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Transfers, Pensions and Allowances


In determining the amount of social assistance to be granted, all non-allowable income is deducted from the social assistance to which the applicant is entitled under the Regulations.  Non-allowable income includes payments under the Canada Pension Plan, the Old Age Security Act (including the Old Age Security pension, the Guaranteed Income Supplement and the Spouse's Allowance), Veterans' Allowances, Workers' Compensation, Unemployment Insurance Benefits, strike pay and pensions to the applicant or his spouse from other sources, excluding payments from the Blue Mist II or the Blue Wave Disaster Funds, and the St. Lawrence Miners' Fund.    Regulation 2(g)

Any Canada Pension Plan benefit received by the recipient of (or applicant for) social assistance on behalf of children not included in the recipient's or applicant's requirements, is not considered as income to the recipient nor as a resource when determining eligibility.    Policy 121.02

When burial expenses are provided for a deceased person who is eligible for the Canada Pension Plan Death Benefit, the Department will apply for the lump sum benefit. Sufficient funds will be recovered from the Death Benefit to pay burial expenses and the remainder will be forwarded to the Executor of the Estate.    Policy 121.04

Payments received under the federal Child Tax Benefit are excluded from the calculation of a client's financial resources.  Also excluded are federal compensation payments to any person or to the spouse of that person who has contracted AIDS through the blood system, any person who has suffered birth defects as a result of the use of thalidomide, or any person who is eligible under the Japanese Canadian Redress Agreement. Regulation 1(d.1)

Lump Sum Payments

In the determination of eligibility for social assistance, lump sum payments which are related to or paid with respect to a specific period of time are considered as allowable, i.e., an exemption (see section 3.2) may be applied to such income.  Lump sum payments included in this category are: income tax refunds, interest or dividends from a financial institution, stipends, honorariums, severance pays, salary or wages and scholarships and bursaries.   Policy 120(e)(ii)

- see section 4.1 concerning lump sums from other sources.

Prince Edward Island

Income received under a social security program operated by any country shall be considered as income.  Sources of this income include Unemployment Insurance payments, federal training allowances, Workers' Compensation, Canada Pension Plan and Old Age Security benefits, War Veterans' Allowances, War Pensions, and any other income maintenance program.    Policy 13-4-6

Child Tax Benefits (as defined in the Income Tax Act) paid to an applicant or recipient are exempt from the calculation of income.    Regulation 12(1)

As of July 1994, income from the federal Goods and Services Tax Credit is considered as unearned income, i.e., social assistance entitlement is reduced dollar for dollar.   Regulation 12(n) repealed by E.C. 241/94

Nova Scotia - Provincial

Income from the federal Child Tax Benefit Program, the Refundable Child Tax Credit and the Goods and Services Tax Credit is not considered as income.   Regulation 44(7) - amended 01-93

Canada Pension Plan Death Benefit shall not be considered as income where it has been used to pay for funeral expenses.    Policy 05-06-11

"Unearned income", which is considered totally available for current maintenance, includes income maintenance payments, workers' compensation, insurance payments, income from mortgages, alimony and maintenance payments, income from investments such as stocks and bonds, and superannuation.    Regulation 3(p)

"Income maintenance payment" means a payment made to a person by Canada or Nova Scotia in respect of loss or presumed loss of income by reason of unemployment, loss of the principal family provider, illness, disability or age.    Regulation 3(j)

Where the applicant or spouse is receiving a War Veteran's Allowance, no Family Benefits shall be granted.    Regulation 46(1)

Where an applicant or recipient declares a retroactive payment of earned or unearned income, the amount should be pro-rated against the person's budget for the next twelve months (and benefits reduced accordingly), OR against the period actually covered by the retroactive payment (with recovery of any resulting overpayment), whichever is most beneficial to the client.    Policy 05-06-08

Where the client receives a lump sum from an asset source (insurance policy, will, etc.), and such assets exceed the allowable asset level (see section 4.1), Family Benefits may be discontinued until the assets level is reduced to the maximum allowed under the regulations.  The minimum waiting period is one month, the maximum twelve months.  The actual waiting period is determined by dividing the balance remaining, after deducting from the lump sum

i) the allowable asset level and

ii) any approved expenditures*,

by the amount that the recipient would receive if benefits were being paid. Policy 05-06-09

* NOTE : In cases noted in the preceding paragraph, the applicant or recipient may (with the Director's approval) use assets in excess of allowable levels for the purchase of or repairs to personal or family shelter or for basic necessities.    Regulation 48(3)

Nova Scotia - Municipal

Municipal social assistance applicants are subject to the income calculation policy of the municipality where they are applying; in Halifax, unearned income (charged at 100% as income) includes the following:

- Workmen's Compensation

- Unemployment Insurance benefits

- War Veteran's Allowance

- Old Age Security and Guaranteed Income Supplement

- insurance payments

- alimony and child support payments

- Canada Pension Plan benefits

- Family Benefits (except foster child allowances)    Policy 1.1.8

The Child Tax Credit, the Child Tax Benefit and the Goods and Services Tax Credit are not to be considered as chargeable income.    Regulation 4(6) - revised 01-93

For persons over 65 years of age (except persons in Homes for Special Care), the first $20 of monthly income from any source is excluded from the calculation of financial resources (Halifax).   Policy 1.1.8

New Brunswick

All pensions are considered as income and the full amount of the pension must be assessed in calculating the budget deficit.  They include Canada Pension Plan, Unemployment Insurance, Workers' Compensation, military and other pensions. Since 1994, persons 60 to 64 years of age must apply for any early retirement benefit to which they may be entitled under CPP, as a condition of initial and continuing eligibility for social assistance. Policy p.52; provincial contact

If the head of a household or spouse receives OAS/GIS, the total pension is considered as income.  If an individual, other than the head of a household or spouse, is receiving OAS/GIS and is living in a social assistance unit, 20% of the board and lodging rate is regarded as income for the Social Assistance unit.

The Child Tax Credit for 1992 and the Goods and Services Tax Credit are  excluded from the calculation of income. No official amendment to the Social Welfare Regulation has been issued concerning federal Child Tax Benefits, but CTB payments have been exempted since January 1993.   Regulation 7(2)


The calculation of financial resources shall not include income from the following:

- the federal Child Tax Benefit;

- allowances paid under the Family Assistance Allowances Act (Quebec Family Allowance, Allowance for Young Children, Allowance for Handicapped Children and Allowance for Newborn Children - see section 6.3);

- interest and amounts received in the form of real estate tax refunds, Goods and Services Tax Credits, Quebec Sales Tax Credits and Quebec income tax credits for persons providing home care for their aging parents.    Regulation 52(1,2,10)

Ontario - Provincial and Municipal

Income includes any payment received under the Old Age Security Act, the Ontario Guaranteed Annual Income Act (see section 6.1), any pension or payment received under legislation of any other country, any regular or periodic payments received under any annuity, pension plan, superannuation scheme, or insurance benefit.  The only exceptions to this policy are the following:

i) payments under the Vocational Rehabilitation Services Act,

ii) CPP/QPP Death Benefit payments,

iii) Goods and Services Tax Credits, and

iv) Federal Child Tax Benefit payments.    FBA Regulation 13(2); GWA Regulation 15(2)

Lump sum payments covering retroactive periods necessitate averaging of the amounts actually received over the number of months to which those payments apply.  This policy applies to all lump sums from the following sources:  Old Age Security, GAINS-A (see section 6.1), pensions under legislation of any other country, mortgages, agreements for sale, loan agreements, annuities, pension plans and superannuation schemes, insurance benefits, support or maintenance, payments under the Pension Act (Canada), the Unemployment Insurance Act, the War Veterans Allowance Act, the Civilian War Pensions and Allowance Act, the Compensation for Victims of Crime Act, the Workers' Compensation Act, the Quebec Pension Plan and the Canada Pension Plan (excluding the CPP/QPP Death Benefit). FBA Reg. 13(8), 13(2)(44); FBA Policy 0303-02; GWA Reg. 15(7); GWA Policy 040202

Assignments may be taken against maintenance money, Workers' Compensation, UIC and CPP benefits, or future payments from any non-exempt source to which the person is entitled during the time he or she is receiving social assistance.    FBA Policy 0303-03; GWA Policy 0402-02

A retirement pension under CPP or QPP which is available to a person prior to the month in which the person attains the age of 65 years shall not be considered as compensation or a financial resource to which the person is entitled.    FBA Regulation 9; GWA Regulation 4(2)

Manitoba - Provincial

All pension income is considered as unearned income and, as such, is totally available for current maintenance.  "Pension income" includes CPP, OAS/GIS/SPA, DVA, Crimes Compensation, Workers' Compensation, BPA/DPA, funds for the mentally retarded, private pension plans and other retirement, disability or survivor's payments.  All income from "55 Plus-A Manitoba Income Supplement" (see section 6.1) is also considered as unearned; however, since 55 Plus is paid quarterly, such income is prorated over the appropriate three-month period.    Policy E1-11-01; E1-21-03

Income from the Child Related Income Support Program (see section 6.3) is deemed to be part of the Social Allowances payment, and is counted in the same way as unearned income.    Policy E1-11-01

Lump sum payments of unearned income may be considered as an exempted liquid asset provided the household does not already exceed its liquid asset limit (see section 4.1).  Any amount of the lump sum remaining after the asset limit is reached shall be considered as totally available for current maintenance.  Unearned income lump sums could include cash replacement for material assets lost and not to be replaced, compensation for injury, disability, retirement or death, and inheritances or windfalls.    Policy E1-21-02

In the determination of financial resources, income from the following sources is excluded:

- federal Child Tax Benefit payments

- federal Goods and Services Tax Credits

- federal compensation payments to persons infected with HIV through blood transfusions or the use of blood products.   Regulation 8(1)(b)

Manitoba - Municipal

In the determination of financial resources, income from the following sources is excluded:

- federal Child Tax Benefit Payments

- federal Goods and Services Tax Credits

- federal compensation payments to persons infected with HIV through blood transfusions or the use of blood products. Regulation 7

Income tax refunds and payments received under the Child Related Income Support Program (see section 6.3) and "55 Plus" (see section 6.1) are considered as income for municipal assistance purposes.   Editorial Comment

In Winnipeg, all alternate income support programs under which a client may be eligible (e.g., Unemployment Insurance, Workers' Compensation, Canada Pension Plan, provincial Social Allowances, 55 Plus, Child Related Income Support Program) must be considered, explored and (if possible), accessed or applied for.   Municipal Policy p.2


Pensions, income tax refunds and allowances are considered as non-exempted income in the budget calculation of the recipient.  This includes the first $34.88 of the monthly payments of the federal Child Tax Benefit (the remainder of the CTB - including the Earned Income Supplement - is totally exempt), and retroactive payments of OAS/GIS, War Veterans' Allowances, Workers' Compensation, UI, CPP and other similar benefits.    Regulation 29(A)(5), 28(2)(s); Policy 18-1-9

Payments from the following sources are not considered as income in budget calculations:

- the federal Child Tax Credit for 1992

- the Japanese Canadian Redress Agreement

- the Extraordinary Assistance Plan (for persons infected with the AIDS virus by contaminated blood products)   Regulations 28(2)(a), 28(2)(dd); Policy 17-1-6

Retirement pension plans (specifically the Saskatchewan Pension Plan and the Canada Pension Plan) are not considered as financial resources for social assistance clients until age 65, because drawing early retirement means a lifetime reduction in monthly entitlement.  Funds withdrawn from SPP are exempt as long as they are retained for retirement purposes. Policy 17-1-5

NOTE : SPP was terminated in the summer of 1992.


Income from the following sources is totally exempt in the determination of the financial resources of an applicant or recipient:

- federal Child Tax Benefit, Child Tax Credit (for 1992), Goods and Services Tax Credit

- compensation from the Government of Alberta to persons infected with AIDS because of contaminated blood products

- Japanese Canadian Redress Agreement

- Extraordinary Assistance Plan.

Regulation 7(a,b,c,d,e,e.1); Policy 01-05-04

As a condition of eligibility, an applicant who is 60 to 64 years of age is required to apply for an early retirement pension under the Canada Pension Plan, but only if doing so will increase current income (a person receiving a CPP Disability Pension may see a decrease in income if he/she switches to CPP Early Retirement benefits).   Policy 05-01-03

British Columbia

"Unearned income", which is considered as a financial resource, includes money, goods, capital gains or services derived from any of the following sources:

a) money, annuities, stocks, bonds, shares and interest-bearing accounts or properties;

b) co-operative societies;

c) War disability pensions, military pensions, and War Veterans' Allowances;

d) insurance benefits, except insurance paid as compensation for a destroyed asset;

e) superannuation benefits and Canada Pension Plan benefits;

f) unemployment insurance;

g) union or lodge benefits;

h) financial assistance given by another province or jurisdiction;

i) Workers' Compensation benefits and disability payments or pensions;

j) widows' or orphans' allowances;

k) income from an estate;

l) net rental income from land, tools, vehicles, equipment, and self-contained suites, and property apart from the actual residence of a recipient (see section 3.4);

m) interest earned on mortgage or agreement of sale except where the interest is required for the amount owing on a home being purchased or rented by a recipient and occupied as his or her ordinary residence;

n) amounts payable or services obtained pursuant to an order of a court of competent jurisdiction or pursuant to a separation agreement or as a financial support agreement as maintenance for a recipient (see section 3.5);

o) federal Old Age Security and Guaranteed Income Supplement payments;

p) education or training allowances, grants, loans, bursaries, or scholarships, unless the Director authorizes all or a portion of these to be excluded as income;

q) money, goods or services derived from the provision of room and board, or from the rental or rooms that are common to and part of a recipient's actual place of residence where the Director has not authorized such money goods or services to be considered as earned income;

r) criminal injuries compensation awards, money or other property derived from a lottery or a game of chance, or other financial awards, unless the Director authorizes all or a portion of these to be excluded;

s) any other income declared by the Director to be unearned income.    Regulation 2; Regs. Sched. "B" No. 10; Policy p. 3.15.6(#23)

In determining the income of a client household, the following are totally exempted ( except in determining eligibility for special needs):

a) the Goods and Services Tax Credit,

b) the federal Child Tax Benefit and working income supplement,

c) the BC Sales Tax Credit,

d) payments from the Federal Extraordinary Assistance Plan provided to thalidomide victims and to haemophiliacs and others infected with HIV,

e) payments from BC Health to individuals infected with HIV from blood products, or to surviving spouses or dependent children of these individuals.

Income resulting from the investment of funds received under (d) and (e) above is considered unearned (i.e., unexempted).   Regulation Schedule "B"(9); Policy 3.15.4(16)

Where a household is in receipt of an allowance from the Department of Veterans Affairs or the Workers' Compensation Board and at least one person in the family unit is 60 years of age or older, there is a total exemption of the actual amount of the allowance up to $50 per month for a single person or $100 per month for someone with a spouse or dependant(s).    Policy 3.15.9

Income includes the total amount of Old Age Security and Guaranteed Income Supplement or any other statutory pension or allowance.  Family allowances, youth allowances and child tax credits are not included as income.    Regulation 18(2)(d), 18(3)(a)

Northwest Territories

Included in the calculation of income are any regular or periodic payments received under any annuity, pension plan or superannuation scheme; any pension received under the legislation of any other country; maintenance allowances paid under training programs or any income received under the Pension Act, the Canada Pension Plan, the Civilian War Pensions and Allowances Act, the War Veterans' Allowances Act, the Unemployment Insurance Act, the Old Age Security Act (including Spouse's Allowance and Guaranteed Income Supplement), the Adult Occupational Training Act, the Workers' Compensation Act, and the Old Age Assistance and Blind Persons Allowance Act.    Regulation 20(4)(d,g,j,n)

Child Tax Benefits received under the Income Tax Act (Canada) are not included as income.   Regulation 20(5)

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