PART C-Decision under Appeal The decision under appeal is the Ministry of Social Development and Social Innovation (the ministry's) reconsideration decision dated August 26, 2013 finding the appellant ineligible for disability assistance for the month of September 2013. The ministry found that in July 2013 the appellant received unearned income in the form of an inheritance, in excess of the monthly disability assistance she was eligible for in accordance with section 9(2) of the Employm•~nt and Assistance for Persons with Disabilities Regulation, PART D Relevant Legislation Employment and Assistance for Persons with Disabilities Regulation (EAPWDR) : sections 1, 9, and 24; Schedule A sections 1, 2 and 4; and Schedule, B sections 1, 6, 7, 7.1 and 8. EAATD03(10/0S/01)
PART E Summary of Facts The evidence before the ministry at the iime of reconsideration consisted of: 1) The appellant's Request for F{econsideration dated August 9, 2013 which states that the appellant "is beyond the fighting in temporary agencies and threats of diseases. My niece was working in temporary agencies at the time she vvas stabbed with Hepatitis C. The nervous tension plus when I go home they are there again. My nerves are beyond taking it, plus my teeth are rotted and it has been hard. Request for (illegible) Canada federal lawyer ascertain"; and 2) Letter from a law firm dated Juiy '18, 2013 with cheque stub attached, indicating that the appellant received a final distributive share of an estate in the amount of $1,306 37. In her Notice of Appeal the appellant states that she disagrees with the ministiy's reconsideration decision because she needs a place to iive. She states that "I can pay monthly payments to pay the rent for September. ! acknowledge I made a mist~1ke of the cheque but cannot reverse. I called and the account is way over and could not reverse". Additional documents submitted prior to the hearing with the appellant's Notice of Appeal included: 1) 10 Day Notice to End Tenancy for Unpaid Rent or Utilities from the appellant's landlord dated August 28, 2013 indicating that the appellant failed to pay rent of $500 due on August 22, 2013; 2) Bank Profile from the appellant's financird institution dated August 28, 2013 indicating that the appellant's bank account balance is $1.62 and she has RRSPs in the amount of $3,738.85; and 3) Inquiry printout from 1he appellant's bank dated August 28, 2013, confirming an account balance of $1.62. The ministry stated at the hearing that they had requested these documents from the appellant; therefore, they did not object to the documents being admitted as evidence. The panel admits them pursuant to section 22(4-)(b) of the Employment and Assistance Act as written testimony in support of the information or records that were before the minster when the decision being appealed was made. Specifically, the panel admits the Notice to End Tenancv and the bank account balance information because these records assist in determining wl1etl1er the inheritance funds received by the appellant may be considered as income rather than an asset under the EAP\NDR. The appellant did not attend the hearing. After establishing that the appellant had been notified of the hearing date and time, the l1earing proceeded under section 86(b) of the Employment and Assistance Regulation. At the hearing, the ministry surnmarized its reconsideration decision, stating that they determined that the appellant was ineligible for September 2013 disability assistance because her net income was in excess of the legislated iimit. Her payment ,tub due in /\,ugust 2013, which is used by the ministry to determine continuir.g eligibility for September, indicated that the appellant received an inheritance of approximately $1,300. The minisiry requested additionai documentation from the estate trustee which confirmed tile amoL_mt of the inheritance and that it was a one-time payment and not a trust set u for ~·-·-'" ----" -EAAT 003( 10/06/01)
,-~-~------------------------·~----------·----------the benefit of the appellant. The ministry determined that the inheritance was unearned income which is not exempt under the EAWDR and must be deducted from the income assistance payment pursuant to section 24, where it exceeds the disability assistance rate as determined under Schedule A of the regulation. The ministry explained that the appellant's rate cf ilssistance was $906.42 per month, and t11at the inheritance of approximately$ "I ,300 put he:" more t11an $400 over ihe iimit. The ministry stated that some types of funds, such as employment income. are exempt from being deducted and that clients might get confused and misread that any type of income is exempt: however, an inheritance is not exempt. The ministry explained !hat at the tirne of the reconsideration the appellant told them that she had exhausted the funds and she requested '·benefits on appeal" to pI·event her from being evicted for non-payment of rent The ministry requested the appellant's bank statements which showed that the funds were not in her account as an asset, and that her account balance was almost nil. EAAT 003( 10/06/01;
PART F Reasons for Panel Decision The issue in this appeal is whetl1er-1l1e ministry reasonably determined that the appellant was not eligible for disability assistance for the month of Septembe1· 2013 because in July 2013 she received an inheritance in excess of the monthly disability assistance she was eligible for, in accordance with section 9(2) of the El,PV✓DR. The relevant sections of the EAP\VDR a.e as follows: Definitions 1 (l)In this regulation: "unearned income" means any income that is not 2arned income, and includes, without !imitation, money or value received from any of the fcllowini;: (I) a trust or inheritanc~; Limits on income 9 (2) A family unit is not eligible for disabiiity assistance if the net income of the family unit determined under Schedule B equals or exceeds the amount of disability assistance determined under Schedule A for a family unit matching that family unit. Amount of disability assistance 24 Disability assistance rnav be provided to or for J family unit, for a calendar month, in an amount that is not more than (a) the amount determined under Schedule A, minus (b) the family unit's net income determinecl under Schedule B. SCHEDULE A Disability Assistance Rates (section 24 (a)) Maximum amount of disabt!ity assistance before deduction of net income 1 (1) Subject to this section and sections 3 ;rnd 6 to 9 cf this Schedule, the amou;it of disability assistance referred to in section 24 (a) [amount of disabi/itv ass,stance] ~f this regul~tion is the sum of (B.C. Reg. 197/2012) (a) the monthly support allowance under secticn 2 of this Schedule for a family unit matching the family unit of the applicant or recipient, piu:; (b) the shelter a!!owar,ce calcu!ated und'2r secti'.Jrts 4 or,d 5 c,f this Schedule. 2 (1) A monthly supp,xt aiiowance for the pu,·pc,se o' section l (a) is the! sum of (a) the amm1nt set out in Co'.urnn 3 cf the foli:~wing table for a familv unit describ2d in Column 1 of an applicant or a recipient cle~.cri!Jed in Column 2, plus EAAT 003(I0/06101)
~~-----------------""·-·--·--·----·--·-----·--·-·------------(b) the amount ca!culated in a~c0rciance w,th subsections (2) to (4) for each dependent child in the family unit. Column l Column 2 Column 3 Family unit cornposition Ai~e or status of applkant or recipient I Amount of I support 1 Sole applicant/rec:pi2nt and no J\pp!Jcant/recipient is a person with $531.42 dE:pendent chi!dren disabilities Monthly Shelter Allowance 4(1) For the purposes of this section (2) The monthly shelter allowance for a family unit to v1hich section 14.2 of the Act does not apply is the smaller of (a) the family unit's actual she!ter costs, and (b) the maximum set out in the following tab!e for the app;icab!e family size: Itern Column 1 Column 2 Family Unit Size Maximum Monthly Shelter 1 1 person $375 Schedule B Net Income Calculation 1 When calculating the n-2t inrnrne of a family unit for the purpose of section 24(tJ) [amount of disability assistance] of this regulation, (a) the following are exempt from income: (i) any income earn::d by a dependent chPd 3tt211ding school on a full-time basis; (ii) the basic family ca,-e rate paid for foster horr,es; (iii) Repealed (B.C. Reg. 48/2010, Sch.1) (iv) a family bonus, excent the pc;tion treated as unearned income under section 10 (1) of this Schedule; (v) the basic child tax benefit; (vi) a goods ::1nd services tax credit under the Income Tax Act (Canada); (vii) a tax credit under section 8 [;-efundabie sales tax credit], 8.1 [low income climate action tax credit] or 8.2 [BC harmonized sales tax credit] of the Jncorne Tax Act (British Columbia); (viii) individual redress payments granted by the 9overnrnent of Canada to a person of Japanese ancestry; (ix) individual payments grantee! tc.y the gavernrnent of Canada under the Extraordinary Assistance Plan to a person infected by the human immunodeficiency virus; -··------------~------------------------·----------------------------------J EMT003(10/06/01)
------~,---·--· ------------------------~ (x) individual payments granted !:,y the guvernrnent of British Columbia to a person infected by the human immunodeficiency virus or to the: survi'iin:] ::;pouse or clependent chi!d1Tn of that perscn; (xi) individual payments granted by U1e governme1t of Canada under the E>:traordinary Assistance Plan to thalidomide victims; (xii) money that is A. paid or payab:e to a person if the money is awarc!ed to the person by an adjudicative panel in respect of claims of abuse at Jericho Hill Schoo! for the Deaf and drawn from a lump sun settlement paid by the government of British Columbia, or B. paid or payable to er for a person if the payment is in accord::rnce vvith the settlement agreement approved by the Supreme Court in Action No. C98C463, Vancouver Reg:stry; (xiii) the BC earned income benefit; (xiv) money paid or payable under the 1986-1990 Hepatitis C Settlement Agreement made June 15, 1999, except money paid or payable ur,der section 4.02 or 6.01 of Schedule t, or of Schedule B of that agreement; (xv) a rent subsidy provided by the provincial tJovcrnment, or by a ccuncil 1 board, society or governmental agency that administers rent subsidies fron1 the provincial government; (xvi) Repealed (B.C. ·~eg. 197/2012) (xvii) money paid or payab!e to a pe~son in sett!ement of a claim of :it.use at an Indian residential school, except money paid or payable as income replacement in the settlement; (xviii) post adoption assic;tance payments provided ucder section 28 (1) or 30.1 of the Adoption Regulation, B.C. Reg. 291/96; (xix) a rebate c,f ene,·gy or fuel ta>: provided by the, government of Canada, the government of British Columbia, or an agency of either govemnient, (xx) money paid by the Government of British Coiumbia, under a written agreement, to a person with disabilities or to a trustee for the benefit of a pers::,n 'Nith disabilities to enable the person with disabilities to live in the community instead of in an instit1Jtion; (xxi) Repealed (S.C. Reg. 85/2012, Sh 2) (xxii) payments granted c,y the government of British Columbia under sect:011 8 of the Child, Family and Community Service Act [aQreement ~vitli chi!c(s ki.n and othen:]; (xxiii) payments granted b't the qovernment cf British Colurnb:2 under the Ministry of Chi!dren and Family Development's At Hon-1e Prngrarn. (xxiv) Repealed E,nbsp (B.C. Reg. 35/2012, Sch.2) (xxv) payments granted by the Gcvernment of British Columbia under an agreement referred to in section 93 (1) (g) (ii) of the Child, Famil/ and Commanity Service Act, for contributions to tt1E-support of a chHd; -·----~ ·----------------------------------EAAT 003( 10 /06/01)
(xxvi) a loan that is (A) not greater that the amcur,t contemplated lJy the recipient's bus:ness ~Ian, accepted by the minister under section 70.1 of this regulation, and (B) received and used for the purposes set out in the business pian. (xxvii) payments granted bv the government of British Columbia under the Hinistry oF Children and Family Development's (A) Autism Funding: Under 1\ge 6 Program, or (B) Autism Funding: 1\qes 6 -18 Program; (xxviii) that portion of the maintenance paid for and passed on to a person with disabilities or a person aged 19 or older under a mainte.1crnce order or agreement filed with a court; 11 (xxix) payments made by a t1ea'.th authority or a contractor of 2 health authority to a recipient, who is a person with a mental disorder" as defined in section 1 of the Mental Heaith Act, for the ~urpose of supporting the recipient in participating in a volunteer program or In a mental heattt1 or addictions rehabilitation program; (xxx) a refund provided under Plan I, 'Fai1· PharmaCare", of the ?harmaCare program established under the Continuing Care Progr·ams Regulation, B.C. Reg. 146/95; (xxxi) payments provided by Community Uving BC to a:,sist w;th travel expenses for a recipient in the family unit to attend a self.-help skiils prcgrarn, or a supported work placement program, approv,2d by Community Living BC; (xxxii) a Universal Cl;!ld Care Benefit provided under the Universal Child Care Benefit Act (Canada); (xxxiii) money paid by the government of Canada, under a settlement agreement, to persons-who contracted Hepatitis C by receiving blood or b!ood products in Canada prior to 1986 or after July 1, 1990, except money paid under that agreement as incorne replacement; (xxxiv) money 1.vithdra·iN11 from a registered disabl:ity savings plan; (xxxv) a working income tax benefit provided under the Incor;-ie Tax Act (Canada); (xxxvi) Repealed (B.C. Reg. 180/2010) (xxxvii) the clin1ate action ctividend under section 13.02 of the Income Tax Act; (xxxviii) money paid or payable to a person under the Criminal lnjury Compensation Act as compensation for non-pecuniary loss or damage for pain, suffering mental or emotional trauma, humiliation or inconvenience that occurred when the person \\'as under 19 years of age; (xxxix) money that ,s paid or payable to or for a p2rson if the paymer,t is in accordarce with the settlement agreement approved by the Suprerne Cot:rt in Acti,Jn No. 5024338{ Vanccuver Registry; (xi) payments granted by the ~:ov2rnrnent of British Columbia ur,der the Ministry of Children and Famfly Development's Famii'/ Support Services p;-ogr3ir:; ·----·~---------EAAT 003( 10/06/01)
I L (xii) payments granted by trie governmei~t cf British Cvlumbia under the Ministry of Children and Family Development's Supported Child De·✓c:!oprnent progrcm; (xiii) payments granted by U1e government of British Columbia under the Ministry of Children and Family Development's r'\borigina! Support::::d Chi1d Development proqram; (b) any amount qarnished attached, seized, deducted or set off fror:1 income is considered to be income, except the 1 deductions permitted unc!er sections 2 :':md 6, (c) all earned income must be included, except the deductions permitted under section 2 and any earned income exempted under sections 3, 3.1 ancl Li-, ar,d (d) all unearned income must be inc!ucl,::d, except the deddctions permitted under section 6 and any income exempted under sections 7, 7.1, 7.2 and 8. [am. B.C. Regs. 276/2004; 292/2005; 195/2007; •fS/2008; 87/2008; 94/2008; 4/2010; 48/2010, Sch. 1; 180/2010; 242/2010; 32/2012, Sch. 4; 85/;'012, Sch. 2; 197/2012, Sch. 2; 332/2012; 123/2013.] Deductions froin Unearned 1ncmne 6. The only deductions permitted from unearned income ar2 the fol!owing: (a) any income tax deducted at source from e:1,ployrncnt insurance ber:efits; (b) essential operating costs of renting self-contained suites. Exemptions unearned income 7(1) The following unearned income iS exempt: (d) a payment made frnrn a t1ust to or on behalf of a person referred to in section 12(1) of this regulation [assets held in trust for person with disabilities} (i) disability-related costs, (ii) the acquisition of a famHy unit's place of residence, (iii) a registerecl educ21ti(;:1 saving·; plan, or (iv) a registered disability savin9s p!an; Exemptions v,arkers compensation 7.1 (1) Subject to subsection (2), unearned income that is compensation paid under section 29 or 30 of the Workers Compensation Act is 1:xernpt for a family unit. Minister's discretion to exempt education related unearned income 8. (2) The minister may authorize an exemption for a student up to tile sum of the student's education costs and day care costs from the-totai amount of EAA T003( 10/06101 )
~----------------·-·----------·· ·----·----·-·-·-·--····-·-------------(a) a trainin9 allowance, (b) student financial assistance, and (c) student grants, bursa!-ies, schoiarships or disbursements frcrn a registered education savings plan received for the semester. The position of the ministry, as set out in the reconsideration decision, is that the appellant is ineligible for September 2013 clisabi!ity assistance because she received income in excess of the legislated limit On her August rnonU1iy declaration form ("stub") the appel!ant declared $1,306.37 as the final distributive share of an estate. The ministry confirmed with the law firm that issued the payment that tl1e appeliant received these funds and did not receive any other payments, and that these funds were not a trust account set up for the appeilant. The ministry's position at the hearing was that because the appe!lant had spent the funds (as indicated by her bank balance of $1.62 and the Notice to End Tenancy for non-payment of rent) the inheritance could not be classified as an asset under the legislation, and had to be viewed as income. The ministry states that the appeilant was receiving disability assistance as a sole recipient, with a monthly rate of $906.42 under Schedule A of EAPWDR: the appellant receives $531.42 for support plus $375 for shelter. The ministry further states that section 24 requires the appellant's net income to be deducted from her assistance rate. Schedule B(1) of tl1e EA.PWDR states that net income includes all earned income and unearned income, minus al! applicable deductions and exemptions, and income received from an inheritance is classified as unearned income pursuant to section 1. The ministry states that there are no applicable exemptions from •nheritance income and the appellant's entire inheritance must therefore be included in the calculation of her net income. Also, as income is calculated at the earliest opportunity, the inheritance that was received in July and reported on the August stub, affects assistance for September, the month in which the appellant was found ineligible because her net income of $1,306.37 exceeds the disability rate of $906.42. The appellant's position is that she "'s beyond fiqhting temporary a9encies and threats of disease", and she suffers from nervout, tensicn and rotten teeth and had requested a federal lawyer. She states that she needs a place to live and can make monthly icayments to pay the rent for September. She "made a mistake of the rent cheque but cannot re 1 1erne it", and her account is overdrawn. The panel finds that the ministrv considered the rnonth:y disability assistance the appellant is eligible for and the amount of inheritance the appePant received in July 2013. The ministry reasonably determined that the inheritance is unearned income per section 1 of the EAPVVDR where an inheritance is clearly defined as such. As well, tile appellant's bank statements indicated that the money was not in her account as an asset. Tile panel finds that the ministry's interpretation of sections 9 and 24 were reasonabie as these sections state that a family is not eligible for assistance when their net income calcu,ation per Schedule A of the refJUiation exceeds the disability rate for their family size, and nd income must be deducted from the disability amount. The panel further finds that the ministry reasonably determined rhat the deductions and exemptions described in Schedu:e B of the EAP'J\'DF: do not appiy to the app9llant's inheritance income. The exemptions allowed under section ·1 of Sc1l,3dule B include government benefits and payments from legal settlements. Tile, allovva'}le dedu::tions under section 6 of the Schedule relate to Employment Insurance and rental suites, w_hi!e_:,;,ctions 7, .Z-.1, and a have to do with trusts, Workers EAA T003( 10/0G/O 1:
~-------------·------------Compensation, and education aliowances. The lnher:tance th21t the appellant received is not any of these. Accordingly, the panel finds limt ba~:ed on the es,idence thE) mini3trJ reasonably determined that the appellant's unearned income of $1,3013.37 in .July 3013, consisting of a final distributive share of an estate, was more than the $906.42 a month she vms e!igible for in disability assistance. Therefore, the appellant was not eligib 1 e for disability assistance for September 2013. The panel confirms the ministry's reconsideration dec.ision because ii finds that the decision was reasonably supported by the evidence and was a reasonable application of the apolicab!e legisiiltion in the appellant's circumstances. --------------------------------------------------------------------~ EAAT 003(10/06/01)
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.