it will refuse the payment of grant.

F.14.2. Additional CESG

Refusal reason D: There is an issue with the transaction date of the contribution transaction. The transaction requesting Additional CESG has a date that is more than 3 years before the date in the header record (001) of the submitted transaction file.

Resolution: None

Explanation: The promoter must successfully process Additional CESG requests with the CESP system within 3 years. If the promoter submits transactions after 3 years, the CESP system will process them, but it will refuse the payment grant.

F.14.3. CLB

Refusal reason D: There is an issue with the transaction date of the CLB request transaction. The transaction requesting CLB has a date that is more than 3 years from the date in the header record (001) of the submitted transaction file.

Resolution: The promoter must submit another CLB request for the beneficiary. They must use a transaction date that is within 3 years of the file submission date.

Explanation: The promoter must successfully process CLB requests with the CESP system within 3 years. If the promoter submits transactions after 3 years, the CESP system will process them but it will refuse the payment of the bond.

F.14.4. BCTESG

Refusal reason D: There is an issue with the transaction date of the BCTESG request. The transaction requesting BCTESG has a date that is more than 3 years before the date in the header record (001) of the submitted transaction file.

Resolution: None

Explanation: The promoter must successfully process BCTESG requests with the CESP system within 3 years. If the promoter submits transactions after 3 years, the CESP will process them, but it will refuse the payment of grant.

F.15.1. Basic CESG

Refusal reason E: The beneficiary has received the maximum lifetime allowable amount of CESG (Basic and Additional combined) of $7,200.

Resolution: None required as the beneficiary has received the maximum amount of $7,200.

F.15.2. Additional CESG

Refusal reason E: The beneficiary has received the maximum lifetime allowable amount of CESG (Basic and additional combined) of $7,200.

Resolution: None required as the beneficiary has received the maximum amount of $7,200.

F.15.3. CLB

Refusal reason E: The beneficiary has received the maximum lifetime allowable CLB based on the number of benefit years they were entitled to, up to a maximum of $2,000.

Resolution: None required as the beneficiary has received all CLB payments they could receive based on his entitlements.

F.15.4. BCTESG

Refusal reason E: The beneficiary has received the maximum lifetime allowable amount of $1,200.

Resolution: None required as the beneficiary has received the maximum amount of $1,200.

F.16.1. Additional CESG

Refusal reason F: The beneficiary named on the contribution requesting Additional CESG is tainted. A beneficiary becomes tainted when a grant repayment for a contract the beneficiary is associated to, is submitted with:

• a transaction date on or after March 22, 2004 and
• with a repayment reason of contribution withdrawal, and
• a grant amount is greater than 0

Resolution: Contact the subscriber to determine if they have previously withdrawn contributions from an RESP. If so, this could be the cause the beneficiary is tainted.

F.17.1. Additional CESG

Refusal reason G: A contribution requesting Additional CESG has a transaction date that is earlier than January 1, 2005.

Resolution: The CESP system will only pay Additional CESG on contribution transactions dated on or after January 1, 2005. It could happen that the promoter made a mistake regarding the transaction date of the contribution. If that is the case, reverse the previous contribution and resubmit the new contribution with the correct transaction date.

F.18.1. Additional CESG

Refusal reason H: 1 or more of the following fields do not contain information:

• SIN
• surname
• given name, and
• type of PCG/spouse

Resolution: To receive the Additional CESG, the promoter needs to include the PCG/spouse SIN, given name, surname, and type. If the promoter did not provide this information, they can use an updated PCG/spouse information transaction to add the missing information. They could also reverse the contribution and resubmit with the missing information.

F.19.1. Additional CESG

Refusal reason I: The individual PCG/spouse SIN is not numerically valid. ESDC uses a mathematical formula to determine the validity of the composition of a SIN.

Resolution: Verify that the individual PCG/spouse SIN is 9 digits in length. If required, contact the subscriber to advise that the individual PCG/spouse SIN provided is not correct. If the subscriber provides a new individual PCG/spouse SIN, you will need to update the information. To do so, use either an update PCG/spouse information transaction to change the information or reverse the contribution and resubmit with the new information.

F.20.1. Additional CESG

Refusal reason J: The promoter did not designate the contract as an individual/sibling only contract.

Resolution: The contract reported on the contribution transaction must have the individual/sibling only flag set to “Yes” in the CESP system. To set this flag to Yes, submit a contract information transaction with the individual/sibling only flag set to “Yes”. Once done, reverse and resubmit the previously refused contribution transaction to receive the Additional CESG.

F.20.2. CLB

Refusal reason J: The promoter did not designate the as an individual/sibling only contract.

Resolution: The contract reported on the CLB request has had the individual/sibling only flag updated to “No” since the CESP processed the initial CLB request. The promoter should verify that the contract is not an individual/sibling only contract.

F.21.1. Additional CESG

Refusal reason L: The CRA is unable to find the individual PCG/spouse SIN or agency BN information provided on the contribution transaction requesting Additional CESG.

Resolution: Contact the subscriber. Notify them that the individual PCG/spouse’s SIN or agency’s BN reported on the contribution transaction does not match the information on file with the CRA. Confirm the correct PCG/spouse information with the subscriber. Then, if required, use the update PCG/spouse information transaction to change the PCG/spouse information. You can also reverse the contribution transaction and then resubmit with new PCG/spouse information. Please note that this refusal reason will only apply to CLB requested for beneficiaries under 18 years of age.

F.21.2. CLB

Refusal reason L: The CRA is unable to find the individual PCG/spouse SIN or agency BN reported on the CLB request.

Resolution: Contact the subscriber. Notify them that the individual PCG/spouse’s SIN or agency’s BN reported on the CLB request does not match any PCG/spouse SINs or agency BNs on file with the CRA. If they provide new PCG/spouse information, submit a new CLB request.

F.22.1. Additional CESG

Refusal reason M: According to CRA, the PCG or the PCG associated to the spouse reported on the contribution is not the designated PCG for the beneficiary during the month and year of the transaction date.

Resolution: Contact the subscriber. Notify them that according to the CRA, the PCG reported on the contribution does not have custody of the beneficiary in the year and month the contribution transaction falls. The PCG should then contact the CRA to verify the information they have on record. If they provide a new PCG/spouse information, use an update PCG/spouse information (511-12) transaction to change the PCG/spouse information. You could also reverse the contribution transaction and resubmit with new PCG/spouse information.

F.22.2. CLB

Refusal reason M: According to CRA, the PCG or the PCG associated to the spouse reported on the CLB request is not the designated PCG for the beneficiary for all months from the transaction date of the CLB request to the end of the CLB benefit year it falls into.

Resolution: Contact the subscriber. Tell them that according to the CRA, the PCG reported on the CLB request does not have custody of the beneficiary required for payment. The PCG should then contact the CRA to verify the information they have on record. If required, resubmit the CLB request. If they provide you with new PCG/spouse information, then submit a new CLB request. Please note that this refusal reason will only apply to CLB requested for beneficiaries under 18 years of age.

F.23.1. Basic CESG

Refusal reason N: The SIN reported on the contribution requesting CESG has been flagged as “not useable” by the SIR.

Resolution: Contact the subscriber. Verify the status of the beneficiary’s SIN. If the SIN has been cancelled and they received a new SIN, submit a beneficiary information transaction record. This will associate the beneficiary’s new SIN to the specimen plan. Once you complete this, reverse the previous contribution transaction and resubmit the contribution using the new SIN.

F.23.2. Additional CESG

Refusal reason N: The SIN reported on the contribution requesting Additional CESG has been flagged as “not useable” by the SIR.

Resolution: Contact the subscriber. Verify the status of the beneficiary’s SIN. If the SIN has been cancelled and got a new SIN, submit a beneficiary information transaction record. This will associate the beneficiary’s new SIN to the specimen plan. Once you complete this, reverse the previous contribution transaction and resubmit the contribution using the new SIN.

F.23.3. CLB

Refusal reason N: The SIN reported on the CLB request has been flagged as “not useable” by the SIR.

Resolution: Contact the subscriber. Verify the status of the beneficiary’s SIN. If the SIN has been cancelled and they got a new SIN, submit a beneficiary information transaction record. This will associate the beneficiary’s new SIN to the specimen plan. Once you complete this, submit a new CLB request.

F.23.4. BCTESG

Refusal reason N: The SIN reported on the BCTESG request has been flagged as “not useable” by the SIR.

Resolution: Contact the subscriber. Verify the status of the beneficiary’s SIN. If the SIN has been cancelled and they got a new SIN, submit a beneficiary information transaction record. This will associate the beneficiary’s new SIN to the specimen plan. Once you complete this, submit a new BCTESG request.

F.24.1. Additional CESG

Refusal reason P: The spouse is not in an active relationship with the PCG at the time of the contribution. This is based on the transaction date of the contribution.

Resolution: Contact the subscriber. Tell them that according to the CRA, the spouse reported on the contribution is not in an active relationship with the PCG at the time of the contribution. The PCG should then contact the CRA to verify the information they have on record. If the subscriber provides new PCG/spouse information, you can send the information either with:

• an update PCG/spouse information (511-12) transaction to change the PCG/spouse information, or
• reverse the contribution transaction and resubmit with new PCG/spouse information

F.24.2. CLB

Refusal reason P: The spouse reported is not in an active relationship with the PCG at the time of the CLB request. This is based on the transaction date.

Resolution: Contact the subscriber. Tell them that according to the CRA, the spouse reported on the CLB request is not in active relationship with the PCG at the time of the CLB request. The PCG should then contact the CRA to verify the information they have on record. If required, resubmit the CLB request. If the subscriber provides new PCG/spouse information, then submit a new CLB request. Please note that this refusal reason will only apply to CLB requested for beneficiaries under 18 years of age.