Ministry of Social Development and Poverty Reduction

Decision Information

Decision Content

P A RT C-Dec isio n unde r Appeal The decision under appeal is the Ministry of Socia l ministry) reco nsideration decision dated De cember Plan Child of Disabl ed Cont r ib u tor benefits (CPP Childrens received in October 2013 is not ex emp t income p u rs Assistance Regul ation (EA R) and w as d educted from h PART D -Relevant Legislation Empl o y ment an d Ass istance R e g u l a t i on (EA R ), sec APPEAL # I Devel op ment and S ocial Innovation's (the 1 0, 201 3 which fou nd t ha t the Canada Pe nsi on Benefits) of $91 4.64 that the appellant u ant t o Schedule B of the Employm e nt and er De cember inc ome assistance. t ion 1, 28 and Sc h edule B
APPEAL# I PART E -Summary of Facts The evidence before the ministry at the time of reconsideration consisted of: 1) The appellant's Request f o r Reconsideration dated November 25, 2013 (RFR) which states that she was told in April 2013 that the CPP Childrens Benefits she was receiving from her ex-husband's disability was exempt. The appellant states that in October she received a retro payment of $685 plus her monthly amount of $228.66 f o r her dependant. In November, she received a call from the ministry representative advising her that the CPP Childrens Benefits was not exempt but advised that it was just the three months, about $900 and that she could pay $20 per month so that it would not be deducted all at once. The appellant states that she received her income assistance in December of $138.94 and she was shocked. The appellant states that she has no money left prior to being told it was no longer exempt and the deduction will cause undue financial hardship as she does not have shelter or f o od money. The appellant states that she understood that the monthly amount of $228.66 would be deducted from now on; 2) Account Statement of the appellant's bank account dated October 30, 2013 listing transactions from September 28, 2013 through October 30, 2013. The Account Statement indicates that the appellant received CPP Childrens Benefits of $228.66 and $685.98 in October 2013; 3) Statement from CPP dated March 22, 2013 indicating that the appellant's application for CPP has been approved; In her Notice of Appeal the appellant states that the ministry did not tell her that the CPP Childrens Benefits was not exempt until after she received the retroactive payment. She was also told that she would not have to pay it back all at once and that it would be deducted at $20 per month. Prior to the hearing the appellant provided a written submission dated January 2, 2014 (the Submission) stating that when she started receiving CPP Childrens Benefits she was told by a ministry representative that the CPP Childrens Benefits was coming from her ex-husband's CPP and she would clarify whether it was exempt or not. The appellant states that the ministry representative advised her that the CPP Childrens Benefits would be treated like the Child Tax Benefit and would be exempt but when she received the retroactive payment six months later, she was then told by a different ministry representative that the CPP Childrens Benefits were not exempt. The appellant also states that she was told by the second ministry representative that because the information provided to her was incorrect and a ministry error she would only have to pay back $20 per month. The appellant states that she is asking for reconsideration because it was the ministry's mistake. In addition, the appellant states that she is in an unforeseen situation and living well below the poverty line trying to support her daughter so it is so it is unreasonable to deduct the CPP Childrens Benefits all at once. As the Submission did not contain any new evidence it was accepted as a written submission detailing the appellant's position. The ministry relied on the reconsideration decision and submitted no new information. The ministry's reconsideration decision states that the appellant has been in receipt of income assistance since March 2011 and her dependant was added to her file in March 2013. The appellant receives assistance as a Person With Persistent Multiple Barriers /PPMB) so her monthlv assistance before
deductions is $99 3.58 base d on $5 7 0 for shelter and $423.5 receiv es f a m ily bonus a nd as o f M arch 2013 was approv per mon th . The reconsid er ation decision s t ates that th Children s Bene fits in October which were fully deducted from APPEAL# I 8 for suppo rt. The ap pellant also ed for th e CPP Childrens Be n e fits o f $22 8.6 6 e appellant reported receivin g $914.64 CPP her Decembe r assistance.
I APPEAL# PART F -Reasons for Panel Decision The issue under appeal is whether the ministry's reconsideration decision which found that the CPP Childrens Benefits of $914.64 that the appellant received in October 2013 must be deducted from her December 2013 income assistance as ii is not exempt income pursuant to Schedule B of the Employment and Assistance Regulation (EAR) was reasonably supported by the evidence or was a reasonable application of the legislation in the appellant's circumstances. The relevant sections of the legislation are as follows: EAR Definitions 1 (1) In this regulation: "Act" means the Employment and Assistance Act, "assistance" means income assistance, hardship assistance or a supplement; "unearned income" means any income that is not earned income, and includes, without limitation, money or value received from any of the following: (f) any type or class of Canada Pension Plan benefits; (p) maintenance under a court order, a separation agreement or other agreement; Amount of income assistance 28 Income assistance may be provided to or for a 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 determined under Schedule B. EAR Schedule B Deduction and exemption rules 1 When calculating the net income of a family unit for the purposes of section 28 (b) [amount of income assistance] of this regulation, a)the following are exempt from income: (iv) a family bonus, except the portion treated as unearned income under section 10(1) of this Schedule; (v) the basic child tax benefits; (vi) a goods and services tax credit under the Income Tax Act (Canada) Exemptions -unearned income 7 (0.1) In this section: "disability-related cost" means a disability-related cost referred to in paragraph (a), (b) or (c) of the definition of disability-related cost in section 13 (1) [assets held in trust for oerson receivinq special care] of this reaulation;
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P o s i t i o n o f t h e P a r t i e s T h e m i n i s t r y ' s p o s i t i o n , a s s e t o u t i n t h e r e c o n s i d e r a B e n e f i t s , i n c l u d i n g t h e e x t r a b a c k d a t e d a m o u n t r e c e a p p e l l a n t ' s i n c o m e a s s i s t a n c e . T h e m i n i s t r y s t a t e s t h a t i n c o m e a s s i s t a n c e m a y b e m o r e t h a n t h e a m o u n t d e t e r m i n e d u n d e r S c h e d u l e u n d e r S c h e d u l e B . T h e m i n i s t r y s t a t e s t h a t t h e a p p d e t e r m i n e d b y S c h e d u l e w a s $ 9 1 4 . 8 4 . T h e m i n i s t r y a n d c h i l d t a x b e n e f i t a r e e x e m p t a n d d i d n o t a f f e c t h i n c l u d e s a n y t y p e o r c l a s s o f C P P b e n e f i t s w i t h t h e E A R S c h e d u l e B , s e c t i o n 7 ( 1 ) ( e ) o r b a c k d a t e d C P P o t h e r w i s e n o t b e e n p r o v i d e d a s p e r E A R S c h e d u l e T h e m i n i s t ry s t a t e s t h a t t h e r e w a s n o i n f o r m a t i o n p r t h e a p p e l l a n t ' s C P P C h i l d r e n s B e n e f i t s a n d a s t h e b w h e r e s h e w a s i n r e c e i p t o f f u l l a s s i s t a n c e , s h e d o e e x e m p t i o n s . T h e m i n i s t r y a l s o s t a t e s t h a t C P P C h i l w i t h i n t h e l e g i s l a t i o n a s i t i s a l s o d e f i n e d a s " u n e a r n T h e m i n i s t r y ' s r e c o n s i d e r a t i o n d e c i s i o n a l s o s t a t e s t S c h e d u l e B a p p l y o n l y i n t h e c a l e n d a r m o n t h i n w h i c d a t e t h e i n c o m e i s p a y a b l e o r p e r i o d f o r w h i c h t h e i n c y c l e , i n c o m e i s r e p o r t e d b y t h e 5 t h o f t h e f o l l o w i n g m s u c h a s O c t o b e r i n c o m e i s r e p o r t e d i n N o v e m b e r a n T h e a p p e l l a n t ' s p o s i t i o n i s t h a t t h e m i n i s t r y ' s r e c o n s C h i l d r e n s B e n e f i t s a r e c h i l d b e n e f i t s i t i s u n r e a s o n a t h e c i r c u m s t a n c e s w e r e u n f o r e s e e n a n d a s s h e i s l i v c a u s e d h e r u n d u e h a r d s h i p . T h e a p p e l l a n t a l s o s t a t h a t t h e C P P C h i l d r e n s B e n e f i t s w o u l d n o t b e d e d u c t o l d h e r t h a t o n l y t h r e e m o n t h s o f r e t r o a c t i v e b e n e f i t a p p e l l a n t s t a t e s t h a t a s t h e m i n i s t r y m a d e a m i s t a k e d e d u c t e d . P a n e l D e c i s i o n A s l e g i s l a t e d i n E A R s e c t i o n 2 8 , t h e a p p e l l a n t ' s i n c o o u t i n S c h e d u l e A m i n u s t h e f a m i l y u n i t ' s n e t i n c o m e s e c t i o n 7 ( 1 ) ( e ) s t a t e s t h a t a t a x p o r t i o n o f C P P b e n e e x e m p t . A s t h e r e w a s n o i n f o r m a t i o n p r o v i d e d t o i n d a p p e l l a n t ' s C P P C h i l d r e n s B e n e f i t s t h e p a n e l f i n d s t S c h e d u l e B , s e c t i o n 7 ( 1 ) ( e ) d i d n o t a p p l y . S c h e d u l e B , s e c t i o n 1 1 s t a t e s t h a t b a c k d a t e d C P P i s I A P P E A L # -_ ------� t i o n d e c i s i o n , i s t h a t t h e m o n t h l y C P P C h i l d r e n s i v e d i n O c t o b e r , m u s t b e d e d u c t e d f r o m t h e p r o v i d e d t o o r f o r a f a m i l y u n i t i n a n a m o u n t n o t A , m i n u s t h e f a m i l y u n i t ' s n e t i n c o m e d e t e r m i n e d e l l a n t ' s n e t i n c o m e i n O c t o b e r 2 0 1 3 a s s t a t e s t h a t t h e a p p e l l a n t ' s G S T , f a m i l y b o n u s e r a s s i s t a n c e , b u t t h a t " u n e a r n e d i n c o m e " e x c e p t i o n o f t h e t a x p o r t i o n o f C P P c h e q u e a s p e r r e c e i v e d f o r a p e r i o d t h a t a s s i s t a n c e w o u l d h a v e B , s e c t i o n 1 1 . o v i d e d t o i n d i c a t e t h a t t h e r e w a s a t a x p o r t i o n o f a c k d a t e d a m o u n t s h e r e c e i v e d i s f o r a p e r i o d s n o t q u a l i f y f o r e i t h e r o f t h e l e g i s l a t e d d r e n s b e n e f i t s a r e t r e a t e d m u c h l i k e m a i n t e n a n c e e d " i n c o m e a n d f u l l y d e d u c t e d f r o m a s s i s t a n c e . h a t t h e d e d u c t i o n s a n d e x e m p t i o n s i n E A R h t h e i n c o m e i s a c t u a l l y r e c e i v e d , d e s p i t e t h e c o m e i s p a y a b l e . A s p e r t h e m i n i s t r y ' s r e p o r t i n g o n t h a n d a f f e c t s t h e n e x t m o n t h ' s a s s i s t a n c e d a f f e c t s t h e D e c e m b e r m o n t h ' s a s s i s t a n c e . i d e r a t i o n d e c i s i o n i s u n f a i r a n d t h a t a s t h e C P P b l e t o d e d u c t t h e m a l l a t o n c e . S h e s t a t e s t h a t i n g w e l l b e l o w t h e p o v e r t y l i n e , t h e d e d u c t i o n s t e s t h a t t h e m i n i s t r y r e p r e s e n t a t i v e i n i t i a l l y t o l d h e r t e d a n d t h e n a n o t h e r m i n i s t ry r e p r e s e n t a t i v e l a t e r s w o u l d b e d e d u c t i b l e a t $ 2 0 p e r m o n t h . T h e i n w h a t t h e y t o l d h e r t h e b e n e f i t s s h o u l d n o t b e m e a s s i s t a n c e i s d e t e r m i n e d b y t h e a m o u n t s e t d e t e r m i n e d u n d e r S c h e d u l e B . S c h e d u l e B f i t s a r e c o n s i d e r e d u n e a r n e d i n c o m e a n d i c a t e t h a t t h e r e w a s a t a x p o r t i o n o f t h e h a t t h e m i n i s t ry r e a s o n a b l y c o n c l u d e d t h a t t r e a t e d a s " u n e a r n e d i n c o m e " a n d i s e x e m p t
f r o m i n c o m e o n l y i f i t i s r e c e i v e d f o r a p e r i o d t h a t a s p r o v i d e d . T h e p a n e l f i n d s t h a t t h e m i n i s t r y r e a s o n a C h i l d r e n s B e n e f i t s w e r e r e c e i v e d f o r a p e r i o d w h i l e e x e m p t i n c o m e a n d t h e r e f o r e , m u s t b e d e d u c t e d . A l t h o u g h t h e a p p e l l a n t s t a t e s t h a t s h e i n i t i a l l y a d v i s C h i l d r e n s B e n e f i t s w e r e e x e m p t f r o m i n c o m e l i k e t h d i f f e r e n t i a t e s b e t w e e n t h e c h i l d t a x b e n e f i t a n d C P P i n f o r m a t i o n t o i n d i c a t e t h a t t h e m i n i s t r y p r o v i d e d i n c d e d u c t i b i l i t y o f t h e C P P C h i l d r e n s B e n e f i t s , b u t e v e n i n f o r m a t i o n , t h e l e g i s l a t i o n r e q u i r e s t h a t t h e C P P C h T h e p a n e l a p p r e c i a t e s t h a t t h e d e d u c t i o n o f t h e f u l l D e c e m b e r 2 0 1 3 m a y h a v e b e e n d i ff i c u l t f o r t h e a p p r e a s o n a b l y d e d u c t e d t h e a m o u n t t h a t m o n t h b a s e d T h e C P P p r o v i d e d t o t h e a p p e l l a n t i n O c t o b e r i s n o t a n d S c h e d u l e B . A c c o r d i n g l y , t h e p a n e l f i n d s t h e m a p p e l l a n t i n O c t o b e r 2 0 1 3 m u s t b e d e d u c t e d f r o m h r e a s o n a b l e a p p l i c a t i o n o f t h e l e g i s l a t i o n . T h e p a n e l d e c i s i o n .A P P E A L # I s i s t a n c e w o u l d h a v e o t h e rw i s e n o t b e e n b l y d e t e r m i n e d t h a t a s t h e b a c k d a t e d C P P s h e w a s i n r e c e i p t o f f u l l a s s i s t a n c e , i t i s n o t e d b y t h e m i n i s t r y r e p r e s e n t a t i v e t h a t t h e C P P e c h i l d t a x b e n e f i t , t h e l e g i s l a t i o n c l e a r l y C h i l d r e n s B e n e f i t s . T h e r e i s n o o t h e r o r r e c t i n f o r m a t i o n t o t h e a p p e l l a n t a b o u t t h e i f t h e m i n i s t r y h a d p r o v i d e d i n c o r r e c t i l d r e n s B e n e f i t s b e d e d u c t e d . C P P C h i l d r e n s B e n e f i t s i n t h e m o n t h o f e l l a n t , b u t t h e p a n e l f i n d s t h a t t h e m i n i s t r y o n t h e r e p o r t i n g c y c l e . e x e m p t i n c o m e p u r s u a n t t o E A R s e c t i o n 1 , 2 8 i n i s t r y d e c i s i o n t h a t t h e C P P p r o v i d e d t o t h e e r D e c e m b e r 2 0 1 3 i n c o m e a s s i s t a n c e w a s a t h e r e f o r e c o n f i r m s t h e m i n i s t r y ' s r e c o n s i d e r a t i o n
 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.