CESP - RESP Provider User Guide Appendices

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.

Alternate formats

Appendix A: Application forms – Education savings incentives

The following education savings incentives are administered by Employment and Social Development Canada (ESDC):

  • Canada Education Savings Grant (CESG)
    • the amount of CESG (Basic CESG)
    • the additional amount of CESG (Additional CESG)
  • Canada Learning Bond (CLB)
  • Saskatchewan Advantage Grant for Education Savings (SAGES)
  • British Columbia Training and Education Savings Grant (BCTESG)

When applying for these incentives, this appendix assists Registered Education Savings Plan (RESP) providers in completing the required form, entitled Application: Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB).

RESP providers should review eligibility requirements with the subscriber for each incentive before completing these forms. Appendix B: A Quick Reference – Eligibility Criteria for Education Savings Incentives summarizes eligibility criteria for the incentives administered by ESDC.

See Appendix C for a list of acronyms and terms used in this guide.

1. Application form ESDC SDE 0093

1.1. Overview

Application form ESDC SDE 0093, entitled Application: Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB), includes several components that are described in the table below. Each component can be downloaded and completed as required from the forms area on the Resources for RESP Promoters web page.

Component Signatures required Purpose When to use
Main form
  • Subscriber(s)
  • To collect information
    to apply for:
    • Basic CESG
    • Additional CESG
    • CLB
  • This is mandatory for federal education savings incentives.

Annex A

  • This annex must be completed by a custodial parent/legal guardian
  • No signature is required
  • To collect information for additional beneficiaries
  • This can be used to add beneficiaries
    to the application form

Annex B

  • The primary caregiver (PCG) or their cohabiting spouse or common-law partner

    or

  • Custodial parent/legal guardian
  • To collect information from:
    • the PCG or their cohabiting spouse or common-law partner

      or

    • a custodial parent/legal
      guardian.
  • To request the Additional CESG or the CLB when the PCG or their cohabiting spouse or common-law partner is not a subscriber
  • A custodial parent/legal guardian must complete Annex B to provide the beneficiary Social Insurance Number (SIN) when a subscriber is not the custodial parent/legal guardian
Annex C
  • Subscriber(s)
  • Custodial parent/legal guardian (if different than subscriber)
  • To collect information to apply for the SAGES
  • All beneficiaries in the RESP must be siblings
  • All beneficiaries listed on Annex C must be a resident of Saskatchewan at the time of a contribution
Annex D
  • Subscriber(s)
  • Custodial parent/legal guardian (if different than subscriber)
  • To collect information to apply for the BCTESG
  • All beneficiaries in the RESP must be siblings
  • Both the beneficiary and the beneficiary’s custodial parent / legal guardian listed on the Annex D must be residents of British Columbia at the time of application

1.2. Inaccurate information may delay education savings incentive payments

Education savings incentive (incentive) payments may be delayed if inaccurate information is collected on the CESP application form. The CESP system sends monthly reports to RESP providers with either error codes or refusal reasons to identify incentive requests that cannot be paid:

  • Error codes - When the CESP system rejects incentive requests because they contain errors, RESP providers must resubmit these transactions with the correct information. (See Appendix E, Understanding error codes.)
  • Refusal reasons - Incentive payments may be refused for a number of reasons, even when the incentive requests are successfully processed by the CESP system. (See Appendix F, Understanding refusal reasons.)
1.2.1 Beneficiary information

Before paying an incentive into an RESP for a beneficiary, the CESP system validates the following beneficiary information submitted by RESP providers with the Social Insurance Registry (SIR):

  • Social Insurance Number (SIN)
  • given name (first name)
  • family name (last or surname)
  • date of birth
  • sex

All RESP provider requests for incentive payments must include a beneficiary SIN that has been successfully validated by the CESP system at SIR. RESP providers will have fewer rejected transactions and avoid incentive payment delays if they ensure that information collected on application forms matches beneficiary SIN documentation at SIR.

While any subscriber can provide information for one beneficiary on the main form, only the custodial parent/legal guardian of a beneficiary can provide the beneficiary’s SIN. Consequently, RESP providers must collect beneficiary SINs on the application form using one of the following methods:

  • Main form - If a subscriber is also a custodial parent/legal guardian, this person can provide all required information for one beneficiary using the main form. If there are multiple beneficiaries, this person can provide information for the additional beneficiaries using Annex A
  • Annex A - If there are multiple beneficiaries then a custodial parent/legal guardian can complete Annex A to provide information about the additional beneficiaries
  • Annex B - Custodial parents/legal guardians can provide their information and information for one beneficiary using Annex B. If there are multiple beneficiaries, they can provide information for the other beneficiaries using Annex A

If the beneficiaries named in a family RESP are cousins, each group of siblings requires completion of Annex A. It should be noted that the CLB, the Additional CESG, the SAGES and the BCTESG can only be paid into a family RESP if all beneficiaries in the RESP are siblings.

1.2.2. The primary caregiver, cohabiting spouse or common-law partner

An individual primary caregiver (PCG) or, as of 2018, their cohabiting spouse or common-law partner, if applicable, must provide their name and SIN on the CESP application form to request the CLB and the Additional CESG. The individual PCG’s adjusted income is used, in part, to validate eligibility for the CLB and the Additional CESG.

ESDC considers a person to be the individual PCG of a beneficiary if this person is eligible to receive the Canada child benefit (CCB) for the beneficiary.

The Canada Revenue Agency (CRA) calculates a PCG’s adjusted income using, in part, the net income reported on line 236 of tax returns filed by the PCG, and that of their cohabiting spouse or common-law partner, if applicable.

A beneficiary could have more than one individual PCG. For more information, see the shared custody question under heading 1.4.8 Custodial parent/legal guardian and primary caregiver in this appendix.

ESDC considers an organization to be the public PCG of a beneficiary if the organization is entitled to receive payments for the beneficiary under the Children’s Special Allowances Act (CSAA). A public PCG must provide their business number (BN) to request the Additional CESG and the CLB.

PCG type Information required to request the CLB and the Additional CESG Additional notes
Individual PCG
  • PCG SIN
    • SIN
    • given name
    • family name

    or

  • PCG’s cohabiting spouse or common-law partner
    • SIN
    • given name
    • family name
  • An individual PCG is the person eligible to receive the CCB for the beneficiary
  • The CRA sends a CCB notice to the individual PCG every year
Public PCG (Agency)
  • PCG
    • BN
    • agency name
  • A public PCG is an organization that receives the Children’s Special Allowance for the beneficiary

Note that the CLB and the Additional CESG can only be paid into individual RESPs or family RESPs in which all beneficiaries are siblings.

1.3. Checklists for the form ESDC SDE 0093

The CESP application form includes detailed instructions that explain how it should be completed.

Checklists in this appendix will also help RESP providers to ensure that CESP application forms are completed properly. See the following sections in this appendix for common scenarios:

1.3.1. When the parents open an RESP

Use the following checklist only if a subscriber can answer “Yes” to both of these questions:

  • Are you the beneficiary’s PCG or the PCG’s cohabiting spouse or common-law partner?

    This person must provide their name and SIN to request the CLB and the Additional CESG.

  • Are you the beneficiary’s custodial parent or legal guardian?

    The custodial parent or legal guardian must provide the beneficiary’s SIN.

Note: The custodial parent or legal guardian must provide their name and the beneficiary’s SIN in Annex B if this person is not a subscriber. The beneficiary SIN is not required on the main form in this situation.

Main form – Application for the CESG and the CLB

Top of the form

  • Enter RESP provider company name and RESP contract number.

Section 1: Information about the subscriber(s)

  • Explain that a beneficiary’s individual PCG is the person eligible to receive the CCB for the beneficiary.
    • Explain that ‘spouse’ in this section means the cohabiting spouse or common-law partner of the PCG.
  • Enter the family name and given name of the subscriber
    • Check ‘Yes’ for the ‘custodial parent/legal guardian’ question.
      • Only a custodial parent/legal guardian can provide the beneficiary SIN.
    • Check ‘Yes’ for the ‘primary caregiver or their spouse’ question to request the Additional CESG and the CLB.
      • The CRA will use this subscriber’s name and SIN to validate the beneficiary’s eligibility for these incentives.
  • Enter the family name and given name of the joint subscriber, if applicable.
    • Check ‘YES’ for the ‘custodial parent/legal guardian’ question.
      • A joint subscriber, if applicable, must be a spouse or common-law partner of the subscriber.
  • Leave all agency areas blank.
  • Enter the SIN of the subscriber to request the Additional CESG and the CLB.
    • This must be the SIN of the person who checked ‘Yes’ for the ‘primary caregiver or their spouse’ question.

Section 2: Information about the beneficiary

  • Enter information about the beneficiary (family name, given name, date of birth, sex, and SIN).

    This should be entered exactly as it appears on the beneficiary SIN documentation.

  • Enter the total number of beneficiaries for the current application.
  • If applying for more than one beneficiary:
    • check ‘Additional beneficiaries indicated in Annex A’; and
    • complete Annex A to provide information about the additional beneficiaries (see checklist in 1.3.4.).

Sections 3-8

  • Ask subscribers to read Sections 3 through 8.
  • Section 4: Ask subscribers to select the applicable check boxes if required. This section explains possible reasons for not requesting the Additional CESG or the CLB for this RESP.
  • Section 5: Ask subscribers to sign and date the CESP application form.
  • Section 7: Inform subscribers about any applicable provincial incentives.
1.3.2. When an RESP is opened by someone other than a parent

Use the following checklist if a subscriber is not the beneficiary’s parent:

Main form – Application for the CESG and the CLB

Top of the form

  • Enter the RESP provider company name and RESP contract number.

Section 1: Information about the subscriber(s)

  • Enter the family name and given name of the subscriber (and the joint subscriber if applicable).
    • Check ‘No’ in the ‘custodial parent/legal guardian’ check box.
    • Check ‘No’ in the ‘primary caregiver or their spouse’ check box
    A joint subscriber, if applicable, must be a spouse or common-law partner of the subscriber.
  • Leave all agency areas blank.

Section 2: Information about the beneficiary

  • Enter information about the beneficiary. The beneficiary SIN is not required on the main form in this situation.

    A custodial parent/legal guardian must complete Annex B to provide the SIN

  • Enter the total number of beneficiaries for the current application.
  • If applying for more than one beneficiary:
    • check ‘Additional beneficiaries indicated in Annex A’; and
    • complete Annex A to provide information about the additional beneficiaries (see checklist in 1.3.4.).

Sections 3 to 8

  • Ask subscribers to read Sections 3 through 8.
  • Section 4: Ask subscribers to select the applicable check boxes if required.

    This section explains possible reasons not to apply for the Additional CESG or the CLB for this RESP.

  • Section 5: Ask subscribers to sign and date the CESP application form.
  • Section 7: Inform subscribers about any applicable provincial incentives.

Annex B – Primary caregiver, their spouse and/or custodial parent/legal guardian

Top of the form

  • Explain that a beneficiary’s individual PCG is the person eligible to receive the CCB for the beneficiary. Explain that ‘spouse’ in this section means the cohabiting spouse or common-law partner of the PCG.
  • Explain that the beneficiary’s PCG or the PCG’s cohabiting spouse or common-law partner must complete Annex B to request the Additional CESG and/or the CLB when this person is not a subscriber
  • Enter the RESP provider company name, RESP contract number, and a subscriber name. This should match the information provided on the main form.

Section B-1: Information about the primary caregiver or their spouse

  • If the person completing Annex B is the beneficiary’s PCG or the PCG’s cohabiting spouse or common-law partner, enter their name and SIN in Section B-1. If this person is the beneficiary’s custodial parent or legal guardian, check ‘I am also the custodial parent/legal guardian of the beneficiary’.
  • If Annex B is not completed by the beneficiary’s PCG or the PCG’s cohabiting spouse or common-law partner, or the subscriber is not applying for the Additional CESG or the CLB, section B-1 should be left blank.

Section B-2: Information about the custodial parent/legal guardian

  • Enter the beneficiary’s custodial parent/legal guardian name in Section B-2 only if the PCG or their cohabiting spouse or common-law partner is not the custodial parent/legal guardian

Section B-3: Information about the beneficiary

  • If the person completing the form indicated is the custodial parent/legal guardian, enter the information about the beneficiary exactly as it appears on the beneficiary SIN documentation.
  • Enter the total number of beneficiaries for the current application.
  • If applying for more than one beneficiary:
    • check ‘Additional beneficiaries indicated in Annex A’; and
    • complete Annex A to provide information about the additional beneficiaries (see checklist in 1.3.4.).

Sections B-4 to B-7

  • Ask the person completing this annex to read Sections B-4 through B-7.
  • Section B-4: Ask the person completing this annex to select the applicable check boxes if required.

    This section explains possible reasons not to apply for the Additional CESG or the CLB for this RESP

  • Section B-5: Ask the person completing this annex to sign and date the annex.
1.3.3. When an agency opens an RESP

Use the following checklist when a child care agency is the subscriber:

Main form – Application for the CESG and the CLB

Top of the form

  • Enter the RESP provider company name and RESP contract number.

Section 1: Information about the subscriber(s)

  • Leave the subscriber and joint subscriber information areas blank.
  • Enter the agency name and the agency representative’s name.
  • Check ‘Yes’ in the ‘public primary caregiver’ check box
  • Leave the SIN area blank. Enter the 15 character agency BN.

Section 2: Information about the beneficiary

  • Enter information about the beneficiary (family name, given name, date of birth, sex, and SIN).

    This should be entered exactly as it appears on the beneficiary SIN documentation.

  • Enter the total number of beneficiaries for the current application.
  • If applying for more than one beneficiary:
    • check ‘Additional beneficiaries indicated in Annex A’; and
    • complete Annex A to provide information about the additional beneficiaries (see checklist in 1.3.4.).

Sections 3 to 8

  • Ask the agency representative to read Sections 3 through 8.
  • Section 4: Ask the agency representative to select the applicable check boxes if required.

    This section explains possible reasons not to apply for the Additional CESG or the CLB for this RESP

  • Section 5: Ask the agency representative to sign and date the CESP application form as the subscriber.
  • Section 7: Inform the agency representative about any applicable provincial incentives.
1.3.4. Using Annex A to apply for multiple beneficiaries

Use the following checklist when providing information about additional beneficiaries on Annex A:

Annex A – Information about the additional beneficiaries

Top of the form

  • Explain that all beneficiaries listed on Annex A must have a common custodial parent/legal guardian.

    Use a separate Annex A for each group of beneficiaries having a common custodial parent/legal guardian.

  • Enter the RESP provider company name, RESP contract number and a subscriber’s name.

    This should match the information provided on the main form.

  • Enter the custodial parent/legal guardian name.

    The custodial parent/legal guardian must have signed either the main form or Annex B.

Section A-1: Information about the beneficiaries

  • Enter information about the beneficiary (family name, given name, date of birth, sex, and SIN).

    This should be entered exactly as it appears on the beneficiary SIN documentation.

1.3.5. When applying for the SAGES

Note: On March 22, 2017, the Government of Saskatchewan announced in their provincial budget that the SAGES will be suspended as of January 1, 2018, and until further notice. Additional information pertaining to the suspension of the SAGES is provided in information bulletin # 722 sent June 12, 2017, available through the Canada.ca/RESPresources Web page.

Promoters may decide to continue accepting and processing SAGES applications after January 1, 2018. However, no SAGES will be paid.

Use the following checklist when the subscriber is applying for the SAGES:

Annex C – Application for the SAGES

Top of the form

  • Enter the RESP provider company name and RESP contract number.

Section C-1: Information about the subscriber(s)

  • Enter the family name and given name of the subscriber (and the joint subscriber if applicable).

    Leave the subscriber and joint subscriber information blank if the subscriber is an agency.

    A joint subscriber, if applicable, must be a spouse or common-law partner of the subscriber.

  • If the subscriber is an agency, enter the agency name and the name of the agency representative.

    Otherwise, leave the agency areas blank.

Section C-2: Information about the beneficiaries

  • Check ‘Yes’ only if:
    • there is only one beneficiary named in the RESP or all beneficiaries in the RESP are siblings; and
    • all beneficiaries listed on Annex C are residents of Saskatchewan.

    If ‘No’ is selected, the SAGES will not be paid into the RESP.

  • Enter information about all beneficiaries applying for SAGES (family name, given name, date of birth and sex).

    This information should be entered exactly as it appears on the beneficiary SIN documentation and exactly as it was entered in the application form for federal incentives.

  • Enter the date on which each beneficiary became a resident of Saskatchewan.

    Use the date of birth if a beneficiary was a Saskatchewan resident since birth.

  • Enter the total number of beneficiaries for the current SAGES application.
  • If requesting the SAGES for more than 3 beneficiaries:
    • check the box for ‘Additional Beneficiaries’; and
    • use additional copies of Annex C to provide all additional beneficiary information.

Sections C-3 to C-6

  • All individuals signing the annex read Sections C-3 through C-6.
  • Section C-4: The following individuals sign and date the annex:
    • subscriber
    • joint subscriber (if applicable)
    • a custodial parent/legal guardian (if this person is not a subscriber)
    If the subscriber is an agency, the agency representative must sign as the subscriber.
  • A custodial parent/legal guardian must enter his or her name if this person is not a subscriber.
1.3.6. When applying for the BCTESG

Use the following checklist when the subscriber is applying for the BCTESG:

Annex D – Application for the BCTESG

Top of the form

  • Enter the RESP provider company name and RESP contract number.

Section D-1: Information about the subscriber(s)

  • Enter the family name and given name of the subscriber (and the joint subscriber if applicable).

    Leave the subscriber and joint subscriber information blank if the subscriber is an agency.

    A joint subscriber, if applicable, must be a spouse or common-law partner of the subscriber.

  • If the subscriber is an agency, enter the agency name and the name of the agency representative

    Otherwise, leave the agency areas blank.

  • Enter the subscriber address.

    The address must be provided even when the subscriber is not an agency.

Section D-2: Information about the beneficiaries

  • Check ‘Yes’ only if:
    • there is only one beneficiary in the RESP or all beneficiaries in the RESP are siblings; and
    • all beneficiaries listed on Annex D are residents of British Columbia.
    If ‘No’ is selected, the BCTESG will not be paid into the RESP.
  • Enter information about all beneficiaries applying for the BCTESG

    (family name, given name, date of birth, sex and SIN).

    This information should be entered exactly as it appears on the beneficiary SIN documentation and exactly as it was entered in the application form for federal incentives.

  • Verify that each beneficiary listed on Annex D has an eligible birth date to apply for the BCTESG.

    Beneficiaries must be born in 2006 or later to be eligible for the BCTESG.

  • Verify that the application date is acceptable for each beneficiary listed on Annex D.
    • For eligible beneficiaries born in 2006, applications must be completed between August 15, 2016 and August 14, 2019, inclusively.
    • For eligible beneficiaries born after 2006 but before August 15, 2009, applications must be completed between August 15, 2015 and August 14, 2018, inclusively.
    • For eligible beneficiaries born on August 15, 2009 or later, applications must be completed between the beneficiary’s 6th birthday and the day before the beneficiary’s 9th birthday, inclusively.
  • Enter the total number of beneficiaries for the current BCTESG application.
  • If requesting the BCTESG for more than two beneficiaries:
    • check the box for ‘Additional Beneficiaries’; and
    • use additional copies of Annex D to provide all additional beneficiary information.

Section D-3: Conditions for payment of the BCTESG

  • Ask for proof that the custodial parent/legal guardian meets the BC residency requirement. This could be a valid BC Drivers’ License, a BC Identification Card, a BC Services Card or a BC utilities bill. Utility bills must be dated within the last 3 months and list the current address of the custodial parent or the legal guardian and can be for electricity, gas, phone, cable, water or garbage.
  • Indicate only the type of document provided as proof of residency (for example, enter “BC driver’s license”)

Sections D-4 to D-6

  • All individuals signing the annex read Sections D-4 through D-6.
  • Section D-4: The following individuals sign and date the annex:
    • subscriber
    • joint subscriber (if applicable)
    • a custodial parent/legal guardian (if this person is not a subscriber and for whom proof of British Columbia residency has been provided )
    If the subscriber is an agency, the agency representative must sign as the subscriber.
  • A custodial parent/legal guardian must enter his or her name if this person is not a subscriber.

1.4. Answers to additional questions

The following provides additional guidance for completing application form ESDC SDE 0093 and the associated annexes.

1.4.1. Individual RESPs

Can siblings who are named to separate individual RESPs be included on the same ESDC SDE 0093 application form?

No. One CESP 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.

1.4.2. Family RESPs with cousins

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 a custodial parent/legal guardian annex (Annex B) need to be completed by a beneficiary’s custodial parent/legal guardian. As a result, if there are cousins in the plan, more than one Annex A and Annex B is required.

Note that to receive the Additional CESG, the CLB, the SAGES or the BCTESG, all beneficiaries named to the RESP must be siblings.

Example

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

  • 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)

The following parts of the form must be completed:

  • The subscriber, Jane Smith, must complete and sign the main form.
  • The custodial parent, Mary Smith, must complete and sign:
    • Annex B for one of her children; and
    • Annex A to add her other child.
  • The custodial parent, Jill Smith, must complete and sign:
    • Annex B for one of her children; and
    • Annex A to add her other child.

The subscriber must choose not to apply for the Additional CESG and the CLB for these beneficiaries because not all beneficiaries in the RESP are siblings.

1.4.3. Information about the RESP

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, the descriptors from this section have been removed.

It is up to individual RESP providers to determine how best to complete this section and communicate the information 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.

1.4.4. Pages following the consent and signatures sections

Do the pages that follow 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. RESP providers are not required to retain pages that follow the consent and signatures sections of the main form or annexes.

1.4.5. Choosing not to apply for the Additional CESG and/or the CLB

What should be done if there is a discrepancy between information provided in Section 4 of the main form and Section B-4 of Annex B?

Since it is the PCG or their cohabiting spouse or common-law partner who designates which RESP receives the Additional CESG and the CLB payments, RESP providers should follow this person’s instructions if there is a discrepancy between the information provided in Section 4 of the main form and Section B-4 of Annex B. RESP providers may also choose to consult with the subscriber in completing this section.

If an RESP provider offers only the Basic CESG, must Section 4 of the main form still be completed?

Yes. This section must be completed even if the RESP provider offers only the Basic CESG. In this case, the subscriber must choose not to apply for the Additional CESG and the CLB in Section 4 of the main form.

1.4.6. When subscribers add beneficiaries to an existing family RESP

If a subscriber has already completed a CESP application form for the beneficiaries in a family RESP, what parts of the form must be completed if additional beneficiaries are named to the same RESP?

If new beneficiaries are added to an existing family RESP, a new CESP application form must be completed for the new beneficiaries. The original CESP application form that was previously completed and signed cannot be amended to add the new beneficiaries.

1.4.7. Total number of beneficiaries

What should be entered as the total number of beneficiaries on the main form, Annex B and Annex C? Is it the total number of beneficiaries in the RESP, or is it the number of beneficiaries for whom the subscriber is currently submitting an application?

The total number of beneficiaries entered in Section 2 of the main form (and Section B-3 of Annex B and Section C-2 of Annex C if applicable), should be the number of beneficiaries for whom the subscriber is currently submitting an application. This number does not necessarily have to match the number of beneficiaries named in the RESP (for example, in cases where beneficiaries are added to a family RESP after the plan was originally opened).

1.4.8. Custodial parent/legal guardian and primary caregiver

Can the form be completed by only the custodial parent/legal guardian if the PCG or the PCG’s spouse or common-law partner is not available or willing to complete the form?

Yes. If the PCG or the PCG’s spouse or common law partner is not available or willing to complete the form, it can be completed by a custodial parent/legal guardian only.

In such cases, a custodial parent/legal guardian should complete the form, omitting areas that identify the PCG or the PCG’s cohabiting spouse or common-law partner (i.e.; the SIN in Section 1 of the main form and Section B-1 on Annex B).

However, a beneficiary cannot receive the Additional CESG or the CLB if a PCG, or the PCG’s cohabiting spouse or common-law partner, does not complete the form and provide their SIN (or BN for child care agencies). In this situation, the custodial parent/legal guardian must either choose not to apply for both the Additional CESG and the CLB in Section B-4 of Annex B, or in Section 4 of the main form.

Who is the PCG when parents share the custody of a beneficiary?

The CRA may distribute the CCB payments to more than one parent for the same beneficiary if they share custody of the child. For example, a child could alternate every 2 weeks between living with the father and the mother. In this situation, both the mother and the father could be considered to be individual PCGs. When individual PCGs or their cohabiting spouse or common-law partner complete the CESP application form, they are providing their information to validate eligibility for the Additional CESG and/or the CLB. They are also designating the RESP to receive these incentives in trust. RESP providers can include the information of only one individual PCG, or a PCG’s cohabiting spouse or common-law partner, in each electronic request for the Additional CESG or the CLB that they submit to the CESP system.

1.4.9. Pre-filling fields on forms

Can RESP providers pre-fill some of the CESP application form fields before asking their clients to sign a form?

To facilitate completion of the form, RESP providers could choose to pre-fill fields that are collected through the Education Savings Plan (ESP) application process. This includes, for example, the RESP provider, RESP Contract No., subscriber names and beneficiary information.

However, client options must not be pre-selected by RESP providers on application forms. Client options include checkboxes and/or fields that require a client decision or attestation, signatures, and signature dates. In particular, the following fields must be completed by the client:

  • Choosing not to apply for the Additional CESG or the CLB
  • “Yes/No” questions (Section C-2 of Annex C)
  • SK Resident Since” date (Section C-2 of Annex C)
1.4.10. Incomplete application forms

What must RESP providers do if they determine that an application form is incomplete and missing information after it was originally completed and signed?

Once the subscriber (and custodial parent/legal guardian if applicable) has signed the application form, the form should not be altered by RESP providers. RESP providers should ask the person or people who originally signed the form to add the required information and initial any additions or changes made since the form was originally signed. RESP providers must retain these amended forms in their client files.

1.4.11. SAGES request dates

Which date should RESP providers use for a SAGES request - the date the SAGES application form (Annex C) was signed or the contribution date?

RESP providers must use the most recent of the following dates to determine which transaction date to use when submitting a SAGES request to the CESP system:

  • the date that the subscriber completes a SAGES application form
  • the date that the subscriber makes the corresponding contribution

Subscribers have three years after making an RESP contribution to apply for the SAGES by completing and signing the SAGES application form (Annex C). The CESP system sends RESP providers a refusal reason “O” (Late SAGES Request) if a SAGES request transaction date is more than three years after the transaction date of the contribution.

As RESP providers have three years to successfully process a SAGES Request transaction, they must send a file to the CESP system (for processing) no more than three years after the transaction date of the SAGES Request in the file. The CESP system sends RESP providers a refusal reason “D” (Late Transaction) for SAGES Requests processed after this 3 year limit.

Example

On October 14, 2013, a subscriber made an RESP contribution for a beneficiary who is eligible for the SAGES. The RESP provider was in the process of updating their system to offer the SAGES at that time and was not in a position to accept a SAGES application from the subscriber.

To receive the SAGES for this contribution, the subscriber must complete the SAGES application form by October 14, 2016.

If the subscriber completed a SAGES application form for this beneficiary on February 11, 2014, the RESP provider must send a file to the CESP system before February 11, 2017, with a SAGES request that can be successfully processed by the CESP system for the contribution made on October 14, 2013.

Should the SAGES application form be accepted during the suspension period?

Promoters may decide to continue accepting and processing SAGES applications after January 1, 2018. However, no SAGES will be paid.

1.4.12. SAGES requests for existing beneficiaries

How do you apply for the SAGES for existing beneficiaries?

For existing beneficiaries who already have an RESP, there is no need to complete the main part of the application form.

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

1.4.13. SAGES applications and the custodial parent/legal guardian

Does the beneficiary’s custodial parent or legal guardian need to sign the SAGES Annex (Annex C)?

Yes. A custodial parent/legal guardian must sign and print their name in Section C-4 of the SAGES application form (Annex C) if they have not already signed this annex as a subscriber or joint subscriber of the RESP.

1.4.14. BCTESG requests for existing beneficiaries

How do you apply for the BCTESG for existing beneficiaries?

For existing beneficiaries who already have an RESP, there is no need to complete the main part of the application form.

To apply for the BCTESG, the subscriber is required to complete only Annex D, which can be treated as a stand-alone BCTESG application form.

1.4.15. BCTESG application dates

Which date should RESP providers use for a BCTESG request?

RESP providers must enter a transaction date for each BCTESG request that is submitted electronically to the CESP system. Promoters must use the date on which the subscriber submitted the completed BCTESG application form to the RESP provider’s representative as the transaction date in these electronic requests for the BCTESG.

If the subscriber and parent\legal guardian are two distinct people, they may sign and date the application form on different dates. In these cases, the promoter should use the last signature date on the application form as the transaction date for the corresponding BCTESG request transaction.

Will BCTESG applications be accepted if they are completed before or after the required application window?

BCTESG application forms must not be accepted if they are submitted by the subscriber to the RESP provider’s representative outside of the required application window period for each beneficiary. To be eligible for the BCTESG, the beneficiary must be born on January 1, 2006, or later.

For eligible beneficiaries born in 2006, applications must be completed between August 15, 2016 and August 14, 2019, inclusively. For eligible beneficiaries born after 2006 but before August 15, 2009, applications must be completed between August 15, 2015, and August 14, 2018, inclusively. For eligible beneficiaries born on August 15, 2009, or later, applications must be completed between the beneficiary’s 6th birthday and the day before the beneficiary’s 9th birthday, inclusively.

If a subscriber applies for the BCTESG but the custodial parent/legal guardian is only available to sign the application after the beneficiary’s 9th birthday, will the application be valid?

No, for an application to be valid, all signatures must be present and dated prior to beneficiary’s 9th birthday.

Can a promoter accept applications for the BCTESG after August 15, 2015 even if they are not ready to offer the grant? (i.e., no system or agreement in place). If yes, which date is used to apply for the grant?

Unless a promoter has an agreement with ESDC, they are not a promoter of this grant and as such they cannot accept applications for the BCTESG.

1.4.16. BCTESG requests for multiple beneficiaries

If two eligible beneficiaries are named in separate RESPs, can the subscriber complete only one Annex D for both beneficiaries?

Annex D must be completed for each RESP. If two eligible siblings are named in separate RESPs, the subscriber must complete a separate Annex D for each beneficiary.

If several eligible beneficiaries are named in the same RESP, can the subscriber use Annex A to apply for the additional beneficiaries after having completed Annex D for two beneficiaries?

If there are more than two eligible beneficiaries named in the same RESP, the subscriber must use additional copies of Annex D to request the BCTESG for the additional beneficiaries. Annex A cannot be used to request the BCTESG for the additional beneficiaries.

If a subscriber has 2 children, a 6 year old and a 4 year old, can the subscriber complete the form for both beneficiaries without having to go back to the promoter to complete a form when the 4 year old turns 6?

Once the younger beneficiary turns 6, the subscriber will need to complete an application form and provide proof of residency to receive the BCTESG.

1.4.17. BCTESG residency requirements

What is an acceptable demonstration of proof of BC residency for the custodial parent/legal guardian?

Proof of residency must be shown to the RESP providers’ representative at the time of the application. At least one of the following documents must be presented:

  • a valid BC drivers’ license
  • a BC Identification Card
  • a BC Services Card
  • a BC utilities bill

Utility bills must be dated within the last three (3) months and list the current address of the custodial parent or the legal guardian and can be for electricity, gas, phone, cable, water or garbage.

Must the RESP provider’s representative make a copy of the document provided for proof of residency?

No. However, the RESP provider’s representative must provide a description of the proof shown, such as “BC drivers’ license”, in the available space under section D-3.

If the form is not being completed in the presence of the RESP providers’ representative, a photocopy of the proof could be collected in order for the RESP provider to complete this field.

If the subscriber is completing a form at a branch in Ontario and they have proof of residency for BC, how does the agent recognize BC proof of residency?

The BC logo should be visible on all BC Identification cards and other forms of identification should include a BC address for the parent or the legal guardian.

How is proof of residency validated if the office in Ontario receives a BCTESG application form that is mailed into Ontario? (example, subscriber lives in Ontario but parent and beneficiary live in BC)

The promoter is responsible to validate the residency of the custodial parent/legal guardian. They need to establish a process of acceptable practices. For example they could require the guardian to sign and date both sides of a copy of identification used to support the application and forward to the promoter.

If the subscriber already has an RESP with a promoter, their system may have the subscriber’s address showing the custodial parent/legal guardian lives in BC. Is this sufficient for proof of residency?

No, the promoter must request proof of residency to validate BC’s residency requirement. The proof of residency needs to be current. A utility bill or statement used for proof of residency must be within the last 3 months.

1.4.18. BCTESG applications and the custodial parent/legal guardian

Does the beneficiary’s custodial parent or legal guardian need to sign the BCTESG application form (Annex D)?

Yes. A custodial parent/legal guardian that provided the proof of BC residency must sign and print their name in Section D-4 of the BCTESG application form (Annex D) if this person has not already signed as a subscriber in this section.

If the beneficiary’s custodial parent or legal guardian is not a subscriber, is it necessary for the custodial parent or legal guardian to also complete Annex B?

If Annex D is being completed as a “stand-alone” BCTESG application form for an existing RESP, the required information for all beneficiaries will be provided on Annex D and the custodial parent or legal guardian must also sign Annex D. Therefore, in these situations, the custodial parent or legal guardian does not have to complete Annex B to provide beneficiary information.

1.4.19. BCTESG application and subscribers

If the RESP has a subscriber and a joint subscriber, are both required to sign the BCTESG application form (Annex D, section D-4)?

No. While RESP promoters may establish their own internal policy that requires both subscribers to sign, a BCTESG application form can be signed by either the subscriber or the joint subscriber of the RESP.

Appendix B: A quick reference – Eligibility criteria for education savings incentives

This appendix provides an ‘at-a-glance’ summary of the eligibility criteria for each of the education savings incentives administered by Employment and Social Development Canada (ESDC).

Refer to the related chapter in Section 2: Education savings incentives for more detailed information about the following incentives:

  • Canada Education Savings Grant (CESG)
    • amount of CES grant (Basic CESG)
    • additional amount of CESG (Additional CESG)
  • Canada Learning Bond (CLB)
  • Saskatchewan Advantage Grant for Education Savings (SAGES)
  • British Columbia Training and Education Savings Grant (BCTESG)

See Appendix C for a list of acronyms and terms used in this guide.

1. Eligibility for Basic and Additional CESG

  • Does the beneficiary have a valid Social Insurance Number (SIN)?
  • Has the subscriber (together with an RESP promoter) established and registered an education savings plan (ESP) and named a beneficiary?
  • Is the beneficiary a Canadian resident at the time the contribution is made?
  • Is the contribution made prior to the end of the calendar year in which the beneficiary turned 17?
  • If the beneficiary is 16 or 17 years old, have one of the following two conditions been met?
    • A minimum of $100 in annual Registered Education Savings Plan (RESP) contributions has been made in each of any four years (consecutive or not and not withdrawn) before the end of the calendar year the beneficiary turned 15?
      OR
    • A minimum of $2,000 in RESP contributions has been made (and not withdrawn) before the end of the calendar year the beneficiary turned 15?

Note: If all of the questions to this point have been answered in the affirmative, the contribution may be eligible for the Basic CESG .

  • Is the RESP an individual (non-family) plan or a family plan in which all beneficiaries are siblings?
  • Is the contribution made to the RESP on or after January 1, 2005?
  • Does the beneficiary's individual primary caregiver (or their spouse or common-law partner) have a valid SIN or does the public primary caregiver (an agency responsible for a child in care) have a Business Number?
  • Is the beneficiary’s individual primary caregiver eligible to receive the Canada child benefit (CCB)?
  • Is the beneficiary a dependent of an individual primary caregiver whose adjusted income is greater than $47,630, but less than or equal to $95,259? Footnote 1

Note: If all of the questions to this point have been answered in the affirmative, the contribution may be eligible for both the Basic CESG and the 10% Additional CESG.

  • Is the beneficiary a dependent of an individual primary caregiver whose adjusted income is less than or equal to $46,605? Footnote 1

Note: If all of the questions to this point have been answered in the affirmative, the contribution may be eligible for both the Basic CESG and the 20% Additional CESG.

1.1. Eligibility for a "child in care"

If the beneficiary is a "child in care" and meets the eligibility criteria for the Basic CESG, the beneficiary automatically qualifies for the 20% Additional CESG if the agency is receiving payments under the Children's Special Allowance Act on behalf of the beneficiary.

2. Eligibility for CLB

  • Is the child a Canadian resident born in 2004 or later?
  • Does the beneficiary have a valid SIN?
  • Is the child’s individual primary caregiver eligible to receive the CCB?
    OR
  • Did the public primary caregiver receive payments under the Children's Special Allowances Act for a child in care, for at least one month of the benefit year?

Note: If all of these questions have been answered in the affirmative, and based, in part, on the number of qualified children and the adjusted income of the individual primary caregiver, the beneficiary may be eligible for the CLB.

3. Eligibility for SAGES

  • Has the subscriber established an RESP and named a beneficiary?
  • Does the promoter offer the SAGES?
  • Is the RESP either an individual RESP or a family RESP in which all of the beneficiaries are brothers and sisters?
  • Is the beneficiary a resident of Saskatchewan when the RESP contribution is made?
  • Is the RESP contribution made on or before December 31st of the year in which the beneficiary turns 17?

Note: If all of the questions to this point have been answered in the affirmative, the beneficiary may be eligible for the SAGES.

Note: On March 22, 2017, the Government of Saskatchewan announced in their provincial budget that the SAGES will be suspended as of January 1, 2018, and until further notice. Additional information pertaining to the suspension of the SAGES is provided in information bulletin # 722 sent June 12, 2017, available through the Canada.ca/RESPresources Web page.

4. Eligibility for BCTESG

  • Does the promoter offer the BCTESG?
  • Has the subscriber established an RESP and named the beneficiary?
  • Does the beneficiary have a valid Social Insurance Number (SIN)?
  • Is the RESP either an individual RESP or a family RESP in which each beneficiary is a sibling of every other?
  • Were the custodial parent or the legal guardian and the beneficiary residents of British Columbia when the BCTESG application was made?
  • Was the beneficiary born on or after January 1, 2007?
  • Did the subscriber request the BCTESG (via the RESP promoter) on or after August 15, 2015?

Note: If all of the questions to this point have been answered in the affirmative, the beneficiary may be eligible for the BCTESG.

Appendix C: Acronyms and definitions

There are a number of acronyms and definitions that are specific to the Canada Educations Savings Program (CESP), Employment and Social Development Canada (ESDC), and the application for and payment of the related education savings incentives.

An alphabetical listing of acronyms and definitions has been designed to assist readers to quickly identify the meaning of such terms as they are referred to within this guide.

1. List of acronyms

The following acronyms within this list of definitions are used throughout the RESP Provider User Guide.

AIP
Accumulated Income Payment
BCTESG
British Columbia Training and Education Savings Grant
BN
Business Number
CCB
Canada Child Benefit
CCTB
Canada Child Tax Benefit
CESA
Canada Education Savings Act
CESG
Canada Education Savings Grant
CESP
Canada Education Savings Program
CLB
Canada Learning Bond
CRA
Canada Revenue Agency
CSA
Children's Special Allowance
EAP
Educational assistance payment
ESDC
Employment and Social Development Canada
ESP
Education savings plan
GTIS
Government Telecommunications and Informatics Services
ITA
Income Tax Act
ITS
Interface Transaction Standards
MSFT
Managed Secure File Transfer
PCG
Primary caregiver
PIB
Personal Information Banks
RESP
Registered Education Savings Plan
RT
Record type
SAGES
Saskatchewan Advantage Grant for Education Savings
SIN
Social Insurance Number
SIR
Social Insurance Registry

2. List of Definitions

The following terms are used throughout this the RESP Provider User Guide.

Accumulated income payment (AIP)

A payment of the income earned from an RESP, usually paid to the subscriber. It does not include EAPs, payments to a designated educational institution in Canada, transfers to another RESP, or repayments of the CESG, CLB, SAGES and BCTESG. An AIP cannot be made as a single joint payment to separate subscribers.

Additional CESG

An additional amount of Canada Education Savings Grant (Additional CESG) of 10% or 20% on the first $500, or less, of annual RESP contributions made on or after January 1, 2005. The Additional CESG is paid into an RESP on behalf of an eligible beneficiary over and above the Basic CESG and is based on the adjusted income level of the beneficiary’s primary caregiver. See Adjusted Income.

Adjusted income

The adjusted income of a beneficiary’s individual primary caregiver is determined by adding together the net income (line 236 of the income tax and benefit return) for the primary caregiver and his or her cohabiting spouse or common-law partner (if applicable) and adjusting this family net income by deducting any universal child care benefit (UCCB) and registered disability savings plan (RDSP) payments received and adding any UCCB and RDSP amounts repaid. See also individual primary caregiver.

Assisted contributions

Contributions made to an RESP that have attracted CESG payments.

Basic CESG

The amount of CES grant (Basic CESG) consists of a rate of 20% on contributions made to an RESP in respect of a beneficiary. The amount of annual Basic CESG payable per beneficiary is limited to the lesser of accumulated grant room available for the beneficiary or to the Basic CESG annual limit per beneficiary. Basic CESG is paid into the RESP on behalf of an eligible beneficiary up until the end of the calendar year in which the beneficiary turns 17.

Beneficiary

Usually a child, but can be any person named by the subscriber of an RESP who may be eligible to receive the education savings incentive(s) and who may receive EAPs from the RESP . See educational assistance payment (EAP).

Benefit year

A period that starts on July 1st of one year and ends on June 30th of the next year.

Blood relative

The ITA describes a “blood relationship” as one between a parent and child (or grandchild or great grandchild) or between a brother or sister. The subscriber’s niece, nephew, aunt, uncle and cousin do not meet the definition of “blood relative”. An individual is not considered to be a blood relative of himself / herself.

British Columbia Training and Education Savings Grant (BCTESG)

The BCTESG is a provincial incentive designed to help families save for their children's post-secondary education. The incentive is paid under a designated provincial program administered by ESDC through an agreement with the Government of British Columbia. The BCTESG is a $1,200 one-time grant to eligible children born on or after January 1, 2006. When an eligible child turns six years old, the subscriber may be able to apply for the grant.

Business Number (BN)

A 15 character alphanumeric code, assigned by the CRA, that identifies the RESP promoter or agent authorized to submit transactions to the CESP.

Canada child benefit (CCB)

A tax-free monthly payment made to eligible families to help them with the cost of raising children under 18 years of age.

Canada Child Tax Benefit (CCTB)

The CCTB (replaced by the Canada Child Benefit (CCB) on July 1, 2016) was a tax-free monthly payment made to eligible families to help them with the cost of raising children who were under the age of 18. The National Child Benefit Supplement (NCBS) was included in the CCTB for eligible low-income families . See National Child Benefit Supplement (NCBS).

Canada Education Savings Act (CESA)

The legislation that authorizes payment of the Basic and Additional CESG and the CLB.

Canada Education Savings Grant (CESG)

An education savings incentive administered by ESDC. The CESG is based, in part, on contributions made to an RESP on behalf of an eligible beneficiary and is comprised of two components: the amount of CESG grant (Basic CESG) and the additional amount of CESG (Additional CESG). See Basic CESG and Additional CESG.

Canada Education Savings Program (CESP)

The Directorate within ESDC responsible for administering the education savings incentives available to eligible RESP beneficiaries.

Canada Learning Bond (CLB)

An education savings incentive introduced by the Government of Canada in 2004 for children from low -income families, and for children in care, who are born on or after January 1, 2004. The CLB consists of the initial payment and of subsequent CLB payments.

Canada Revenue Agency (CRA)

The federal agency responsible for the administration of RESPs governed under the ITA. The CRA also shares information with ESDC, for the purposes of validating a beneficiary’s eligibility for the Additional CESG and the CLB; or confirming if a beneficiary is a child in the care of an agency receiving payments under the Children’s Special Allowances Act.

CESP system

An ESDC electronic application that supports education savings incentives administered by ESDC. It enables the exchange of electronic information between ESDC and its partners: RESP providers, the Saskatchewan Government, the British Columbia Government, the CRA, and the SIR.

Child in care

A child under the care of an agency (public primary caregiver) that receives payments under the Children’s Special Allowances Act for that child. See public primary caregiver.

Children's Special Allowance (CSA)

A tax-free monthly payment authorized by the Children's Special Allowances Act, for a child who is under the age of 18, who physically resides in Canada, and who is under the care of an agency.

Contributions

Money deposited into an RESP by a subscriber. Contributions may be eligible to attract CESG and SAGES payments. Payments made into an RESP through a designated provincial program are not considered to be contributions and do not attract the CESG. See Designated Provincial Program.

Custodial parent or legal guardian

An individual, department, agency, or institution that has the legal right to make decisions affecting a child's interests, and has the responsibility of taking care of the child.

Designated provincial program

A program defined under the ITA to encourage the financing of children's post-secondary education through savings in RESPs. These programs are established under the laws of a province and administered through an agreement between a province and ESDC or administered by the province itself. Payments made into an RESP through a designated provincial program are treated the same as federal grants or bonds and do not attract federal grants or bonds themselves. These payments are not considered to be contributions to an RESP. See Contributions.

Education savings incentive(s)

Refers to one or all of the education savings assistance programs described within this User's Guide, including the Basic CESG, Additional CESG, CLB, SAGES and BCTESG.

Education savings plan (ESP)

A savings vehicle used to save for a child’s post-secondary education. More precisely, it is a contract between an individual (the subscriber) and the RESP promoter. The subscriber makes contributions that accumulate tax free earnings until withdrawn. The RESP promoter agrees to use the accumulated funds to pay EAPs to one or more eligible beneficiaries designated by the subscriber. See Registered Education Savings Plan (RESP).

Educational assistance payment (EAP)

A payment from an RESP to help an eligible beneficiary cover expenses associated with post-secondary education. An EAP is made up of educational incentive amounts paid into an RESP, as well as income earned on contributions and incentive amounts. The EAP must be included as income on the student's income tax return for the year payments were received.

Effective date

The date that an RESP is opened; also referred to as "the effective date the plan was entered into."

Eligible beneficiary

A beneficiary of an RESP who meets the eligibility criteria required to receive one or more education savings incentives.

Employment and Social Development Canada (ESDC)

The federal department responsible for administering education savings incentives linked to RESPs.

Enrolment (full-time / part-time)

The post-secondary institution determines and defines what constitutes full-time and part-time enrolment. For example, the beneficiary is considered to be attending post-secondary education full-time if the institution considers them to be enrolled full-time.

Error reports

CESP system-generated reports, identifying the field(s) in error, which is sent to the RESP provider when information submitted to the CESP is missing or improperly formatted. Until the RESP provider makes the correction and resubmits the information to the CESP system in a subsequent processing period(s), payment of the incentives will be delayed. There are two types of error reports:

  • RT 800 Error Report indicates that validation has failed or information submitted is missing or incorrectly formatted. The record is rejected and the transaction must be corrected and resubmitted.
  • RT 850 Severe Error Report identifies severe errors and advises that the record is rejected and must be corrected and resubmitted.
Family RESP

An RESP that can have one or more beneficiary . Each beneficiary must be connected by blood or adoption to each subscriber under the plan, or have been connected to a deceased original subscriber. An individual can become a beneficiary of a family RESP only if that individual has not yet turned 21 or if the individual was, just before joining the family RESP, a beneficiary under another family RESP. Contributions to family RESPs can only be made until a beneficiary turns 31.

Government Telecommunications and Informatics Services (GTIS)

The organization, under the management of Public Services and Procurement Canada (PSPC), that facilitates the secure exchange of information, via the internet, between organizations (RESP providers and ESDC).

Grant room

The amount of CESG to which beneficiaries are eligible. Each year that they are eligible to receive the CESG, they accumulate grant room, even if they have not been named as the beneficiary of an RESP.

Group RESPs

RESPs that are operated on a pooling principle, through age cohorts, where the beneficiary named under a contract by a subscriber will receive EAPs when enrolled in a qualifying program. Contributions to a Group plan are calculated by the Foundation's actuary. The amount and frequency of these contributions usually stay the same as long as the beneficiary has not attained 18 years of age.

Since governing rules and requirements may preclude sharing the incentive(s) and/or earnings, it is recommended that readers refer to the individual incentive chapters in Section 2: Education Savings Incentives , under the heading related to Receiving and Depositing the incentive.

Income Tax Act (ITA)

The legislation that governs RESPs – the vehicle used to deposit education savings incentives and save for a beneficiary's post-secondary education.

Individual primary caregiver

The person eligible to receive, but not necessarily in receipt of the CCB for the child, as defined under the ITA. This can be the mother, father, grandparent, or a guardian.

Individual RESP

A plan with only one beneficiary. That beneficiary may or may not be related to the subscriber and can be over 21 when named as a beneficiary. Since subscribers can open plans for themselves, a subscriber can also be the beneficiary of a non-family RESP. Contributions cannot be made after the 31st year that follows the year in which the plan was entered into or an earlier date if amounts have been transferred to the plan from an existing RESP.

Info Source

A document, published by the Treasury Board Secretariat, which provides a description of government organizations, program responsibilities and classes of records with sufficient clarity and detail to enable the public to exercise its rights under the Access to Information Act. Info Source is distributed to libraries, municipal offices and federal government offices across Canada.

Interface Transaction Standards (ITS)

Outlines the procedures for formatting and submitting transactions electronically to the CESP System. The ITS can be downloaded from the ESDC website.

Managed Secure File Transfer (MSFT)

An Entrust®-enabled software recognized by ESDC as a secure method of data encryption.

National Child Benefit Supplement (NCBS)

The NCBS (replaced by the Canada Child Benefit (CCB) on July 1, 2016) was a monthly payment issued to modest-income Canadian families with children. It is part of the CCTB, a non-taxable payment designed to help eligible Canadian families with the cost of raising children. See Canada Child Tax Benefit (CCTB).

Non-family RESP

See individual RESP

Notional account

See RESP account.

Participating RESP promoter

An RESP promoter that is authorized to offer education savings incentive(s).

Post-secondary educational institutions

Educational institutions, recognized by the CRA, offering qualifying educational programs at the post-secondary level. Eligible beneficiaries must attend a qualifying program in a recognized post-secondary educational institution in order to receive EAPs. See Educational Assistance Payment (EAP).

Primary caregiver (PCG)

A person or organization primarily responsible for the care and upbringing of a child. A primary caregiver (PCG) can be an individual or a public entity. PCGs must provide their information and consent to apply for the CLB and the Additional CESG. See individual primary caregiver and public primary caregiver.

Privacy Act

The legislation that provides all individuals present in Canada access to federal information about themselves, and specifies how the government can collect, use, disclose, and retain personal information. It requires that government institutions develop and maintain an index of personal information holdings called Personal Information Banks (PIBs). The Act provides the legal framework for protecting personal information, accessing personal information, data matching, and controlling the use of SINs.

Promoter

The RESP promoter sets up a specimen plan, has it approved by the CRA and enters into contracts (ESPs) with its clients. The promoter is responsible for the registration of the ESPs as well as for the general administration of the RESPs. Promoters include financial institutions, such as banks and credit unions, as well as Group plan dealers. See RESP provider.

Provincial grant

Grant money paid into the RESP under a designated provincial program provincial education savings program administered by ESDC. See Saskatchewan Advantage Grant for Education Savings (SAGES) and British Columbia Training and Education Savings Grant (BCTESG).

Public primary caregiver

The child care departments, agencies, institutions and organizations eligible to receive payments under the Children's Special Allowances Act for a child in their care. See child in Care.

Qualifying contributions

Contributions made to an RESP that, based on available grant room, have the potential of attracting the CESG if all eligibility criteria are met. If and when these contributions actually attract CESG payments, they are then referred to as assisted contributions. See assisted contributions.

Qualifying educational program

A course of study that offers credits towards a degree, diploma or occupational skills certificate at the post-secondary level. The program must last at least three weeks in a row, with at least 10 hours of instruction or work each week. Programs at foreign universities must last at least three weeks, while programs at all other foreign educational institutions must last at least 13 weeks. Qualifying educational programs include apprenticeships, and programs offered by a trade school, CEGEP , college or university. See specified educational program.

Receiving RESP provider

The person or organization holding the RESP into which property is transferred from another plan. Other RESP documents may use the term "transferee" instead of "receiving".

Record type (RT)

A data record that is exchanged between the RESP provider's system and the CESP system. There are a series of record types, each identifying a different type of transaction. All record types are defined in CESP's ITS. See Interface Transaction Standards (ITS).

Registered Education Savings Plan (RESP)

An ESP that has been registered with the CRA. It is a savings vehicle used by individuals to save for children's post-secondary education. Once registered, the plan becomes the repository for education savings incentive payments made on behalf of an eligible beneficiary. Earnings in the plan are tax-sheltered. See education savings plan (ESP).

Reporting periods

The time period, extending from the first to the last day of the same month, over which RESP transactions take place. The RESP promoter has four (4) business days after the reporting period to send files for processing by the CESP system. They cannot include any transactions which occurred after the last day of the reporting period.

RESP account

For tracking purposes, a separate account that identifies the value of each monetary component of the RESP, including contributions, earnings, CESG, CLB, SAGES and BCTESG. Also referred to as a notional account.

RESP promoter

See promoter.

RESP property

All of the assets in an RESP, including contributions, education savings incentives, and earnings.

RESP provider

RESP promoters, trustees as well as service providers that are hired to process electronic transactions. See promoter and trustee.

Saskatchewan Advantage Grant for Education Savings (SAGES)

Provincial grant introduced by the Government of Saskatchewan in 2013 for eligible children residing in Saskatchewan. Saskatchewan matches 10% of RESP contributions in SAGES amounts, up to $250 per beneficiary for each eligible year, until the end of the calendar year in which a beneficiary turns 17. Total SAGES payments per beneficiary could reach $4,500 if the beneficiary is eligible from birth until age 17.

Note: On March 22, 2017, the Government of Saskatchewan announced that the SAGES will be suspended, effective January 1, 2018, until further notice.

Sending RESP provider

The person or organization holding the RESP from which property is transferred to another plan.

Siblings-only family RESP

A family RESP in which every beneficiary is a brother or sister of every other beneficiary.

Spouse

The cohabiting spouse or common-law partner of the primary caregiver, consistent with the meaning assigned in section 122.6 of the Income Tax Act, who has not been separated from the primary caregiver for more than 90 days because of a breakdown in the relationship.

Specified educational program

A specified educational program means a program at a post-secondary school level that is not less than three consecutive weeks in duration and that requires each student taking the program to spend not less than 12 hours per month on courses in the program. See qualifying educational program.

Specified plan

A single beneficiary RESP under which the beneficiary is an individual who meets the conditions and is entitled to a disability tax credit, until the end of the year that is the 31st year following the year in which the plan was opened. After the end of the 35th year following the year in which the plan was entered into, a specified plan must not permit another individual to be designated as a beneficiary under the plan. No contributions (other than a transfer from another plan) may be made to a specified plan after the 35th year following the year the plan was entered into. The plan must be terminated by the end of the 40th year after the year the plan was opened.

Subscriber

The individual who enters into an RESP contract with an RESP promoter, and names one or more beneficiaries for whom he or she will make contributions. Typically, the subscriber is the child's parent or parents, but it can also be a grandparent, another family member, or a family friend. A beneficiary can also be the subscriber of their own RESP.

Termination adjustment transaction

Adjustment transactions, submitted by RESP promoters when they terminate a contract, that inform ESDC of a shortfall (due to losses in the plan) in covering the total grant or bond liability of the contract. ESDC must receive a repayment transaction due to contract termination (transaction type 21) for each termination adjustment transaction. See transaction type.

Transaction ID

A unique identifier assigned to each transaction by the RESP promoter.

Transaction type

The two-digit number following the Record Type (RT), which further categorizes the type of transaction submitted to the CESP system. See record type (RT).

Transfer transactions

Transactions in which the transfer of funds from one RESP to another are recorded. They are reported to the CESP system as RT 400-19 (Transfer In) or as RT 400-23 (Transfer Out) records. See record type (RT).

Transferring RESP provider

The person or organization holding the RESP from which property is transferred (to another plan). Other RESP documents may use different terms instead of "transferring" such as: sending, relinquishing, originating, and transferor.

Trustee

A trust company licensed in Canada to hold funds and hired by the RESP promoter to manage RESP funds. The trustee invests, administers and distributes the money deposited into the RESP as per the promoter's instructions. In some cases, the same organization acts as both promoter and trustee. See RESP provider.

Unassisted contributions

A contribution made to an RESP for which no CESG has been paid.

Appendix D: Forms index

The Registered Education Savings Plan (RESP) Provider User Guide makes reference to a number of forms related to the application for and/or the management of processes associated with the education savings incentives administered by Employment and Social Development Canada.

The attached index lists all of the forms alphabetically and provides the location(s) in the guide where information and instructions pertaining to each form can be found.

1. Alphabetical list of forms

  1. Application: Basic and Additional Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB)
    • Section: 2
      • Chapter: Chapter 2-1: The Basic Canada Education Savings Grant
      • Heading: 7.1. The application process – Basic CESG
    • Section: 2
      • Chapter: Chapter 2-2: The Basic and Additional Canada Education Savings Grant
      • Heading: 8.1. The application process – Basic and Additional CESG
    • Section: 2
      • Chapter: Chapter 2-3: The Canada Learning Bond
      • Heading: 4.1. The application process – CLB
    • Section: 4
      • Chapter: Appendix A: Application forms – education savings incentives
      • Heading: 1. Application form ESDC SDE 0093
  2. Application: British Columbia Training and Education Savings Grant
    • Section: 4
      • Chapter: Appendix A: Application forms – Education savings incentives
      • Heading: 1.3.6 When applying for BCTESG
  3. Application: Saskatchewan Advantage Grant for Education Savings
    • Section: 4
      • Chapter: Appendix A: Application forms – Education savings incentives
      • Heading: 1.3.5 When applying for SAGES
  4. Request for an Educational Assistance Payment (EAP) Over $5,000 from a Registered Education Savings Plan
    • Section: 3
      • Chapter: Chapter 3-2:Post-secondary education and educational assistance payments
      • Heading: 5.1.1 Full-time studies – EAPs in excess of $5,000
  5. Request for an Educational Assistance Payment (EAP) Over $2,500 from a Registered Education Savings Plan
    • Section: 3
      • Chapter: Chapter 3-2: Post-secondary education and educational assistance payments
      • Heading: 5.1.2 Part time studies – EAPs in excess of $2,500
  6. RESP transfer form
    • Section: 1
      • Chapter: Chapter 1-4: Registered Education Savings Plans
      • Heading: 7.3. Recording transfers
    • Section: 3
      • Chapter: Chapter 3-1: RESP transfers and the education savings incentives
      • Heading: 5. Transfer forms
  7. Saskatchewan Advantage Grant for Education Savings Waiver of Repayment
    • Section: 2
      • Chapter: Chapter 2-5: Saskatchewan Advantage Grant for Education Savings (SAGES)
      • Heading: 8.2.2. Waiver of repayment
  8. SIN application form
    • Section: 1
      • Chapter: Chapter 1-4: Registered Education Savings Plans
      • Heading: 2.3. Social Insurance Numbers (SINs)
  9. Subscriber statement for an RESP overcontribution withdrawal of $4,000 or less
    • Section: 2
      • Chapter: Chapter 2-1: The Basic Canada Education Savings Grant
      • Heading: 9.2.1. Order of contribution withdrawals, (box: withdrawals to correct an overcontribution)
    • Section: 2
      • Chapter: Chapter 2-2: The Basic and Additional Canada Education Savings Grant
      • Heading: 10.2.1. Order of contribution withdrawals, (box: withdrawals to correct an overcontribution)
  10. T1E-OVP - Individual income tax return for RESP excess contributions for (year) - Canada Revenue Agency (CRA) form
    • Section: 1
      • Chapter: Chapter 1-4: Registered Education Savings Plans
      • Heading: 5. Overcontributions

Appendix E: Understanding error codes

The Canada Education Savings Program (CESP), within Employment and Social Development Canada (ESDC), is responsible for administering the following education savings incentives available to eligible beneficiaries of Registered Education Savings Plans (RESPs):

  • Canada Education Savings Grant (CESG)
  • Canada Learning Bond (CLB)
  • Saskatchewan Advantage Grant for Education Savings (SAGES)
  • British Columbia Training and Education Savings Grant (BCTESG)

This appendix explains the reasons for error codes, as well as possible means to resolve them, when the CESP system does not accept transactions submitted by RESP providers.

See Appendix C for a list of acronyms and terms used in this guide.

1. Background information

This document provides information to help RESP providers understand error codes. For additional technical information, consult the Interface Transaction Standards (ITS).

The ITS can be downloaded from the Resources for RESP promoters page under the Systems Documentation tab

1.1. What is an error code?

An error code is a 4-digit code, which indicates why the CESP system has not accepted a transaction sent by an RESP promoter.

1.2. How are error codes reported to promoters?

The CESP system reports transaction errors in monthly error report files (.err) sent to promoters. Each rejected transaction generates a corresponding record type 800 transaction that references the original promoter transaction identifier, along with the name of the field in error.

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

If the CESP system cannot process an RESP transaction sent by a promoter, due to an error in the transaction information, the CESP system will reject the transaction. In these cases, the promoter will receive a corresponding record type 800 transaction with an error code indicating 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 will receive a refusal reason if the CESP does not pay the full amount of grant or bond for a transaction.

1.4. Using this document

This document lists:

  • Error codes, the corresponding ITS description and explanations.

2. Error codes

1004 - Transaction is for a future reporting period

Error code 1004 is generated when the transaction date reported in a Record Type (RT) 100, RT 200, RT 400, RT 410, RT 411 or RT 511 is for a future reporting period. The transaction date refers to the date on which the transaction occurred between the subscriber and the promoter.

Resolution:

Promoters report all transactions in a reporting period following the end of the period in which the transaction occurred. Reporting periods extend from the first day of the month to the last day of the same month. Promoters have four (4) business days after the reporting period ends to finalize their files. Transactions, with a transaction date following the last day of the reporting period, should not be submitted.

Should there be system related problems; the promoter is to contact the CESP directly.

1005 - Specimen plan does not exist

Error code 1005 is generated on RT 100, RT 200, RT 400, RT 410, RT 411 or RT 511 when the promoter submits a specimen plan ID that does not exist in the CESP System.

Resolution:

Promoters should first verify the specimen plan ID submitted to the program before any transactions are processed in the CESP System.

1007 - Specimen plan is not approved for CESG

Error code 1007 is generated when the specimen plan has not been approved for CESG. The Specimen Plan must be approved for CESG if:

  • Transaction Type is 11 or 14.
  • Transaction Type is 13 and EAP Grant amount is greater than zero.
  • Transaction Type is 19, 21, 22, 23 and Grant amount is greater than zero.

Resolution:

Only approved specimen plans are accepted in the CESP database. When a promoter secures a new specimen plan ID from the Canada Revenue Agency (CRA), the promoter should contact CESP as soon as possible so the CESP database can be updated accordingly prior to any processing of transactions under the new specimen plan ID.

1008 - Specimen plan is not approved for CLB

Error code 1008 is generated when the specimen plan has not been approved for CLB. The Specimen Plan must be approved for CLB if:

  • Transaction Type is 13 and EAP CLB amount is greater than zero.
  • Transaction Type is 19, 21, 22, 23 and CLB amount is greater than zero.
  • Transaction Type is 24.

Resolution:

Only approved specimen plans are accepted in the CESP database. When a promoter secures a new specimen plan ID from the CRA, the promoter should contact CESP as soon as possible so the CESP database can be updated accordingly prior to any processing of transactions under the new specimen plan ID.

1010 - Contract is not Individual / Sibling only

Error 1010 is generated when a RT 400-24, RT 410-30, RT 411-40 and/or RT 511-12 contract is not 'Individual Sibling Only'.

Resolution:

The RT 100 should be submitted/resubmitted for these contracts with an Individual Sibling Only Flag of '1' to the Program. If the RT 100 was never submitted to the CESP system, the contract creation date can be used as the contract transaction date as long as, the contract held an individual sibling only status upon account creation. If an RT 100 has already been submitted, the resubmission of this contract record with the individual sibling only flag of '1' requires a current version status. In order for a contract record to obtain a current version status, the contract date used should be greater or equal to the date previously reported. All financial transactions that previously received error code 1010 can now be resubmitted along with the RT100 resubmission(s). Note that financial transactions with a transaction date that precedes its associated contract transaction date will not qualify for payment.

1011 - Sender is not authorized to submit transactions with CESG content

Error code 1011 is generated because senders must be authorized to submit transactions with CESG content if:

  • Transaction Type is 11 or 14.
  • Transaction Type is 19, 21, 22, 23 and grant amount is greater than zero.
  • Transaction type is 13 and EAP grant amount > zero.

Resolution:

To become authorized, the promoter must meet the requirements of a qualification process and be added to the CESP system. The promoter must then pass industry testing with an overall success rate of 90 per cent or greater before submitting files for processing. If a service provider is sending files on behalf of multiple promoters, each one of those Senders must pass industry testing with their own data.

1012 - Sender is not authorized to submit transactions with CLB content

Error code 1012 is generated because sender must be authorized to submit transactions with CLB content if:

  • Transaction Type is 24.
  • Transaction Type is 19, 21, 22, 23 and CLB amount is greater than zero.
  • Transaction Type is 13 and CLB EAP amount is greater than zero.

Resolution:

To become authorized, the promoter must meet the requirements of a qualification process and be added to the CESP system. The promoter must then pass industry testing with an overall success rate of 90 per cent or greater before submitting files for processing. If a service provider is sending files on behalf of multiple promoters, each one of those Senders must pass industry testing with their own data.

1013 - Sender is not authorized to submit transactions with Alberta Grant content

Error code 1013 is generated because sender must be authorized to submit transactions with Alberta Grant content if:

  • Transaction type is 25.

Resolution:

Alberta Grant requests and Alberta Grant Request reversals are no longer accepted by the CESP system

1014 - Sender is not authorized to submit transactions with Additional CESG content

Error code 1014 is generated because sender must be authorized to submit transactions with Additional CESG content if:

  • Transaction Type is 11 and PCG/Spouse is present.
  • Transaction Type is 11 and PCG/Spouse Given Name is present.
  • Transaction Type is 11 and PCG/Spouse Surname is present.
  • Transaction Type is 11 and PCG/Spouse Type is present.
  • Transaction Type is 12.

Resolution:

To become authorized, the promoter must meet the requirements of a qualification process and be added to the CESP system. The promoter must then pass industry testing with an overall success rate of 90 per cent or greater before submitting files for processing. If a service provider is sending files on behalf of multiple promoters, each one of those Senders must pass industry testing with their own data.

1015 - Sender is not authorized to submit transactions with SAGES content

Error code 1015 is generated because senders must be authorized to submit transactions with SAGES content if:

  • Transaction Type is 30 or 31.
  • Transaction Type is 19, 21, 22, 23 and SAGES amount is greater than zero.
  • Transaction type is 13 and EAP SAGES amount is greater than zero.

Resolution:

Only approved specimen plans are accepted in the CESP database. When a promoter either secures a new specimen plan ID or amends an existing specimen plan with the CRA, the promoter should contact CESP as soon as possible so the CESP database can be updated accordingly prior to any processing of transactions under the new or amended specimen plan ID.

1016 - Specimen plan is not approved for SAGES

Error code 1016 is generated when the specimen plan has not been approved for SAGES. The Specimen Plan must be approved for SAGES if the following transactions are being submitted for processing:

  • Transaction Type 30 or 31.
  • Transaction Type 13 and EAP SAGES amount is greater than zero.
  • Transaction Type 19, 21, 22 or 23 and SAGES amount is greater than zero.

Resolution:

Only approved specimen plans are accepted in the CESP database. When a promoter secures a new specimen plan ID from the CRA, the promoter should contact CESP as soon as possible so the CESP database can be updated accordingly prior to any processing of transactions under the new specimen plan ID.

1017 - Sender is not authorized to submit transactions with BCTESG content

Error code 1017 is generated because senders must be authorized to submit transactions with BCTESG content if:

  • Transaction Type 40 or 41.
  • Transaction Type is 19, 21, 22, 23 and BCTESG amount is greater than zero.
  • Transaction type is 13 and EAP BCTESG amount is greater than zero.

Resolution:

Only approved specimen plans are accepted in the CESP database. When a promoter either secures a new specimen plan ID or amends an existing specimen plan with the CRA, the promoter should contact CESP as soon as possible so the CESP database can be updated accordingly prior to any processing of transactions under the new or amended specimen plan ID.

1018 - Specimen plan is not approved for BCTESG

Error code 1018 is generated when the specimen plan has not been approved for BCTESG. The specimen plan must be approved for BCTESG if the following transactions are being submitted for processing:

  • Transaction Type 40 or 41.
  • Transaction Type 13 and EAP BCTESG amount is greater than zero.
  • Transaction Type 19, 21, 22 or 23 and BCTESG amount is greater than zero.

Resolution:

Only approved specimen plans are accepted in the CESP database. When a promoter secures a new specimen plan ID from the CRA, the promoter should contact CESP as soon as possible so the CESP database can be updated accordingly prior to any processing of transactions under the new specimen plan ID.

2027 - Transaction date precedes beneficiary Birth Date

Error code 2027 is generated on RT 200-03, RT 400 (specifically Transaction Types 11, 13, 14, 24, and 21 if the CLB amount is greater than zero), RT 410, RT 411 and on RT 511. The transaction date represents the date the activity (financial or other) occurred between the promoter and the subscriber of the RESP.

Resolution:

The transaction date must be on or subsequent to the beneficiary's date of birth. The promoter should correct the transaction date and resubmit the transaction.

2033 - Transaction date must be before beneficiary's 21st birthday

Error code 2033 is generated because the transaction date must be before beneficiary's twenty first birthday if Transaction Type is 24.

Resolution:

When transaction type is 24, the transaction date must be before the beneficiary's 21st birthday. The promoter should correct the transaction date and resubmit the transaction.

3006 - Amount must be greater than zero

Error code 3006 is generated on RT 400. In Transaction Types 11-Contribution, 13-EAP and 14-PSE Contribution Withdrawal. The contribution amount, EAP amount, and PSE amount must be a numeric value from 0.01 to 9,999,999.99.

Resolution:

The amount indicated in the contribution, the EAP or the PSE contribution withdrawal fields must be a number between 0.01 and 9,999,999.99. The promoter should correct the amount and resubmit the transaction.

3099 - Amount is out of range

Error code 3099 is generated on RT 400, specifically on the Grant amount, EAP Grant amount, CLB amount, and CLB EAP amount.

CLB amount – if an amount is entered, dollar value must be 0.00 to 20,000 if transaction type = 19, 23 or 22.

CLB amount – if amount is entered, dollar value must be 0.00 to 5,000.00 if transaction type = 21.

CLB EAP amount – if amount entered, dollar value must be 0.00 to 5000.00 if transaction type = 13.

Grant amount, EAP Grant amount, SAGES amount, SAGES EAP amount fields, BCTESG amount and BCTESG EAP amount when mandatory, must be populated with a numerical value from 0.00 to 9,999,999.99.

Resolution:

For transaction types 19, 22 or 23, the CLB amount must be between 0.00 and 20,000. For transaction type 21, the CLB amount must be between 0.00 and 5,000.00. For transaction type 13, the CLB EAP amount must be between 0.00 and 5000.00. Grant amounts, EAP Grant amounts, SAGES amounts, SAGES EAP amounts, BCTESG amounts and BCTESG EAP amounts must be between 0.00 and 9,999,999.99 when mandatory. The promoter should correct the amount in error and resubmit the transaction.

5025 - Contribution transaction has been reversed - invalid status

Error code 5025 is generated on a RT 511. Reversed transactions cannot be amended or updated with the RT 511.

Resolution:

The RT 511 cannot update or amend a reversed transaction.

5026 - Error in contribution transaction, current transaction cannot be processed

Error code 5026 is generated because of an error in the original contribution transaction. Therefore the amendment/update transaction cannot be processed.

Resolution:

The error must be corrected in the original contribution transaction before submitting an updated transaction.

5027 - Unable to locate the contribution transaction

Error code 5027 occurs when RT 511s are being submitted for a non-submitted/existent or reversed RT 400-11 transaction.

Resolution:

If the contribution transaction does not exist in the system, it will be impossible to link the PCG Transaction information to the transaction. The promoter should first correct the contribution transaction, and then resubmit the RT 511.

5028 - Date of contribution transaction must be later than December 31, 2004

Error code 5028 - Date of contribution transaction must be later than December 31, 2004.

Resolution:

The contribution transaction date must be later than December 31, 2004. The promoter must correct the date and resubmit.

5029 - PCG/Spouse information is same as in contribution transaction received in the same period - no processing performed

Error code 5029 - PCG/Spouse Information is same as in contribution transaction received in the same period – no processing performed.

Resolution:

The following fields must be different for the system accepts the transaction:

  • Promoter BN, Specimen Plan ID, Contract ID, PCG/Spouse, PCG/Spouse given name, PCG/Spouse surname, PCG/Spouse type

5030 - Contribution transaction did not request grant

Error code 5030 - In order to request Additional CESG, the original contribution transaction (RT 400-11) must request grant.

Resolution:

The original contribution transaction must request CESG. The promoter must correct and resubmit.

5031 - Contribution transaction date is later than Specimen Plan eligibility end date

Error code 5031 - The contribution transaction date must be earlier than the specimen plan eligibility end date.

Resolution:

The promoter must correct the contribution transaction date and resubmit.

5032 - A more recent PCG/Spouse information transaction is already associated to the contribution

Error code 5032 - A more recent PCG/Spouse information transaction is already associated to the contribution.

Resolution:

If Additional CESG refusal reason is I, L or M, PCG/Spouse information should be updated (through another RT 511) by using a later date than the previously submitted RT 511. If Additional CESG refusal reason is 4, beneficiary information should be corrected at the CRA (refer to the "Beneficiary Matching Report for Refusal Reason 4" for unmatched fields), then RT 511 (with same PCG/Spouse information) should be submitted with a later date than the previously submitted RT 511.

5033 - Late contribution transaction

Error code 5033 - RT 511 is being submitted for a RT 400-11 transaction that is no longer eligible for additional grant due to 3 year rule. (The transaction date of the RT 400-11 and file sent date of the RT 511 exceed 36 months.)

Resolution:

There can be no more than 36 months between the RT 400-11 transaction date and the RT 511 sent date. The promoter must correct and resubmit.

5034 - Date of contribution transaction must be later than December 31, 2012

Error code 5034 - Date of contribution transaction must be later than December 31, 2012 to receive SAGES.

Resolution:

The contribution transaction date must be on or after January 1, 2013.

5035 - No Valid SAGES request received on the contribution

Error code 5035 - A transaction to cancel a SAGES request has been received, however the original SAGES request transaction (RT 410-30) did not request SAGES.

Resolution:

If the intent was to request SAGES, resubmit the contribution with this request.

5036 - Valid cancel request already processed for the contribution

Error code 5036 - A cancel SAGES request transaction (RT 410-31) has been received for a transaction that is already cancelled.

Resolution:

Confirm the status of the original SAGES transaction prior to submitting a RT 410-31.

6000 - Physical file name does not correspond to file name in header record

Error code 6000 is generated when there is a discrepancy between the file name sent by the promoter and the header record within the file. As outlined in the Interface Transaction Standards, the physical naming of a file must follow the proceeding format:

Header To CESP: 001 + Sender BN + Date Sent + Sender file number

For further information on file naming conventions, we recommend that you refer to the Interface Transaction Standards 5.0.

The combination of Sender BN, Date Sent and File Number must match in both the file name and the header record.

Please contact the CESP directly for any systems problems relating to the structure of files and records.

Resolution:

The physical file name and the Header Record (the first record in the file) must be the same excluding the file type in the header record. The promoter must correct and resubmit.

6001 - Incorrect format of physical file name

Error code 6001 is generated when the physical file name does not adhere to the File Naming Standard outlined in the Interface Transaction Standards 4.4. Physical naming of a file must follow the format below:

To CESP: File Type + Sender BN + Date Sent + Sender file number

The File Type is a single uppercase character that indicates the type of file being submitted. P = Production Data file, S = Summary Reporting file, T = Test file, or Z = Test Summary Reporting file.

The promoter BN must be a 15-character alphanumeric field.

The Date Sent format is: YYYYMMDD.

The File Number is a two digit number assigned by the Sender to distinguish between multiple files sent to CESP on the same day. If the Sender sends one file in a day, a file number must still be used. The file number does not need to follow a strict sequence.

Resolution:

The physical file name must adhere to the File Naming Standard. The promoter must rename the file and resubmit.

6002 - Duplicate record with same file name found in database

Error code 6002 - The combination of Sender BN, Date Sent and Sender File number submitted by the Sender must be unique. If the same combination has already been received and processed by the CESP System, the file is rejected. A file number may be repeated by a promoter, providing the Date Sent is different. Additionally, two or more files can be submitted on the same day (with the same Date Sent), providing each file has its own unique file number.

Resolution:

File names must be unique. The promoter must rename the file per the File Naming Standard while making sure that it has its own unique number and resubmit.

6003 - No header record

Error code 6003 is generated when a file is submitted without a RT 001 - Header record. The header record is mandatory to identify the source of a transaction file. Should there be any system related problems in regards to generating a proper header record the Sender/Promoter is to contact CESP immediately.

Resolution:

A header record must be included in the file. The promoter must add a header record and resubmit.

6005 - Too many header records in File

Error code 6005 is generated when more than one RT 001 is submitted in one file. Each file must have one and only one RT 001.

Resolution:

The promoter must eliminate the surplus header record and resubmit the file.

6006 - This BN is not authorized to send files

Error code 6006 is generated when the Sender BN referenced in the record is not recognized by the CESP system as being authorized to send files. The Sender BN is a 15 character alphanumeric identifier unique to each promoter conducting business with CESP.

To become authorized, the promoter must meet the requirements of a qualification process and be added to the CESP system. The promoter must then pass industry testing with an overall success rate of 90 per cent or greater before submitting files for processing. If a service provider is sending files on behalf of multiple promoters, each one of those Senders must pass industry testing with their own data.

Resolution:

Verify that the appropriate BN is being used. If it is indeed a new BN that has not been tested, the promoter must contact the CESP to begin industry testing.

6010 - Record count does not match the number of records in file

Error code 6010 is generated when the number of records in a file does not match the Record Count as submitted in the RT 999-Trailer Record. The Trailer Record, also referred to as the Transaction Control Count, must include in its Record Count the total number of transactions (RT 100, RT 200, RT 400, RT 410, RT 411, etc.), including the header, sub-header and trailer record.

Resolution:

The number of records in the file must be the same as the record count in the trailer record. The promoter must correct and resubmit.

6011 - Too many trailer records in file

Error code 6011 is generated when more than one RT 999 is submitted in a file. Each file must have one, and only one, RT 999.

Resolution:

The promoter must eliminate the surplus trailer record and resubmit the file.

6012 - No trailer records in file

Error code 6012 is generated when a file is submitted without a RT 999. The RT 999-Trailer Record is mandatory in each file submitted by the Sender and is used to provide CESP and the promoter's system with a control count of the number of records in each file.

Resolution:

A trailer record must be included in the file. The promoter must add a trailer record and resubmit.

6014 - The data version in header does not match the current version

Error code 6014 is generated when the data version in the file is not the current version. The Data Version is a mandatory field of the RT 001-Header Record and must be populated with the current version number of the ITS in order to be processed successfully.

Resolution:

The data version indicated in the file must be the most current version of the ITS. The promoter must correct and resubmit.

6015 - Trailer record not last in file

Error code 6015 is generated when there is another character or transaction found after the RT 999-Trailer Record. The RT 999 must be the last record in each file and contain an accurate control count or the file is rejected. For further validation rules on the RT 999, please refer to the ITS.

Resolution:

The trailer record must be the last record in the file. The promoter must delete all additional spaces or characters that may be after the trailer record and resubmit.

6016 - Header record not the first record in the file

Error code 6016 is generated when there is another character or transaction found before the RT 001-Header Record. The RT 001 must be the first record in each file or the file is rejected. For further validation rules on the RT 001, please refer to the ITS.

Resolution:

The header record must be the first record in the file. The promoter must delete all additional spaces or characters that may be before the header record and resubmit.

7000 - Invalid date

Error code 7000 - is most commonly generated for one of the following reasons:

  1. The date field in error which was submitted on a RT 100, RT 200, RT 400, RT 410, RT 411 or RT 511 is not submitted in a valid date format, or
  2. The year of birth submitted does not match the year of birth already established for the beneficiary in the CESP system for the beneficiary.

If this error is generated, the beneficiary information is not sent to the Social Insurance Registry (SIR) for validation.

Please note that for an error code 7000, the five SIR fields are not populated in the Record Type 900-Transaction Error Report because the transaction is rejected before being sent to SIR for validation.

Resolution:

  1. The CESP system requires that all dates be formatted YYYYMMDD, numerals only without delimiters such as spaces or punctuations. To correct this error, the promoter will ensure the date being submitted is formatted as outlined in the Interface Transaction Standards 4.4 in section 2.8.
  2. If the birth date format is correct, the promoter should verify the birth date on their records with the custodial parent and/or subscriber of the RESP. Should the custodial parent and/or subscriber confirm the date of birth already being submitted, the promoter should direct him/her to contact the SIR.

An error code 7000 received on an RT 200-03 beneficiary information transaction should be perceived by the promoter as similar to an error code 7006-Invalid SIN. The year of birth being submitted does not correspond with the year of birth already validated by SIR. However, since the remaining four fields (Given Name, Surname, Sex, and SIN) are not sent to SIR for validation, the CESP advises that all five fields be verified with the subscriber/custodial parent.

The CESP has noted that a very small number of 7000 errors received on the RT 200-03 require manual intervention on the part of the program. Your promoter support officer is responsible to review monthly any 'potential' manual fixes for your company. However, should you have concern that a 7000 error received requires manual intervention, please contact your promoter support officer.

7001 - Invalid value

Error code 7001 - informs promoters that a transaction used an invalid value. This is a common error when promoters submit a financial transaction (RT 400) using a beneficiary SIN that is not currently established in the CESP system. A beneficiary SIN would not be established in the CESP system for the following reasons:

  1. The RT 200-03 Beneficiary Information transaction was never submitted;
  2. The RT 200-03 Beneficiary Information transaction was submitted but was rejected with an error code;
  3. The beneficiary SIN is no longer valid in the CESP system.
  1. Error code 7001 could also be sent when a new SAGES request is received during the SAGES suspension period for a contribution that previously had a successfully processed SAGES request;

Resolution:

  1. If you have not submitted a RT 200-03 Beneficiary Information transaction:

    Please submit a RT 200-03 in the following production run. The financials can be submitted in the same month for processing.

  2. If you have submitted a RT 200-03 Beneficiary Information transaction and received an error code:

    Check the error reports returned by the CESP to verify why the RT 200-03 did not process successfully. The error report will provide the error that was generated on the RT 200-03, as well as the field that was in error. This error should be corrected and the RT 200-03 resubmitted. The financial transactions (RT 400) can then be submitted for processing in the same file as the correct RT 200-03.

  3. If you have already successfully submitted a RT 200-03 Beneficiary Information transaction:

    The CESP validates, on a monthly basis, the usability of the SIN for all beneficiaries already established in the system. The SIN Validation Report (RT 920) notifies promoters when beneficiaries have SIN issues. If beneficiary SIN information changes (e.g. permanent SIN replaces an expired 900 series SIN), the beneficiary SIN in the CESP system becomes a linked SIN (SIN Issue 3 in RT 920) and the CESP rejects financial transactions (RT 400), submitted using the original SIN, with an error code 7001. The promoter must submit a new RT 200-03 Beneficiary Information transaction to the CESP with the updated beneficiary SIN and resubmit all financial transactions (RT 400) rejected with an error code 7001.

  1. Effective as of the February 2018 processing period, all SAGES requests submitted during the SAGES suspension period will be rejected for contributions that previously had a successfully processed SAGES request. This will prevent eligible SAGES amounts already received in an RESP from being reclaimed by ESDC.

7002 - Invalid transaction type

Error code 7002 is generated on RT 100, RT 200, RT 400, RT 410, RT 411 or RT 511 when the Transaction Type referenced in the record is not supported by the CESP system or is not valid for the given record type. For a complete list of record types and their corresponding transactions types, please refer to pages 38, 41 and 46 of the ITS.

Resolution:

Only use valid transaction types as per ITS. The promoter must correct and resubmit.

7005 - Data is missing from field

Error code 7005 is generated when data is missing from a mandatory field. When submitting a RT 001, RT 100, RT 200, RT 400, RT 410, RT 411, RT 511 or RT 999 to CESP, all mandatory fields, as per the ITS, must be filled. (Please refer to the Interface Transaction Standards document to identify mandatory fields for each RT.) Should any mandatory fields be left empty, the transaction will reject.

Resolution:

Ensure all mandatory fields are populated before submitting transactions to the CESP system.

7006 - Invalid SIN

1. Error code 7006 is commonly generated by the CESP on RT 200-03 'Beneficiary Information' when the information in one or more of the five fields submitted by the promoter does not match what is held at SIR. The five fields verified with SIR are: SIN, Given Name, Surname, Sex, and Date of Birth. Any and all fields that are rejected by SIR are noted in the error report returned to the promoter by the CESP.

2. An Invalid SIN error will also be returned if the beneficiary's SIN is not numerically valid. A mathematical formula is used by ESDC to determine the validity of the composition of a SIN before the beneficiary's information is sent to SIR. Therefore, if the Invalid SIN error is due to the SIN not being numerically valid, no information will appear in the five fields returned in the error report.

3. In some instances, a promoter may receive an error code 7006 – Invalid SIN even though all five fields are designated with a '1'- Passed SIR Validation. This situation may occur where a SIN has been changed or linked to another SIN at SIR.

Resolution:

1 & 2. Determine which field is in error (as reported back to the promoter in the error report) and verify the information with the subscriber of the RESP. Should the subscriber confirm that the information is correct; the promoter should refer the subscriber to SIR. Please note that the SIR will only discuss information held in their database with the beneficiary's custodial parent. Once the information is corrected, the transaction should be resubmitted by the promoter.

3. Where the promoter receives an error code 7006 - Invalid SIN, but all five fields are designated with a '1'- Passed SIR Validation, the promoter should contact the subscriber and/or custodial parent to verify if the beneficiary's SIN has been changed for any reason since initially provided. Should the subscriber/custodial parent confirm that the beneficiary's SIN has been changed, the promoter must submit a new RT 200-03 - Beneficiary Information – with the new SIN for each contract and specimen plan held for that beneficiary.

The promoter should also contact the CESP to advise that a new SIN is being submitted for the beneficiary and to discuss any further transactions that may need to be submitted to update the beneficiary's accounts.

7008 - Promoter is not associated with the specimen plan

Error code 7008 is generated on RT 100, RT 200, RT 400, RT 410, RT 411 or RT 511 where the Specimen Plan ID referenced is not recognized by the CESP system as belonging to the promoter.

The Specimen Plan ID is a numeric identifier assigned to the promoter by the CRA.

To become authorized, the promoter must meet the requirements of a qualification process and be added to the CESP system. The promoter must then pass industry testing with an overall success rate of 90 per cent or greater before submitting files for processing. If a service provider is sending files on behalf of multiple promoters, each one of those promoters must pass industry testing with their own data.

Resolution:

If the specimen plan was erroneously indicated, the promoter must correct and resubmit. If the specimen plan is new to the promoter, the promoter must contact CESP to initiate Industry Testing.

7017 - Date of financial transaction must be later than December 31, 1997

Error code 7017 is generated on RT 400 with a transaction date that is prior to 1998. The CESP was announced in the February 1998 Budget and only maintains records of RESP activity that occurred on or after January 1, 1998.

Resolution:

The transaction date must be after December 31, 1997. The promoter must correct and resubmit.

7018 - Date is earlier than original transaction date

Error code 7018 is generated when the transaction date of an RT 400 reversal is prior to the date of the original transaction. The transaction date must be on or after the original transaction date if the reversal flag = 2.

Resolution:

The promoter will ensure that the date of the transaction they intend to reverse is on or after the transaction date of the original transaction.

7020 - Error in original transaction, current transaction cannot be processed

Error code 7020 is generated when the promoter attempts to submit reversals for financial transactions that were not processed successfully by the CESP system. The RT 400 'Original Promoter Trans. ID' field being referenced in the RT 400 reversal was not processed successfully.

Resolution:

The promoter will verify that the original promoter transaction ID has been processed by the CESP System prior to submitting a reversal for that transaction.

7021 - Original transaction and its reversal were found in the same processing period – no processing performed

Error code 7021 is generated when a reversal and its' original transaction are submitted in the same processing period. CESP supports corrections to financial transactions (RT 400) by submitting a transaction to reverse the original transaction and resubmitting another transaction with the corrected information. The reversal transaction indicates that the transaction and amounts reported did not actually occur as reported. A reversal transaction must always include the promoter BN and transaction ID from the original RT 400 transaction that is to be reversed. If the original transaction and the reversal are submitted in the same processing period, both will be rejected and no processing will occur.

Resolution:

Since no processing occurs when this error is generated, promoters need only to submit a transaction with the correct information in the following production run.

7022 - Unable to locate the original transaction

Error code 7022 is generated when the original transaction ID being referenced in a reversal cannot be matched or found in the CESP System. This occurrence is commonly due to an original transaction never having been submitted or having been rejected.

The CESP system supports corrections to RT 400-Financial Transactions by submitting a transaction to reverse the original transaction and then resubmitting another transaction with the corrected information. A reversal indicates that the transaction and amounts reported did not actually occur as reported. A reversal transaction must always include the promoter BN and transaction ID from the original RT 400 transaction that is to be reversed.

Resolution:

The promoter will verify the Original Transaction ID and Original Promoter BN being referenced in the reversal to ensure the original transaction was submitted and processed successfully.

7023 - The status of the original transaction is invalid

Error code 7023 is generated when the original transaction ID being referenced is not in "Processed" status. For a reversal to be processed, the original transaction must have a 'Processed' status in the CESP system. If the original transaction has already been reversed, the subsequent reversal will raise error code 7023. The CESP supports corrections to RT 400-Financial Transactions by submitting a transaction to reverse the original transaction and then resubmitting the corrected information. A reversal indicates that the transaction and amounts reported did not actually occur as reported. A reversal transaction must always reference the original RT 400 transaction being reversed by referencing the promoter BN and transaction ID that appears on the original transaction.

Resolution:

The promoter will confirm the status of the original transaction that they intend to reverse before submitting a transaction reversal.

7030 - Sender not authorized to send data for the specimen plan

Error code 7030 is generated when a Sender BN specified in the header record is not authorized to send data pertaining to that specimen plan ID. The specimen plan ID is a numeric identifier assigned to the promoter by theCRA.

Resolution:

To become authorized, the sender/promoter must meet the requirements of a qualification process and be added to the CESP system. The Sender must then pass industry testing with an overall success rate of 90 per cent or greater before submitting files for processing. If a service provider is sending files on behalf of multiple promoters, each one of those promoters must pass industry testing with their own data.

7031 - Beneficiary is not associated with the specimen plan

Error code 7031 is generated when the CESP system is unable to process a RT 400, RT 410, RT 411 or RT 511 because the beneficiary has not been associated with the specimen plan identified in the Specimen Plan ID field of the transaction. The beneficiary would not be associated with the specimen for any of the following reasons:

  1. The RT 200-03 Beneficiary Information transaction was never submitted
  2. The RT 200-03 Beneficiary Information transaction was submitted but was rejected for an error
  3. The RT 200-03 Beneficiary Information was submitted and processed, but the Specimen Plan ID given in the RT 400 does not correspond with the Specimen Plan ID in the RT 200-03

Resolution: If you have not submitted an RT 200-Beneficiary Information

  1. Please submit an RT 200-03 in the following production run. The financials can be submitted in the same month for processing

    If you have submitted an RT 200-03 Beneficiary Information transaction

  2. Check the error reports returned by the CESP system to verify why the RT 200-03 did not process successfully. The error report will provide the error that was generated on the RT 200-03, as well as the field that was in error. This error should be corrected and the RT 200-03 resubmitted. The financials can then be submitted for processing
  3. Check the processing reports returned by the CESP system to verify the Specimen Plan ID given in the RT 200-03 Beneficiary Information transaction. Ensure that this Specimen Plan ID corresponds with the Specimen Plan ID submitted in the RT 400

7032 - Beneficiary is not associated to a CLB account

Error code 7032 is generated on RT 400 in relation to Transaction Type 13, 19, 21, 22, and 23. A request for CLB amount or CLB EAP amount is made and the beneficiary does not have a CLB account.

Resolution:

The beneficiary must have a CLB account. The promoter must correct and resubmit.

7033 - The SIN or BN is not numerically valid

Error code 7033 - occurs when the SIN or BN is not numerically valid. A mathematical formula is used by ESDC to determine the validity of the composition of a SIN before the beneficiary's information is sent to SIR.

Resolution:

Resubmit transaction with an accurate SIN or BN.

7034 - Transaction date must be on or after January 1, 2004

Error code 7034 is generated when the Transaction Date is before January 1, 2004 and the Transaction Type is 24 or;

  • The Transaction Date is before January 1, 2004 if Transaction Type is 19, 21, 22 or 23 and CLB amount is greater than zero.
  • The Transaction Date is before January 1, 2004 if Transaction Type is 13 and CLB EAP amount is greater than zero.

Resolution:

The transaction date must be on or after January 1, 2004. The promoter must correct and resubmit.

7035 - Transaction date must be on or after January 1, 2005

Error code 7035 is generated when the Transaction Date is before January 1, 2005 and the Record Type and Transaction Type is 511-12.

Resolution:

The transaction date must be on or after January 1, 2005. The promoter must correct and resubmit.

7036 - Must be zero or blank if transaction Type 21 and repayment reason is 1

Error code 7036 is generated when the Transaction Type is 21, the repayment reason = 1 and a non-zero amount is provided for any of the following fields:

  • CLB amount
  • BCTESG amount

Resolution:

The CLB amount and BCTESG amount must be zero or blank when transaction type is 21 and repayment reason is 1. The promoter must correct and resubmit.

7037 - Date of birth is prior to January 1, 2004

Error code 7037 - CLB incentives only began being offered in January 2004. Beneficiary date of birth must be on or after January 1, 2004 in order to be eligible for CLB.

Resolution:

The transaction date must be on or after January 1, 2004. The promoter must correct and resubmit.

7039 - Transaction date is earlier than contribution transaction date

Error code 7039 is generated when the transaction date used in the RT 511-12 must be equal to or greater than the transaction date used in the original RT 400-11 transaction.

Note: If the RT 511-12 is an update, the transaction date should be later than the transaction date used in the previously submitted 511-12.

Resolution:

The RT 511-12 transaction date must be equal or later than the original RT 400-11 transaction date. The promoter must correct and resubmit.

7040 - Transaction date must be on or after January 1, 2013

Error code 7040 - Is generated when the date of the SAGES request transaction is before January 1, 2013.

Resolution:

The transaction date must be on or after January 1, 2013. Correct and resubmit the transaction if required.

7041 - Transaction date must be on or after August 15, 2015

Error code 7041 - is generated when the date of the BCTESG request transaction is before August 15, 2015.

Resolution:

The transaction date must be on or after August 15, 2015. Correct and resubmit the transaction if required.

7042 - Beneficiary date of birth must be on or after January 1, 2006.

Error code 7042 - is generated if the beneficiary date of birth is before January 1, 2006.

Resolution:

The promoter must confirm the date of birth of the beneficiary requesting BCTESG.

Appendix F: Understanding refusal reasons

The Canada Education Savings Program (CESP) within Employment and Social Development Canada (ESDC), is responsible for administering the following education savings incentives available to eligible beneficiaries of Registered Education Savings Plans (RESPs):

  • Amount of Canada Education Savings Grant (Basic CESG)
  • Additional amount of Canada Education Savings Grant (Additional CESG)
  • Canada Learning Bond (CLB)
  • Saskatchewan Advantage Grant for Education Savings (SAGES)
  • British Columbia Training and Education Savings Grant (BCTESG)

This appendix explains the refusal reasons (RR) received in response to financial requests for these education savings incentives. See Appendix C for a list of acronyms and terms used in this guide.

1. Background information

This appendix provides information to assist RESP providers understand refusal reasons. For Additional technical information, consult the Interface Transaction Standards (ITS) on the Resources for RESP promoters page under the Systems Documentation tab.

1.1 What is a refusal reason?

Refusal reasons indicate 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.

1.2 How are refusal reasons reported to promoters?

The CESP system reports refusal reasons in the following three locations of the record types RT 900, 910 and 911:

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

1.3 How does a refusal reason differ from an error code?

If the CESP system cannot process an RESP transaction sent by a promoter, due to an error in the transaction information, the CESP system will reject the transaction. In these cases, the promoter will receive a corresponding RT 800 transaction with an error code indicating 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 will receive a refusal reason in the RT 900, RT 910 or RT 911 transactions transaction if the CESP does not pay the full amount of grant or bond for a transaction.

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.

1.5 Transaction records

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

  • Refusal reasons: Recorded in the RT 900, RT 910 and RT 911 found in the Transaction Processing Report (.PRO) returned to the promoter at the end of each reporting period.
  • Basic CESG: CESG request submitted by promoter through an RT 400-11 transaction record. Refusal reasons will be recorded in 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 an RT 400-11 transaction. In addition, PCG/Spouse SIN, Surname, Given Name, and Type information are required to request the Additional CESG. Refusal reasons are recorded in position 174 of the RT 900 in the .PRO file.
  • CLB: Canada Learning Bond request submitted by promoter through a RT 400-24 transaction record. Refusal reasons are recorded in position 67 of the RT 900 in the .PRO file.
  • SAGES: Saskatchewan Advantage Grant for Education Savings request submitted by promoter through an RT 410-30 transaction record. Refusal reasons are recorded in position 45 of the RT 910 in the .PRO file.
  • BCTESG: British Columbia Training and Education Savings Grant request submitted by promoter through an RT 411-40 transaction record. Refusal reasons are recorded in position 45 of the RT 911 in the .PRO file.

Refusal reason 1 - Annual limit exceeded

Basic CESG

Refusal Reason 1 - The Basic CESG room available to the beneficiary has been paid out for the calendar year that the contribution falls into.

Resolution: None required as each beneficiary is entitled to $500 of Basic CESG annually ($1,000 if there was carry forward) and they have received the maximum amount of Basic CESG for the year.

Additional CESG

Refusal Reason 1 - A contribution requesting Additional CESG is refused for one of the following reasons:

  • The individual PCG reported on the contribution has a high income level as per the Canada Revenue Agency (CRA) therefore no Additional CESG can be paid to the beneficiary.
  • The individual PCG reported on the contribution has either a mid (10%) or low range (20%) income level and the beneficiary has received all the Additional CESG for that year based on the income level.

Resolution: None required as the beneficiary has received all the Additional CESG to which they are entitled for the year.

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.

SAGES

Refusal Reason 1 - The maximum SAGES amount, including any carry forward room, has been paid to the beneficiary for the calendar year that the contribution falls into.

Resolution: Each beneficiary is entitled to $250 of SAGES annually ($500 if there was carry forward). Should you feel the beneficiary has not received the maximum amount of SAGES for the year, contact CESP.

Refusal reason 2 - Lifetime contribution limit exceeded

Basic CESG

Refusal Reason 2 - The total amount of contributions for a beneficiary has reached or exceeded the $50,000 contribution limit. Any subsequent contributions made after this limit is reached will be refused grant.

Resolution: The promoter should verify that the total contribution amounts submitted for the beneficiary does not exceed $50,000 and that no contribution amounts were reported incorrectly. 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.

Additional CESG

Refusal Reason 2 - The total amount of contributions for a beneficiary has reached or exceeded the $50,000 contribution limit or greater. Any subsequent contributions made after this limit is reached will be refused Additional CESG.

Resolution: The promoter should verify that the total contribution amounts submitted for the beneficiary does not exceed $50,000 and that no contribution amounts were reported incorrectly. 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.

SAGES

Refusal Reason 2 - The total amount of contributions for a beneficiary has reached or exceeded the $50,000 contribution limit. Any subsequent contributions made after this limit is reached will be refused SAGES.

Resolution: The promoter should verify that the total contribution amounts submitted for the beneficiary, does not exceed $50,000 and that no contribution amounts were reported incorrectly. If there is a discrepancy in the contribution amounts, reverse the incorrect contribution (RT 400-11) and resubmit the correct contribution (RT 400-11). If all contribution amounts are correct then contact CESP for more information.

Refusal reason 3 - Age of beneficiary

If there is a discrepancy in the age/birth date of the beneficiary generating this Refusal Reason, contact CESP .

Basic CESG

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

Resolution: None required as the beneficiary is only entitled to receive grant up until the end of the year in which they turn 17.

Additional CESG

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

Resolution: None required as the beneficiary is only entitled to receive grant up until the end of the year in which they turn 17.

CLB

Refusal Reason 3 - An active CLB request is being assessed for a payment for a new benefit year and the beneficiary's birth date has been updated to a date before January 1, 2004.

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

SAGES

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

Resolution: Verify the age of the beneficiary otherwise no action is required if the contribution is after the end of the year in which they turned 17.

BCTESG

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

  • If the child was born in 2006, the transaction date of the BCTESG request must be between August 15, 2016 and August 14, 2019.
  • If the child was born in 2007 or 2008, the transaction date of the BCTESG request must be between August 15, 2015 and August 14, 2018.
  • If the child was born in 2009, the transaction date of the BCTESG request must be between August 15, 2015 or the day the beneficiary turns 6 (whichever is later) to August 14, 2018 or the day before the beneficiary turns 9 in 2018 (whichever is later).
  • If the child was 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.

Refusal reason 4 - PCG, spouse or beneficiary information not matched with CRA information

Additional CESG

Refusal Reason 4 - The PCG, spouse and/or beneficiary information submitted is not matched with the corresponding information at the CRA on the contribution requesting Additional CESG.

Note: The following fields are sent to the CRA for matching: SIN, given name, surname of the individual PCG/Spouse, beneficiary given name, surname and date of birth.

Resolution: Contact the subscriber to request that the PCG call the CRA to 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 PCG/Spouse information transaction for the financial transaction which was refused using the correct PCG/Spouse or reverse and resubmit the original transaction if the PCG/Spouse information transaction has not been implemented by the promoter.

Note: At the end of each month, an excel report showing the fields that did not match with the CRA and resulted in this refusal reason is sent to each promoter.

CLB

Refusal Reason 4 - The PCG, spouse and/or beneficiary information submitted is not matched with the corresponding information at the CRA on the CLB request.

Note: The following fields are sent to the CRA for matching: SIN, given name, surname of the individual PCG/Spouse, beneficiary given name, surname and date of birth.

Resolution: Contact the subscriber to request that the PCG call the CRA to 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 accurate, resubmit the CLB request with the correct PCG/Spouse information.

Refusal reason 5 - Specimen plan not eligible

Contact the CRA to determine the status of your specimen plan or if there are other concerns or discrepancies in the specimen plan eligibility information, contact CESP .

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.

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.

CLB

Refusal Reason 5 - An active CLB request is being assessed for a payment and 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.

SAGES

Refusal Reason 5 - The specimen plan named on the request is not eligible to receive SAGES.

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

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 specimen plan and resubmit the request if required.

Refusal reason 6 - Transaction requested no grant

If there are any concerns or discrepancies in the information submitted, contact CESP .

Basic CESG

Refusal Reason 6 - The grant requested flag is set to "No" for a contribution.

Resolution: Verify if grant was supposed to be requested. If yes, reverse the contribution and resubmit the contribution with the grant requested flag set to "Yes".

Additional CESG

Refusal Reason 6 - The four PCG/Spouse information fields are not provided for a contribution requesting Additional CESG.

Resolution: Verify if Additional CESG was supposed to be requested on the contribution. If yes, either add the missing PCG/Spouse information on a PCG/Spouse information transaction or reverse and resubmit the contribution transaction with the missing PCG/Spouse information.

CLB

Refusal Reason 6 - The grant requested flag is set to "No" which is considered a stop CLB request.

Resolution: Confirm that this request was supposed to stop CLB. If not, re-submit the CLB request with the grant requested flag set to "Yes".

Refusal reason 7 - Failed 16/17 year rule

If there is any discrepancy in the contributions by the client, contact CESP .

Basic 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 totaling $100 in four different years; or
  • a total of $2,000 in lifetime contributions up to and including the beneficiary's 15th year.

Resolution: Contact the subscriber to determine if the beneficiary does in fact meet the 16/17 rule based on contributions made into the RESP prior to 1998. If the subscriber attests to these pre 1998 contributions then submit a proof of eligibility report to the CESP in order to have the 16/17 rule waived.

Instructions for the proof of eligibility report can be found in the following bulletin:

CESP Information Bulletin CESP-2006-010 sent on June 20, 2006

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 totaling $100 in four different years; or
  • a total of $2,000 in lifetime contributions made up to and including the beneficiary's 15th year.

Resolution: Contact the subscriber to determine if the beneficiary does in fact meet the 16/17 rule based on contributions made into the RESP prior to 1998. If the subscriber attests to these pre 1998 contributions, submit a proof of eligibility report to the CESP in order to have the 16/17 rule waived.

Instructions for the proof of eligibility report can be found in the following bulletin:

CESP Information Bulletin CESP-2006-010 sent on June 20, 2006

SAGES

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 totaling $100 in four different years; or
  • a total of $2,000 in lifetime contributions up to and including the beneficiary's 15th year.

Resolution: Contact the subscriber to determine if the beneficiary does in fact meet the 16/17 rule based on contributions made into the RESP prior to 1998. If the subscriber attests to these pre 1998 contributions then submit a proof of eligibility report to the CESP in order to have the 16/17 rule waived.

Instructions for the proof of eligibility report can be found in the following bulletin:

CESP Information Bulletin CESP-2006-010 sent on June 20, 2006

Refusal reason 8 - CLB will not be paid for this benefit year

If there are any discrepancies in the income levels reported for the year, resulting in this Refusal Reason, contact CESP .

CLB

Refusal Reason 8 - The beneficiary is not eligible for a CLB payment for the benefit year for which the request was made.

Resolution: Contact the subscriber to advise that CLB will not be paid for that benefit year because the beneficiary is not in care of an individual PCG eligible to receive the Canada child benefit (CCB). The PCG should contact the CRA at 1-800-387-1193 for further information if required. If updated CCB information is received from the CRA for that benefit year, then the CLB will automatically be paid.

Refusal reason 9 - Other

Basic CESG

Refusal Reason 9 - The contribution amount is below the minimum amount of $0.03, which is required to attract grant.

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

Additional CESG

Refusal Reason 9 - The contribution amount is below the minimum amount of $0.03, which is required to attract grant.

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

SAGES

Refusal Reason 9 - (1) The contribution amount is below the minimum amount of $0.05, which is required to attract grant.

(2) A SAGES request is submitted to the CESP system for processing in February 2018 or later.

Resolution: (1) None required as contributions must be greater than $0.04 in order to attract grant.

(2) None required. For the duration of the SAGES suspension period, all SAGES requests processing in February 2018 and onwards will be refused. The CESP system will continue to process the requests, but SAGES will not be paid.

Refusal reason A - Specimen Plan not approved for CLB

CLB

Refusal Reason A - An active CLB request is being assessed for a new benefit year and the specimen plan submitted on the CLB request is no longer approved for CLB in the CESP system.

Resolution: This refusal reason is assigned when a CLB installment for a new benefit year is being assessed. The specimen plan reported on the CLB request is no longer approved for CLB and the promoter should contact the CESP to confirm.

Refusal reason B - Invalid beneficiary

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 has been issued a new SIN. If a new SIN has been issued, submit a beneficiary information transaction record to ensure the beneficiary's new SIN has been associated to the specimen plan. The contribution must then be reversed and re-submitted using the new valid SIN.

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 has been issued a new SIN. If a new SIN has been issued, submit a beneficiary information transaction record to ensure the beneficiary's new SIN has been associated to the specimen plan. The contribution must then be reversed and re-submitted using the new valid SIN.

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 has been issued a new SIN. If a new SIN has been issued, submit a beneficiary information transaction record to ensure the beneficiary's new SIN has been associated to the specimen plan. A new CLB request with the new SIN must also be submitted in order to continue receiving the CLB.

Refusal reason C - Request not designated to attract CLB for the beneficiary

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 beneficiary etc.

Refusal reason D - Late transaction

If unable to submit within this deadline due to exceptional circumstances, contact CESP .

Basic CESG

Refusal Reason D - The transaction date of the contribution transaction requesting Basic CESG 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. Transactions that are submitted after 3 years will be processed but grant requests will be refused.

Additional CESG

Refusal Reason D - The transaction date of the contribution transaction requesting Additional CESG 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. Transactions that are submitted after 3 years will be processed but grant requests will be refused.

SAGES

Refusal Reason D - The transaction date of the SAGES request 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 SAGES requests with the CESP system within 3 years. Transactions that are submitted after 3 years will be processed but grant requests will be refused.

CLB

Refusal Reason D - The transaction date of the CLB request transaction 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 using 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. Transaction requests submitted after 3 years will be processed but requests for bond will be refused.

BCTESG

Refusal Reason D - The transaction date of the BCTESG request 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. Transactions that are submitted after 3 years will be processed but the requests will be refused.

Refusal reason E - Lifetime limit exceeded

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 all grant they are entitled to receive.

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 all grant they are entitled to receive.

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 are entitled to receive.

SAGES

Refusal Reason E - The beneficiary has received the maximum lifetime allowable amount of $4,500.

Resolution: None required as the beneficiary has received all grant they are entitled to receive.

BCTESG

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

Resolution: None required as the beneficiary has received all grant they are entitled to receive.

Refusal reason F - Anti-churning rule violation

Additional CESG

Refusal Reason F - The beneficiary named on the contribution requesting Additional CESG has been 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, with a repayment reason of contribution withdrawal and a grant amount is greater than zero.

Resolution: Contact the subscriber to determine if they have previously withdrawn contributions from an RESP which may have caused the beneficiary to become tainted.

Refusal reason G - Contribution transaction date earlier than January 1, 2005

Additional CESG

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

Resolution: Additional CESG is only paid on contribution transactions dated on or after January 1, 2005. If a mistake was made regarding the transaction date of the contribution, reverse the previous contribution and resubmit the new contribution with the correct transaction date.

Refusal reason H - PCG/Spouse information is missing

Additional CESG

Refusal Reason H - One or more of the following fields do not contain information: SIN, surname, given name and type of PCG/Spouse.

Resolution: The PCG/Spouse SIN, given name, surname, and type are required to receive the Additional CESG. If any of this information was not provided, use an update PCG/Spouse information transaction to add the missing information or reverse the contribution and re-submit with the missing information.

Refusal reason I - The PCG/Spouse SIN is not numerically valid

Additional CESG

Refusal Reason I - The individual PCG/Spouse SIN is not numerically valid. A mathematical formula is used by ESDC to determine the validity of the composition of a SIN.

Resolution: Verify that the individual PCG/Spouse SIN is 9 digits in length and if required, contact the subscriber to advise that the individual PCG/Spouse SIN provided is not correct. If a new individual PCG/Spouse SIN is provided then use either an update PCG/spouse information transaction to change the information or reverse the contribution and re-submit with the new information.

Refusal reason J - Contract is not an individual/sibling only contract

If there are any errors in the designation of the contract, contact CESP .

Note: Requests for CLB (RT 400-24), SAGES (RT 410-30) will be rejected with an Error Code 1010, if the contract reported on these transactions does not have the individual/sibling only flag set to “Yes”.

Additional CESG

Refusal Reason J - The contract is not designated as an individual/sibling only contract.

Resolution: To receive Additional CESG, 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". Then reverse and resubmit the previously refused contribution transaction to receive the Additional CESG.

CLB

Refusal Reason J - The contract is not designated 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 CLB request was initially processed. The promoter should verify that the contract is not an individual/sibling only contract.

Refusal reason L - PCG/Spouse SIN or Agency BN not matched by the CRA

If there are any concerns or discrepancies in the information, contact CESP .

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 to 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 and use either an update PCG/Spouse information transaction to change the PCG/Spouse information or reverse the contribution transaction and then re-submit with new PCG/Spouse information.

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 to 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 a correct PCG/Spouse is obtained, submit a new CLB request.

Refusal reason M - PCG custody not confirmed by the CRA

If there are any other concerns or discrepancies in the information, contact CESP .

Additional CESG

Refusal Reason M - The PCG reported on the contribution or the PCG associated to the spouse reported on the contribution requesting Additional CESG is not the designated PCG for the beneficiary during the month and year of the transaction date, according to the CRA.

Resolution: Contact the subscriber to 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 new PCG/Spouse information is provided, use either an update PCG/Spouse information (511-12) transaction to change the PCG/Spouse information or reverse the contribution transaction and re-submit with new PCG/Spouse information.

CLB

Refusal Reason M - The PCG reported on the CLB request 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 to notify 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 or if new PCG/Spouse information is provided, then submit a new CLB request.

Refusal reason N - SIN has been flagged by SIR

If there are any other concerns or discrepancies in the information, contact CESP .

Basic CESG

Refusal Reason N - The SIN reported on the contribution requesting CESG has been flagged as "not useable" by the Social Insurance Registry (SIR).

Resolution: Contact the subscriber and verify the status of the beneficiary's SIN. If the SIN has been cancelled and a new SIN has been issued, submit a beneficiary information transaction record to ensure the beneficiary's new SIN has been associated to the specimen plan. Once this has been completed, reverse the previous contribution transaction and re-submit the contribution using the new SIN.

Additional CESG

Refusal Reason N - The SIN reported on the contribution requesting Additional CESG has been flagged as "not useable" by the Social Insurance Registry (SIR).

Resolution: Contact the subscriber and verify the status of the beneficiary's SIN. If the SIN has been cancelled and a new SIN has been issued, submit a beneficiary information transaction record to ensure the beneficiary's new SIN has been associated to the specimen plan. Once this has been completed, reverse the previous contribution transaction and re-submit the contribution using the new SIN.

CLB

Refusal Reason N - The SIN reported on the CLB request has been flagged as "not useable" by the Social Insurance Registry (SIR).

Resolution: Contact the subscriber and verify the status of the beneficiary's SIN. If the SIN has been cancelled and a new SIN has been issued, submit a beneficiary information transaction record to ensure the beneficiary's new SIN has been associated to the specimen plan. Once this has been completed, submit a new CLB request.

SAGES

Refusal Reason N - The SIN reported on the contribution requesting SAGES has been flagged as “not useable” by the Social Insurance Registry (SIR).

Resolution: Contact the subscriber and verify the status of the beneficiary’s SIN. If the SIN has been cancelled and a new SIN has been issued, submit a beneficiary information transaction record to ensure the beneficiary’s new SIN has been associated to the specimen plan. Once this has been completed, reverse the previous contribution transaction and re-submit the contribution using the new SIN and resubmit a new SAGES request transaction for this contribution.

BCTESG

Refusal Reason N - The SIN reported on the BCTESG request has been flagged as “not useable” by the Social Insurance Registry (SIR).

Resolution: Contact the subscriber and verify the status of the beneficiary’s SIN. If the SIN has been cancelled and a new SIN has been issued, submit a beneficiary information transaction record to ensure the beneficiary’s new SIN has been associated to the specimen plan. Once this has been completed, submit a new BCTESG request

Refusal reason O - Late SAGES request

SAGES

Refusal Reason O - The transaction date of the SAGES request compared to the contribution transaction date is greater than 3 years.

Explanation: The subscriber must request SAGES within 3 years after making a contribution. The transaction date of a SAGES request is the most recent of the SAGES application form date or the contribution transaction date for which SAGES is being requested. A SAGES request with a transaction date that is more than 3 years after the corresponding contribution date will be processed but will be refused.

Resolution: Contact CESP if you are unable to comply with this rule due to exceptional circumstances.

Refusal reason P - Spouse not in an active relationship

Additional CESG

Refusal Reason P -The spouse reported on the contribution is not in an active relationship with the PCG at the time of the contribution based on the transaction date of the contribution.

Resolution: Contact the subscriber to notify 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 new PCG/Spouse information is provided, use either an update PCG/Spouse information (511-12) transaction to change the PCG/Spouse information or reverse the contribution transaction and re-submit with new PCG/Spouse information.

CLB

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

Resolution: Contact the subscriber to notify 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 or if new PCG/Spouse information is provided, then submit a new CLB request.

Appendix G: Understanding repayments

The Canada Education Savings Program (CESP) within Employment and Social Development Canada (ESDC), is responsible for administering the following education savings incentives available to eligible beneficiaries of Registered Education Savings Plans (RESPs):

  • Basic Canada Education Savings Grant (Basic CESG)
  • Additional Canada Education Savings Grant (Additional CESG)
  • Canada Learning Bond (CLB)
  • Saskatchewan Advantage Grant for Education Savings (SAGES)
  • British Columbia Training and Education Savings Grant (BCTESG)

Consult the Appendix C for a list of acronyms and terms used in this guide

1. Overview

This appendix provides repayment guidelines and explains how RESP promoters must report repayment transactions to the CESP system for the incentives administered by ESDC.

1.1. What is a repayment

Certain circumstances require a repayment of education savings incentives from an RESP to the Government of Canada or designated provincial programs. These circumstances are specified in the Canada Education Savings Regulations, provincial regulations and CESP operational policies.

1.2. What is the repayment process

RESP promoters are responsible for:

  1. recognizing and identifying circumstances that require incentive repayments;
  2. determining incentive amounts to repay; and
  3. reporting transactions to the CESP system which indicate the amounts of incentives to repay and the repayment reasons.

Each month, the CESP system calculates the combined repayment amounts reported for each promoter. These reported amounts are subtracted from the total amount of incentives that would otherwise be paid to each promoter at the end of the month.

1.3. What is a repayment transaction

To report repayment transactions, RESP promoters must submit repayment records to the CESP system. As these records have a record type (RT) of 400 and a transaction type of 21, they are frequently referred to as “400-21” records in CESP technical documents.

Repayment records provide information using the key fields defined in the following table:

Key field names Explanation
Specimen Plan ID Identifies the specimen plan for the RESP from which the repayment is made
Contract ID Identifies the RESP from which the repayment is made
Beneficiary SIN (Social Insurance Number) Provides the beneficiary’s SIN and is mandatory only when repaying CLB amounts
Repayment Reason Reason for repayment
Grant Amount Amount of the CESG to repay
CLB Amount Amount of the CLB to repay
SAGES Amount Amount of the SAGES to repay
BCTESG Amount Amount of the BCTESG to repay

For additional technical information, consult the CESP Interface Transaction Standards (ITS) on the Canada.ca/RESPresources webpage under the Systems Documentation tab.

1.4. Reporting multiple incentive repayments in a single record

Promoters can submit a separate record to the CESP system for each incentive that must be repaid from an RESP.

Promoters may also report repayments of multiple incentives in the same record if these incentives are being repaid from the same RESP, for the same repayment reason.

However, as CLB repayment records must include the Social Insurance Number (SIN) of the beneficiary for whom the CLB was originally paid in the RESP, promoters must submit separate CLB repayment records for each individual beneficiary in family RESPs.

1.5. Impact of repayments on future incentive payments

CESG grant room: RESPs can receive a maximum accumulated amount of $7,200 in CESG payments per beneficiary. This lifetime limit includes payments of both the Basic and the Additional CESG amounts that were made to all RESPs for a particular beneficiary. Each CESG amount that the CESP pays into an RESP is subtracted from the available CESG balance of the beneficiary for whom the CESG was paid. As the repayment of the CESG is at the plan level, the CESP system does not restore repaid CESG amounts to the CESG grant room of individual beneficiaries.

SAGES grant room: RESPs can receive a maximum accumulated amount of $4,500 in SAGES payments per beneficiary and this lifetime limit includes payments made to all RESPs for a particular beneficiary. Each SAGES amount that the CESP pays into an RESP is subtracted from the available SAGES balance of the beneficiary for whom the SAGES was paid. As the repayment of the SAGES is at the plan level, the CESP system does not restore repaid SAGES amounts to the SAGES grant room of individual beneficiaries.

BCTESG entitlement: each eligible beneficiary is entitled to a single BCTESG payment of $1,200 into one eligible RESP. Once an RESP receives a BCTESG payment for an eligible beneficiary, the CESP system will refuse the payments of subsequent BCTESG requests for that beneficiary. The BCTESG repayments are at the plan level and do not restore the BCTESG entitlement to beneficiaries named in the RESP. Therefore, once the BCTESG has been paid to an RESP for an eligible beneficiary, subscribers cannot request repaid BCTESG amounts again for that beneficiary.

CLB entitlement: the maximum amount of the CLB that could be paid into the RESPs of each eligible beneficiary is $2,000. The CLB repayments are at the beneficiary level and do not affect a beneficiary’s lifetime entitlement for the CLB. The CLB amounts repaid for a beneficiary are restored to that beneficiary’s CLB entitlement which could be paid again for the same beneficiary.

1.6. Reversing and cancelling transactions

This section explains the purpose of reversing or cancelling transactions and compares the associated consequences with submitting repayment transactions to the CESP system.

1.6.1. When should promoters reverse or cancel transactions?

When promoters submit transactions with inaccurate information and these transactions are successfully processed by the CESP system, the promoter must either reverse or cancel these transactions. Then, new transactions may be submitted with accurate information as required.

Transactions should be reversed or cancelled only to correct administrative errors. For example, if an incentive is requested for the wrong beneficiary in a family RESP, that request must be reversed or cancelled and a new request must be submitted to the CESP system for the correct beneficiary. See section 1.6.5. What is an administrative error? of this appendix for additional information.

Promoters must not reverse or cancel transactions solely to remove a penalty or to gain a greater benefit. For example, a subscriber may have instructed a promoter to make an RESP contribution that exceeded the lifetime $50,000 contribution limit for a beneficiary. The promoter is responsible for reporting this contribution to the CESP system and should not reverse the contribution transaction at a later date simply to avoid the corresponding tax penalties.

In general:

  • federal incentive requests must be reversed by submitting a record type “400” with the “Reversal Flag” field set to “2”; whereas
  • requests for provincial incentives must be cancelled by submitting a 410-31 transaction for the SAGES or a 411-41 transaction for the BCTESG.

1.6.2. The three-year rule for incentive requests

Promoters submit RESP transactions to the CESP system for processing on a monthly basis. These transactions include requests for incentive payments and are submitted electronically to the CESP system.

Promoters must specify a transaction date for each incentive request. The following table specifies how promoters must determine the transaction date for each incentive:

Incentive Transaction date that must be used in the incentive request
CESG The RESP contribution date
CLB The CLB application form completion date
SAGES Most recent of two dates:
  • the SAGES application form completion date; or
  • the RESP contribution date
BCTESG The BCTESG application form completion date

To attract a payment into an RESP, the transaction date of the incentive request must be less than three years before the date that the promoter sends the transaction to the CESP system. While an incentive request older than three years may still be processed by the CESP system, the payment would be refused for this request with a refusal reason “D” (late transaction).

Promoters are responsible for ensuring that accurate and complete information is successfully processed by the CESP system, regardless of the age of the original transaction. If a late incentive request is required to correct an administrative error, the promoter may request an exemption to override refusal reason “D”. See section 1.6.5 What is an administrative error? of this appendix for additional information.

The three-year rule is not a three-year window in which subscribers are allowed to change their minds about RESP transactions. Promoters must not reverse accurate transactions that were successfully processed by the CESP system solely to remove a penalty or to gain a better benefit, simply because the original transaction is less than three years old. For example, a promoter should not reverse an authentic contribution transaction simply because it did not attract a CESG payment.

1.6.3. Impact on future incentive payments

When an incentive request is successfully reversed or cancelled, the grant room or entitlement for the incentive would be restored to the amount it would have been if the original request was never processed by the CESP system.

For example, cancelling a request for BCTESG would restore the original BCTESG entitlement for a beneficiary, such that another BCTESG request for the same beneficiary could attract a new BCTESG payment to an RESP.

1.6.4. Comparing repayments with reversing or cancelling requests

It is important to understand the difference between:

  • repaying an incentive; and
  • reversing or cancelling an incentive request.

While the impact on RESP notional accounts may appear to be the same in some cases, the entitlement of future incentive payments may be different.

Repaying an incentive: a repayment of any incentive (other than CLB) is not restored to a beneficiary’s entitlement for the incentive. For additional information, see section 1.5 Impact of repayments on future incentive payments of this appendix.

Reversing or cancelling an incentive request: reversing or cancelling an incentive request restores the beneficiary’s entitlement for that incentive to the amount it would have been if the original incentive request was never processed by the CESP sysem.

In general, promoters should:

  • use the guidelines in this appendix to determine when incentives must be repaid; and
  • reverse or cancel incentive requests only to correct administrative errors.

1.6.5. What is an administrative error?

An administrative error occurs when a subscriber’s instructions are not accurately reflected in the transactions that the promoter submits to the CESP system.

For example, a subscriber may have instructed a promoter to withdraw $1,000 from a particular bank account and contribute the full amount into a specific RESP in respect of a particular beneficiary. The following would be examples of administrative errors concerning the contribution transaction
(400-11) that the promoter must submit to the CESP system:

  • an inaccurate amount is reported (e.g. $100 instead of $1,000);
  • the wrong beneficiary is reported (e.g. a sibling).

When a promoter identifies and corrects an administrative error, the discrepancy between the subscriber’s instructions and the transaction submitted to the CESP system must be documented as the promoter may be required to provide this documentation for the purpose of a compliance review.

To correct an administrative error, promoters may need to reverse previous inaccurate transactions and submit new transactions with accurate information. If a new incentive request is required to correct the error, but the transaction date is more than three years old, the promoter can contact a CESP promoter support officer to request an exemption to override the three-year rule for that transaction. Each exemption request must be validated and approved by the CESP based on specific details provided by the promoter.

1.6.6. Reversing repayment transactions

A repayment transaction can also be reversed to correct an administrative error. For example, a promoter may have made a repayment from the wrong RESP. When promoters reverse a repayment transaction, the RESP is returned to the state it would have been if the repayment transaction was never successfully processed by the CESP system.

2. Mandatory reporting of RESP transactions

The Promoter Agreement 4.3(a) compels promoters to report transactions in and out of an RESP that are made after 1997 – this includes the reporting of any and all transactions that occur within the RESP, regardless of whether there is a positive amount in the dollar field, or if the amount is zero ($0).

Here are examples of some RESP activities required to be reported as repayment reasons. See 3. Repayment reason guidelines of this appendix for more information.

  • a withdrawal of contributions;
  • a plan termination;
  • an accumulated income payment (AIP);
  • the Canada Revenue Agency (CRA) revokes the registration of an RESP;
  • a payment to a designated educational institution is made;
  • ineligible beneficiary replacement;
  • ceases to meet the sibling only requirement;
  • ineligible transfer, etc.

3. Repayment reason guidelines

The CESP ITS lists 12 potential repayment reasons that promoters can use to report repayment transactions to the CESP system:

  • 01 – Contribution withdrawal
  • 02 – AIP
  • 03 – Contract termination
  • 04 – Ineligible transfer
  • 05 – Ineligible beneficiary replacement
  • 06 – Payment to educational institution
  • 07 – Revocation
  • 08 – Ceases to meet sibling only condition
  • 09 – Deceased
  • 10 – Overcontribution withdrawal
  • 11 – Other
  • 12 – Non-resident

While some of these repayment reasons correspond to specific regulatory requirements, other repayment reasons are available for administrative purposes.

Each ITS repayment reason is explained in a separate sub-heading under this section to identify:

  • circumstances that trigger repayments;
  • incentives administered by ESDC that must be repaid;
  • incentive amounts that must be repaid.

This section also specifies repayment transactions that promoters must submit to the CESP system. Promoters are encouraged to consult section 4. Transaction checklists of this appendix to ensure that repayment transactions are used appropriately and all required RESP activity is reported to the CESP system.

3.1. Reason “01” – Contribution withdrawal

Trigger: contributions are withdrawn from an RESP.

Incentives that must be repaid: the CESG and the SAGES.

Promoters should NOT submit a repayment transaction (400-21) using repayment reason “01” in the following situations:

  • if contributions are withdrawn to correct an overcontribution, promoters must submit a repayment transaction (400-21) using repayment reason “10”. See 3.10. Reason “10”Overcontribution withdrawal in this appendix for more information;
  • if contributions are withdrawn when a beneficiary of the RESP is eligible for an educational assistance payment (EAP), the promoter must submit a post-secondary education (PSE) contribution withdrawal transaction (400-14) and the repayment of the CESG or the SAGES is not required.

In all other situations, when subscribers withdraw RESP contributions and the CESG or the SAGES have been paid into the RESP:

  • promoters must submit a repayment transaction (400-21) using repayment reason “01” for the incentives that were paid to the RESP, even if the amounts to repay are zero at the time of the withdrawal.

3.1.1. Calculating the CESG amount to repay for reason “01”

RESP contributions are deemed to be withdrawn from RESP notional accounts in the following order:

  1. assisted contributions made in 1998 or later;
  2. unassisted contributions made in 1998 or later;
  3. unassisted contributions made prior to 1998.

An assisted contribution is an RESP contribution that has attracted a CESG payment to the RESP. An unassisted contribution is an RESP contribution that has not attracted a CESG payment to the RESP.

The CESG repayment amount due to a withdrawal of assisted contributions is equal to:

A / B x C

Where:

A = balance in the CESG account of the RESP immediately before the withdrawal of assisted contributions
B = balance of the total assisted contributions in the RESP immediately before the withdrawal of assisted contributions
C = amount of the assisted contributions withdrawal

If all assisted contributions have been withdrawn while a beneficiary was eligible for an EAP (in PSE contribution withdrawals), unassisted contributions and the CESG could still remain in the RESP. If these unassisted contributions are subsequently withdrawn from the RESP when a beneficiary is no longer eligible for an EAP, the amount of the CESG to repay would be zero.

3.1.2. Calculating the SAGES amount to repay for reason “01”

The SAGES repayment amount due to a withdrawal of contributions is equal to the lesser of the following amounts:

  • 10% of the withdrawal amount;
  • the SAGES account balance before the withdrawal.

The government of Saskatchewan may waive the requirement for a SAGES repayment due to the withdrawal of contributions if the repayment would cause undue hardship for a subscriber.

To request a waiver of repayment of the SAGES, the subscriber must complete and submit the Request for Waiver of Repayment of the SAGES form for an existing RESP and submit it to the Saskatchewan Ministry of Advanced Education within 12 months of the contribution withdrawal. For additional information, see Chapter 2–4: Saskatchewan Advantage Grant for Education Savings, 8.2.2. Waiver of repayment.

3.2. Reason “02” – AIP

Trigger: an AIP is made.

Incentives that must be repaid: the CESG, the CLB, the SAGES and the BCTESG.

An AIP is a taxable distribution of accumulated income in an RESP that is normally made to a subscriber. The AIP may include accumulated income on contributions and incentives, but it does not include the actual contributions or incentives themselves.

Rollovers to a registered retirement savings plan (RRSP): AIPs have to be included in the subscriber's income for the year the payments are received. The payments are subject to a 20% (12% for residents of Quebec) additional tax on top of the regular tax rate payable on the subscriber's income. The subscriber can reduce or eliminate this additional tax by contributing the AIPs to his or her RRSP or to a spousal RRSP, up to a maximum of $50,000.

Rollovers to a registered disability saving plan (RDSP): for 2014 and later years, a subscriber of an RESP that allows AIPs and a holder of an RDSP may jointly elect with the prescribed CRA rollover form (RC435), to transfer an AIP under the RESP to the RDSP if, at the time of the election, the RESP beneficiary is also the beneficiary of the RDSP.

For additional information about rollovers, consult the CRA Income Tax Information Circular IC93-3R2.

AIPs may be made only if all of the following conditions are met:

  • the subscriber is a resident of Canada;
  • the payment is made to, or on behalf of, a subscriber and not jointly to, or on behalf of, more than one subscriber;

AND

  • the plan has been in existence for at least 10 years and each living individual who is, or was a beneficiary under the plan, has reached 21 years of age before the payment is made and is not currently eligible to receive EAPs; or
  • the payment is made in the year it is required to be terminated, or
  • each individual, who was a beneficiary under the plan, is deceased when the payment is made.

When AIPs are made and the CESG, the CLB, the SAGES or the BCTESG has been paid into the RESP:

  • promoters must submit a repayment transaction (400-21) using repayment reason “02” for the incentives that were paid to the RESP, even if the amounts to repay are zero at the time of the AIP.

3.2.1. Calculating the incentive amounts to repay for reason “02”

When AIPs are made, the remaining amounts of the following incentives in the plan (immediately before the AIP) must be repaid:

  • the CESG
  • the CLB
  • the SAGES
  • the BCTESG

3.2.2. Other AIP consequences

Once an AIP has been made from an RESP:

  • the RESP must be terminated before March in the year after the year in which the first AIP is made; and
  • a transfer is no longer permitted from this RESP.

3.3. Reason “03” – Contract termination

Trigger: the RESP is terminated.

Incentives that must be repaid: the CESG, the CLB, the SAGES and the BCTESG.

The terms and conditions of an RESP contract specify when a plan must be terminated. RESPs must be terminated by the promoter at the end of the 35th year, after the end of the year in which it was deemed to have been opened (40th year for individual RESPs in which the beneficiary is eligible for a disability tax credit). Following the transfer of RESP funds, the receiving RESP is deemed to have been opened on the earliest effective date of the relinquishing and the receiving RESPs.

When an RESP is terminated and the CESG, the CLB, the SAGES or the BCTESG has been paid into the RESP:

  • promoters must submit a repayment transaction (400-21) using repayment reason “03” for the incentives that were paid to the RESP, even if the amounts to repay are zero at the time of the contract termination.

3.3.1. Calculating the incentive amounts to repay for reason “03”

When an RESP is terminated, the remaining amounts of the following incentives in the plan (immediately before the termination) must be repaid:

  • the CESG
  • the CLB
  • the SAGES
  • the BCTESG

3.3.2. Other potential repayment reasons when RESPs are terminated

Depending on how the funds in an RESP are distributed when an RESP is terminated, promoters may need to report multiple repayment transactions with different repayment reasons. Promoters must submit a repayment transaction (400-21) for each of the reasons specified in the following sequence when the circumstances occur:

  1. Reason 01 – Contribution withdrawal; when RESP contributions are returned to the subscriber(s) and the withdrawal of contributions would trigger the repayment of the CESG or the SAGES.
  2. Reason 02 – AIP; when an AIP is paid from the RESP.
  3. Reason 06 – Payment to educational institution; when the required conditions have not been satisfied for an AIP and a payment of accumulated income is made instead to a designated educational institution in Canada.
  4. Reason 03 – Contract termination; when the promoter or the subscriber terminates an RESP or an RESP must be terminated because it is deemed to have been opened for the maximum duration.

3.4. Reason “04” – Ineligible transfer

Trigger: an RESP does not satisfy the conditions for an eligible transfer.

Incentives that must be repaid: the CESG, the CLB, the SAGES and the BCTESG.

An ineligible transfer occurs when the required conditions have not been met. Chapter 3-1, RESP transfers and the education savings incentives specifies the required conditions for an eligible transfer of each incentive administered by ESDC.

When an ineligible transfer occurs and the CESG, the CLB, the SAGES or the BCTESG has been paid into the RESP:

  • the relinquishing promoter must submit a repayment transaction (400-21) using repayment reason “04” for the incentives that were paid to the RESP, even if the amounts to repay are zero at the time of the ineligible transfer.

3.4.1. Calculating the incentive amounts to repay for reason “04”

When an ineligible transfer occurs, the remaining amounts of the following incentives in the relinquishing RESP (immediately before the ineligible transfer) must be repaid:

  • the CESG
  • the CLB
  • the SAGES
  • the BCTESG

3.4.2. Avoiding ineligible transfers by making pre-transfer repayments

Prior to a transfer, promoters may repay one or more incentives to avoid conditions that would otherwise result in an ineligible transfer.

For example, if the receiving promoter does not offer the SAGES, the transfer would be ineligible if it included the SAGES amounts. To avoid an ineligible transfer, the relinquishing promoter could repay the balance of the SAGES account prior to the transfer. This would allow for the eligible transfer of the remaining funds.

If the ineligible incentive is the Additional CESG, the A-B Transfer Policy allows a receiving promoter to accept a transfer including the Additional CESG provided that the receiving promoter agrees to administer the Additional CESG sibling only rule, and report the presence of the Additional CESG in subsequent transfers.

For additional information, see sections 3.4 Making pre-transfer repayments to avoid ineligible transfers and 3.5. When the receiving promoter does not offer Additional CESG in Chapter 3-1, RESP transfers and the education savings incentives.

3.5. Reason “05” – Ineligible beneficiary replacement

Trigger: an original beneficiary is replaced with an ineligible beneficiary.

Incentives that must be repaid: the CESG, the CLB, the SAGES and the BCTESG.

In both individual and family RESPs, subscribers can replace an existing beneficiary with a new beneficiary if their contract allows this replacement.

A beneficiary replacement is considered to be eligible only if:

  • the replacement beneficiary is under 21 and is a sibling of the original beneficiary; or
  • both the original and replacement beneficiaries are under 21 and are related by blood or adoption to the original subscriber of the RESP.

For all other beneficiary replacements, if the CESG, the CLB, the SAGES or the BCTESG have been paid into the RESP:

  • promoters must submit a repayment transaction (400-21) using repayment reason “05” for the incentives that were paid to the RESP, even if the amounts to repay are zero at the time of the beneficiary replacement.

3.5.1. Calculating the incentive amounts to repay for reason “05”

When an ineligible beneficiary replacement occurs, the remaining amounts of the following incentives in the plan (immediately before the ineligible beneficiary replacement) must be repaid:

  • the CESG
  • the CLB
  • the SAGES
  • the BCTESG

3.5.2. Replacing a beneficiary with a cousin

It is possible for a subscriber to choose a cousin as an eligible replacement beneficiary. For example, the subscriber could be a grandparent who is related by blood or adoption to the original and replacement beneficiaries.

However, replacement beneficiaries must also satisfy sibling-only requirements for some incentives. For more information, see 3.8 Reason “08” – Ceases to meet sibling only condition.

3.5.3. Replacing a beneficiary for whom the CLB was paid

The CLB is paid into RESPs for specific beneficiaries and can only be used in an EAP by the beneficiary for whom the CLB was paid in the RESP. In other words, the CLB cannot be shared by siblings in a family RESP. If the CLB was paid into the RESP in respect of the original beneficiary, the CLB account balance of the original beneficiary must be repaid, even when the conditions for an eligible beneficiary replacement have been satisfied. For more information, see 3.11 Reason “11” – Other.

3.6. Reason “06” – Payment to educational institution

Trigger: a payment of the accumulated income remaining in an RESP is made to a designated educational institution in Canada.

Incentives that must be repaid: the CESG, the CLB, the SAGES and the BCTESG.

The terms of an RESP can stipulate that the amount of accumulated income remaining in the RESP could be paid to a designated educational institution in Canada if:

  • a beneficiary is not eligible for an EAP; and
  • a subscriber does not qualify for an AIP.

A payment to a designated educational institution in Canada is considered a gift and not a donation. Therefore, a tax receipt will not be issued to the subscriber or to the beneficiary.

When a payment of accumulated income is made to a designated educational institution in Canada and the CESG, the CLB, the SAGES or the BCTESG has been paid into the RESP:

  • promoters must submit a repayment transaction (400-21) using repayment reason “06” for the incentives that were paid to the RESP, even if the amounts to repay are zero at the time of the payment to the educational institution.

3.6.1. Calculating the incentive amounts to repay for reason “06”

When a payment is made to a designated educational institution in Canada, the remaining amounts of the following incentives in the plan (immediately before the payment to the educational institution) must be repaid:

  • the CESG
  • the CLB
  • the SAGES
  • the BCTESG

3.7. Reason “07” – Revocation

Trigger: the Canada Revenue Agency (CRA) has revoked the registration of the RESP.

Incentives that must be repaid: the CESG, the CLB, the SAGES and the BCTESG.

If an RESP fails to comply with legislative requirements for any reason, the registration of the contract may be revoked by the CRA. The Minister of National Revenue can revoke the registration of an RESP under the following conditions:

  • the plan does not comply with the rules for registration;
  • the plan does not comply with any of its provisions;
  • excess contributions were made to the plan;
  • the plan is in a revocable position related to qualified investments; or
  • a condition under the Canada Education Savings Act (CESA), the Canada Education Savings Regulations (CESR), or a condition related to a designated provincial program, has not been met.

When the registration of an RESP is revoked by the CRA and the CESG, the CLB, the SAGES or the BCTESG has been paid into the RESP:

  • promoters must submit a repayment transaction (400-21) using repayment reason “07” for the incentives that were paid to the RESP, even if the amounts to repay are zero when the CRA revoked the plan registration.

3.7.1. Calculating the incentive amounts to repay for reason “07”

When the registration of an RESP is revoked by the CRA, the remaining amounts of the following incentives in the plan (immediately before the CRA revoked the plan registration) must be repaid:

  • the CESG
  • the CLB
  • the SAGES
  • the BCTESG

3.8. Reason “08” – Ceases to meet sibling only condition

Trigger: a cousin is named as a new beneficiary in a family RESP.

Incentives that must be repaid: the CESG, the CLB and the BCTESG.

The following incentives can be paid only into an individual RESP or a family RESP in which all of the beneficiaries are brothers and sisters (no cousins):

  • the Additional CESG
  • the CLB
  • the SAGES
  • the BCTESG

If these incentives have been paid into an eligible family RESP and the subscriber subsequently names a new beneficiary for this plan who is not a brother or sister of the other beneficiaries (a cousin), this may trigger incentive repayments.

3.8.1. Updating the “Individual/Sibling Only” status of an RESP

When a cousin is added to a family RESP, the promoter must submit a new contract information record (100-01) to the CESP system with the “Individual/Sibling only” field set to “0” (No).

3.8.2. The CESG and reason “08”

When a cousin is named as a new beneficiary in a family RESP and the Additional CESG has been paid into this RESP:

  • promoters must submit a repayment transaction (400-21) using repayment reason “08” for the CESG, even if the amount to repay is zero when the RESP ceased to satisfy the sibling only condition.

The amount of CESG to repay is the entire CESG account balance (which includes both the Basic CESG and the Additional CESG amounts) immediately before the cousin was named as a new beneficiary.

3.8.3. The CLB and reason “08”

When a cousin is named as a new beneficiary in a family RESP and the CLB has been paid into this RESP:

  • promoters must submit a repayment transaction (400-21) using repayment reason “08” for each beneficiary for whom the CLB was paid in the RESP, even if the amount to repay is zero when the RESP ceased to satisfy the sibling only condition.

The amount of the CLB to repay is the total balance of all the CLB accounts in the RESP immediately before the cousin is named as a new beneficiary.

3.8.4. The SAGES and reason “08”

While the SAGES can be paid only into an individual RESP or a family RESP in which all beneficiaries are siblings, a cousin could be added to a family RESP without having to repay any of the SAGES amounts that may have already been paid or transferred to the RESP.

The promoter should not submit a repayment transaction for the SAGES if a cousin is added to a family RESP. However, once a cousin has been named to a family RESP, promoters must stop requesting the SAGES for all subsequent contributions made to this RESP.

3.8.5. The BCTESG and reason “08”

When a cousin is named as a new beneficiary in a family RESP and the BCTESG has been paid into this RESP:

  • promoters must submit a repayment transaction (400-21) using repayment reason “08” for the BCTESG, even if the amount to repay is zero when the RESP ceased to satisfy the sibling only condition.

The amount of the BCTESG to repay is the entire BCTESG account balance immediately before the cousin was named as a new beneficiary.

3.9. Reason “09” – Deceased

Trigger: the beneficiary of the RESP is deceased.

When an RESP beneficiary dies and the CLB has been paid into the RESP in respect of the deceased beneficiary:

  • promoters must submit a repayment transaction (400-21) using repayment reason “09” for the CLB account balance of the deceased beneficiary, even if the amount to repay is zero when the beneficiary died.

The death of a beneficiary does not necessarily trigger a repayment of the other incentives administered by ESDC because these funds may be used:

  • by other beneficiaries of the same RESP;
  • by an eligible replacement beneficiary in the same RESP; or
  • transferred to another RESP.

If incentives administered by ESDC (other than the CLB) have been paid into the RESP but cannot be used in that RESP or transferred to another RESP:

  • promoters may submit a repayment transaction (400-21) using repayment reason “09” (Deceased) for the entire account balances of these incentives, even if an amount to repay is zero when the beneficiary died.

3.10. Reason 10 – Overcontribution withdrawal

Trigger: contributions are withdrawn from an RESP to correct an overcontribution for a beneficiary.

Incentives that must be repaid: the CESG and the SAGES.

From 1996 to 2006, the lifetime contribution limit was $42,000 per beneficiary and the annual contribution limit was $4,000 per beneficiary. In 2007 or later, the annual contribution limit no longer applies and the lifetime RESP contribution limit is now $50,000 per beneficiary. This lifetime limit applies for all contributions made for a beneficiary across all RESPs in which the beneficiary is named.

Exceeding the $50,000 lifetime contribution limit per beneficiary could result in a penalty tax for the subscriber equal to 1% per month of the overcontribution amount until the excess contributions are withdrawn.

When subscribers withdraw RESP contributions to correct an overcontribution and the CESG or the SAGES has been paid into the RESP:

  • promoters must submit a repayment transaction (400-21) using repayment reason “10” for the incentives that were paid to the RESP, even if the amounts to repay are zero at the time of the withdrawal.

3.10.1. Calculating the CESG amount to repay for reason “10”

RESP contributions are deemed to be withdrawn from the RESP notional accounts in the following order:

  1. assisted contributions made in 1998 or later;
  2. unassisted contributions made in 1998 or later; then
  3. unassisted contributions made prior to 1998.

If the lifetime contribution amount for a beneficiary was ever greater than $54,000, the CESG repayment amount due to a withdrawal to correct an overcontribution is equal to:

A / B x C

Where:

A = balance in the CESG account of the RESP immediately before the withdrawal of assisted contributions

B = balance of the total assisted contributions in the RESP immediately before the withdrawal of assisted contributions

C = amount of the assisted contributions withdrawal

If the lifetime contribution amount for a beneficiary was always $54,000 or less, the CESG repayment amount due to a withdrawal to correct an overcontribution is equal to zero.

For example, Julie was named in only one RESP that was opened by her parents and she was the only beneficiary named in that plan (individual plan). The following table shows the notional account balances on January 1, 2018:

Incentive Unassisted contributions Total contributions CESG
$36,000 $13,500 $49,500 $7,200

On January 15, 2018, Julie’s parents contributed another $5,000 into the RESP, bringing Julie’s lifetime contribution amount to $54,500,

On February 3, 2018, the promoter informed Julie’s parents that the most recent $5,000 contribution resulted in Julie’s lifetime contribution amount exceeding the $50,000 limit by 4,500. To minimize the 1% tax penalty per month on the amount that exceeded the $50,000 lifetime limit, Julie’s parents asked the promoter to immediately withdraw $4,500 from their contributions. As Julie’s lifetime contributions had exceeded the $54,000 limit, the prescribed formula must be used to determine the amount of CESG to repay:

CESG amount to repay = A / B x C

Where:

A = $7,200

B = $36,000

C = $4,500

Therefore, the amount of CESG that the promoter must repay is:

A / B x C = $7,200 / $36,000 x $4,500 = $900

It should be noted that the promoter must withdraw the full $4,500 from the assisted contribution notional account because all assisted contributions must be withdrawn before any unassisted contributions can be withdrawn.

Had the contribution on January 15, 2018, been only $4,000, the lifetime contribution amount would have been only $53,500. As this would have been less than $54,000, Julie’s parents could have withdrawn $3,500 to correct Julie’s lifetime overcontribution amount without having to repay any CESG.

The subscriber is required to complete and provide the RESP promoter with the form entitled Subscriber Statement for an RESP Overcontribution Withdrawal of $4,000 or less. See Appendix D: Forms index – education savings incentives. This document must be kept with the client’s file; it represents a record as to why the RESP promoter did not submit a CESG repayment amount when a withdrawal of contributions occurred.

For more information, see section 8.2. Withdrawal of contributions in Chapter 2–1: The Canada Education Savings Grant (CESG).

3.10.2. Calculating the SAGES amount to repay for reason “10”

If the lifetime contribution amount for a beneficiary was ever greater than $54,000, the SAGES repayment amount due to a withdrawal to correct the overcontribution is equal to the lesser of the following amounts:

  • 10% of the withdrawal amount;
  • the SAGES account balance before the withdrawal.

The government of Saskatchewan may waive the requirement for a SAGES repayment due to the withdrawal of contributions if the repayment would cause undue hardship for a subscriber.

To request a waiver of repayment for the SAGES, the subscriber must complete and submit the SAGES Waiver of Repayment form for an existing RESP and submit it to the Saskatchewan Ministry of Advanced Education within 12 months of the RESP contribution withdrawal transaction date. For additional information, see Chapter 2–4: Saskatchewan Advantage Grant for Education Savings, 8.2.2. Waiver of repayment.

If the lifetime contribution amount for a beneficiary was always $54,000 or less, the SAGES repayment amount due to a withdrawal to correct an overcontribution is equal to zero.

3.11. Reason “11” – Other

Trigger: a miscellaneous situation occurs.

Incentives that may be repaid: the CESG, the CLB, the SAGES and the BCTESG.

  • Promoters may use this repayment reason to repay incentives for situations that do not fall under another reason code. In some cases, CESP promoter support officers may also instruct promoters to use this repayment reason.

3.11.1. When an EAP is made to an individual who is not a beneficiary

If an EAP is made to an individual who is not a beneficiary of the RESP and the CESG, the CLB, the SAGES or the BCTESG has been paid to the RESP:

  • promoters must submit a repayment transaction (400-21) using repayment reason “11” for the incentives that were paid to the RESP, even if the amounts to repay are zero.

When an EAP is made to an individual who is not a beneficiary of the RESP, the remaining amounts of the following incentives in the plan at the time of the EAP must be repaid:

  • the CESG
  • the CLB
  • the SAGES
  • the BCTESG

3.11.2. The CLB and reason “11”

If there was an eligible beneficiary replacement of a beneficiary for whom the CLB was paid to the RESP:

  • promoters must submit a repayment transaction (400-21) using repayment reason “11” for the CLB, even if the amount to repay is zero.

The amount of the CLB to repay is the entire account balance of the original beneficiary for whom the CLB was paid in the RESP.

3.11.3. The BCTESG and reason “11”

If all or part of the BCTESG was withdrawn from the RESP and not used in an EAP, or if an application for the BCTESG contained false information:

  • promoters must submit a repayment transaction (400-21) using repayment reason “11” for the BCTESG in the RESP, even if the amount to repay is zero.

The amount of BCTESG to repay is the entire BCTESG account balance.

3.12. Reason “12” – Non-resident

Trigger: the beneficiary no longer satisfies residency requirements.

Incentives that may be repaid: the CESG, the CLB, the BCTESG and the SAGES

This repayment reason “12” can be used to repay incentives when the beneficiary no longer satisfies the required residency requirements.

3.12.1. The CESG and reason “12”

Promoters should request the CESG payments for an RESP contribution only if the beneficiary was a resident of Canada at the time of the contribution. If a promoter learns that contributions were made for a beneficiary after a family has moved and the beneficiary is no longer considered to be a resident of Canada:

  • promoters must submit a repayment transaction (400-21) using repayment reason “12”; and
  • the amount of the CESG repaid should correspond to the CESG amounts that were paid into the RESP for these ineligible contributions.

The Canada Education Savings Regulations also specify the amount of CESG to include in an EAP. However, promoters can include this CESG amount in an EAP only if the beneficiary is considered to be a resident of Canada for income tax purposes at the time of the EAP. If the beneficiary does not satisfy EAP residency criteria to receive the CESG portion in an EAP, the promoter should not repay this CESG amount. This CESG amount can remain in the RESP until the plan has been terminated by the subscriber, or until the beneficiary satisfies the required criteria to receive the CESG in an EAP.

3.12.2. The CLB and reason “12”

The CLB can be paid into an RESP only if the beneficiary was a resident of Canada immediately before the CLB payment is made. If a promoter learns that an RESP has received the CLB payments for a beneficiary after a family has moved and the beneficiary is no longer considered to be a resident of Canada:

  • promoters must submit a repayment transaction (400-21) using repayment reason “12”; and
  • the amount of CLB repaid should correspond to the CLB amount(s) paid into the RESP after the beneficiary was no longer considered to be a resident of Canada.

The Canada Education Savings Regulations also specify the amount of CLB to include in an EAP. However, promoters can include this CLB amount in an EAP only if the beneficiary is considered to be a resident of Canada for income tax purposes at the time of the EAP. If the beneficiary does not satisfy EAP residency criteria to receive the CLB portion in an EAP, the promoter should not repay this CLB amount. This CLB amount can remain in the RESP until the plan has been terminated by the subscriber or until the beneficiary satisfies the required criteria to receive CLB in an EAP.

3.12.3. The BCTESG and reason “12”

The BCTESG can be paid into an RESP only if the beneficiary and custodial parents (or legal guardian) are residents of British Columbia at the time of the application. The subscriber and custodial parent (or legal guardian) must sign a declaration on the BCTESG application form to confirm that this residency criterion has been satisfied.

If a promoter learns that an RESP has received a BCTESG payment and the application for BCTESG contained false information concerning the residency criteria:

  • promoters must submit a repayment transaction (400-21) using repayment reason “12”; and
  • the full amount of BCTESG received as a result of this application should be repaid.

3.12.4. The SAGES and reason “12”

Promoters may request SAGES for an RESP contribution only if the beneficiary was a resident of Saskatchewan at the time of the contribution.

Subscribers are responsible for informing promoters about changes to beneficiary residency status and promoters must not request new SAGES payments for contributions made after subscribers inform them that a beneficiary no longer satisfies the SAGES residency criteria.

If a subscriber informs a promoter about changes to beneficiary residency status after the SAGES has been paid for ineligible contributions, these SAGES amounts cannot remain in the RESP.

Rather than submitting a repayment transaction (400-21) to repay these subsequent SAGES amounts with a repayment reason of “12” (which would not restore the repaid amounts to the beneficiary’s grant room) promoters should cancel the SAGES requests (410-31) instead. Cancelling the SAGES requests will restore the corresponding SAGES amounts to the beneficiary’s grant room, which would remain available if the beneficiary becomes a resident of Saskatchewan in the future.

4. Transaction checklists

Promoters are encouraged to consult the following checklists in this section to ensure that all required RESP activity is reported to, and successfully processed, by the CESP system when the circumstances or assets of an RESP have changed:

  • 4.1 Plan terminations
  • 4.2 Withdrawal of contributions
  • 4.3 Transfers
  • 4.4 Adding cousins to family RESPs

See section 3. Repayment reason guidelines in this appendix for additional information about each repayment reason, concerning:

  • circumstances that trigger repayments;
  • incentives administered by ESDC that must be repaid; and
  • incentive amounts that must be repaid.

4.1. Plan terminations

When an RESP is terminated, promoters can use the following checklist to ensure that all appropriate transactions have been submitted to the CESP system.

  • Are there contributions remaining in the RESP that will be returned to the subscriber(s)?

    If the answer to this question is yes and the withdrawal of these contributions would normally trigger the repayment of the CESG or the SAGES, repayment transactions must be submitted for these incentives using reason “01”, even if the repayment amounts are zero.

  • Has an AIP been paid from this RESP?

    If the answer to this question is yes, after repaying the required amounts of incentives for repayment reason “01” (if applicable), the repayment of all remaining amounts of the CESG, the CLB, the SAGES and the BCTESG must then be repaid using reason “02”. A repayment transaction is mandatory for repayment reason “02”, even if the repayment amounts are zero.

  • Has there been a payment of accumulated income to a designated educational institution in Canada (because the conditions to receive an AIP have not been satisfied)?

    If the answer to this question is yes, after repaying the required amounts of incentives for repayment reason “01” (if applicable), the repayment of all remaining amounts of the CESG, the CLB, the SAGES and the BCTESG must then be repaid using reason “06”. A repayment transaction is mandatory for repayment reason “06”, even if the repayment amounts are zero.

  • Has the subscriber asked the promoter to terminate the RESP (or must the RESP be terminated because it has been open for the maximum time limit)?

    If the answer to this question is yes, after reporting the required transactions with repayment reasons “01”, “02” and “06” (if applicable), the repayment of any remaining incentives administered by ESDC must be repaid using reason “03”. Repayment transactions are mandatory for repayment reason “03”, even if the repayment amounts are zero.

  • Did the primary caregiver (PCG) designate this RESP as being the RESP that will receive the annual CLB payments?

    If the answer to this question is yes, to stop subsequent CLB payments to this RESP, the promoter must submit a CLB request (400-24) to the CESP system with the “Grant Requested” field set to “0” (No) for each beneficiary with an active CLB request in the RESP.

4.2. Withdrawal of contributions

When contributions are withdrawn from an RESP, promoters can use the following checklist to ensure that all appropriate transactions have been submitted to the CESP system.

  • Have there been investment losses in the RESP assets at the time of contract termination?

    If the answer to this question is yes, the promoter must subtract the notional account balances of all incentives in the RESP from the fair market value of the RESP to determine the maximum amount of contributions that can be returned to the subscriber.

  • Is a beneficiary in the RESP eligible to receive an EAP?

    If the answer to this question is yes and the promoter receives the required proof of enrollment to process an EAP request, a contribution withdrawal must be reported to the CESP system using a PSE contribution withdrawal (400-14) transaction. As contribution withdrawals in this situation do not trigger a repayment of the CESG or the SAGES, a repayment transaction (400-21) is not required.

  • Was the withdrawal of contributions to correct an overcontribution for a beneficiary?

    If the answer to this question is yes and the CESG or the SAGES have been paid into this RESP, the promoter must report a repayment transaction using reason “10” for the CESG and the SAGES, even if the amounts to repay are zero.

    If the overcontribution amount is not greater than $4,000, the amounts of the CESG and the SAGES to repay are zero. Otherwise, the prescribed formulas must be used to calculate the amount of the CESG and the SAGES to repay.

  • If the withdrawal of contributions would normally trigger the repayment of the SAGES, would this repayment cause undue hardship to the subscriber?

    If the answer to this question is yes, the promoter may inform the subscriber about the process to request a waiver of repayment for the SAGES. The subscriber must complete and submit the Request for Waiver of Repayment of the SAGES form for an existing RESP and submit it to the Saskatchewan Ministry of Advanced Education within 12 months of the contribution withdrawal.

    For additional information, see Chapter 2–4: Saskatchewan Advantage Grant for Education Savings, 8.2.2. Waiver of repayment.

4.3. Transfers

When funds are transferred from an RESP, promoters can use the following checklist to ensure that all appropriate transactions have been submitted to the CESP system.

  • Are there any conditions that have not been satisfied for the eligible transfer of all incentives?

    If the answer to this question is yes, the promoter must submit a repayment transaction using repayment reason “04” for the CESG, the CLB, the SAGES and the BCTESG in the relinquishing RESP.

    Prior to the transfer, the promoter may also repay only the incentives that would otherwise result in an ineligible transfer, using repayment reason “04”, and then transfer all remaining assets in an eligible transfer.

  • Are there pending applications for incentives in the relinquishing RESP?

    If the answer to this question is yes, the promoter of the relinquishing RESP must transfer any pending applications of incentives to the receiving promoter if they are paid to the relinquishing RESP after the initial transfer. New transfer-out transactions (400-23) and transfer-in transactions (400-19) must also be submitted to the CESP system to report these subsequent transfer amounts. Relinquishing promoters must also send amended transfer forms to the receiving promoters to indicate any subsequent transfer of funds.

  • Has the subscriber made arrangements to terminate the RESP after a full transfer has been completed?

    If the answer to this question is yes, the relinquishing promoter must submit a repayment transaction using repayment reason “03”, even if the incentive amounts to repay are zero.

  • If the relinquishing RESP will be terminated, did the PCG designate the relinquishing RESP as the RESP that will receive the annual CLB payments?

    If the answer to this question is yes, to stop the subsequent CLB payments to the relinquishing RESP, the relinquishing promoter must submit a CLB request (400-24) to the CESP system with the “Grant Requested” field set to “0” (No) for each beneficiary with an active CLB request in the relinquishing RESP.

4.4. Adding cousins to family RESPs

When a cousin is added as a new beneficiary to a family RESP, promoters can use the following checklist to ensure that all appropriate transactions have been submitted to the CESP system.

  • Has the “Individual/Sibling only” designation for the RESP been updated in the CESP system?

    When a cousin is named as a new beneficiary in an existing family RESP, the promoter must submit a new contract information (100-01) record to the CESP system with the “Individual/Sibling only” field set to “0” (No).

  • Have there been any payments of the Additional CESG to the RESP?

    If the answer to this question is yes, the promoter must submit a repayment transaction using reason “08” for the CESG. The entire CESG account balance, prior to adding the cousin, must be repaid. The CESG account balance includes both the Basic and the Additional CESG amounts paid into or transferred to the RESP.

  • Has the CLB been paid to the RESP?

    If the answer to this question is yes, the promoter must submit a separate repayment transaction for the CLB using reason “08”, for each beneficiary for whom the CLB was paid, to repay the entire CLB account balance of each beneficiary in this RESP.

  • Has the SAGES been paid to the RESP?

    If the answer to this question is yes, the promoter must stop requesting the SAGES for all RESP contributions made after adding a cousin to the RESP. However, any SAGES amounts that had already been paid into the RESP before the cousin was added to the plan can remain in the RESP.

  • Has the BCTESG been paid to the RESP?

    If the answer to this question is yes, the promoter must submit a repayment transaction using reason “08” for the BCTESG. The entire BCTESG account balance, prior to adding the cousin, must be repaid.

5. Repayments and investment losses

5.1. Order of losses in an RESP

Promoters must consider RESP investment losses to be applied:

  • first to the accumulated income in an RESP;
  • then to the RESP contributions; and
  • if all contributions in the RESP are deemed to have been depleted due to investment losses, any remaining loss is deemed to be applied proportionally to the incentives remaining in the RESP.

5.2. When there are insufficient funds to repay all incentives

If the fair market value of an RESP is reduced due to investment losses and the combined amount of incentives that must be repaid is greater than the current fair market value of the RESP, promoters are required to repay only a total amount of incentives equal to the fair market value of the RESP. If multiple incentives must be repaid from an RESP, the incentive repayments must be proportional to the incentive account balances prior to the repayment.

For example, a subscriber chooses to terminate an RESP which triggers the repayment of all remaining incentives in the plan. However, when the RESP was terminated, the fair market value was less than the combined incentive notional account balances as shown in the following table:

RESP market value Earnings Contributions CESG SAGES
$4,000 $0 $14,000 $2,800 $1,400

The amount of incentives to repay in this example would normally be $4,200:

$2,800 in CESG
+
$1,400 in SAGES
=
$4,200 total balance of all incentive notional accounts

As the fair market value was less than the total amount of incentives to repay, the promoter must repay only a total amount of $4,000 (the fair market value).

The proportions of the notional account balances for the incentives, prior to terminating the plan, were:

  • the CESG proportion = $2,800/$4,200 = 66.67% of all incentives
  • the SAGES proportion = $1,400/$4,200 = 33.33% of all incentives

The incentive amounts to repay must be in the same proportion as the incentive notional account balances before the plan was terminated:

the CESG to repay = 66.67% of the fair market value = $2,666.67
+
the SAGES to repay = 33.33% of the fair market value = $1,333.33
=
total incentive amounts repaid = fair market value = $4,000

These repayment amounts must be reported to the CESP system in a repayment transaction (400-21) with a repayment reason of “03”.

When the RESP is terminated, a termination adjustment transaction (400-22) must also be submitted to the CESP system to report the amount of incentives that cannot be repaid due to investment losses. The amounts of each incentive that must be reported as having been lost in this example are:

the CESG loss = $2,800 – $2,666.67 = $133.33
+
the SAGES loss = $1,400 –$1,333.33 = $66.67
=
total investment lost = $200

When repayment amounts are proportional to the incentive notional account balances, the investment loss is also shared by the incentives in the same proportion:

the CESG share of loss = $133.33/$200 = 66.67% of the loss
+
the SAGES share of loss = $66.67/$200 = 33.33% of the loss
=
total share of investment losses = 100%

Termination adjustments must only be used:

  • when an RESP is terminated; and
  • investment losses prevent the full repayment of all incentives.

When subscribers request contribution withdrawals after a market loss, promoters must determine the maximum contribution withdrawal amount. For additional information, see Chapter 1–3: The CESP System and Interface Transaction Standards, section 5.13.5 Withdrawing contributions after a loss.

Consult the Appendix C for a list of acronyms and terms used in this guide.

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