Ministry of Social Development and Poverty Reduction

APPEAL NUMBER 2021-00056

PART C – DECISION UNDER APPEAL

The decision under appeal is the Ministry of Social Development and Poverty Reduction (ministry) reconsideration decision dated March 3, 2021, which determined that the Canada Pension Plan (CPP) disability payment of $904.25 received in December 2020, must be deducted from February assistance as per sections 1 and 24 and schedules A and B of the Employment and Assistance for Persons with Disabilities Regulation.

On reconsideration, the ministry determined that the spouse’s student financial assistance should not be included in the net income calculation for December 2020 (affecting February’s assistance) and therefore this issue is not included as part of this appeal.

PART D – RELEVANT LEGISLATION Employment and Assistance for Persons with Disabilities Regulation (EAPWDR), sections 1 and 24 Schedule A, sections 1, 2 and 4 and Schedule B, sections 1, 6, and 7

APPEAL NUMBER 2021-00056

PART E – SUMMARY OF FACTS

Relevant Evidence Before the Minister at Reconsideration Ministry records show:  The appellant has Persons with Disabilities designation. He and his spouse (as a two-person family unit) receive disability assistance of $1949.56/month ($1027.56 support allowance, $570.00 shelter allowance, $300.00 emergency disaster supplement and $52.00 transportation supplement).  Prior to January 1, 2021 the appellant received $904.25 per month for CPP disability, which was deducted from his disability assistance.

Reason for Request for Reconsideration (February 19, 2021) With the Request for Reconsideration the appellant submitted internet and non-prescription drug costs. As well, the appellant stated that his spouse needs a computer soon. Without a computer she will not be successful in school as all of her courses are online. His spouse needs to be successful in school so she can stop working as a massage therapist (which is now too painful) and become a teacher. Once she is a teacher she will be able to earn enough money to support the appellant.

Additional Information Appellant Notice of Appeal (March 9, 2021) The appellant stated that when first denied, the ministry said it was because of his spouse’s student grant and the reconsideration request was based on that. Later the ministry stated this is no longer an issue. Now the ministry is saying it is the appellant’s CPP disability that it wants to take away. However, the appellant has been reporting this from day one. The appellant doesn’t understand why, suddenly, the ministry is withholding it and does not understand the breakdown of numbers.

At the hearing the appellant clarified that CPP disability has always been taken off his assistance and the only discrepancy was that there was a small increase in the amount. The appellant does not have an issue with the CPP deduction, nor with the small increase. His issue was with the deduction for the student financial assistance. He also added that on April 16, 2021 the ministry rectified the mistake regarding the student financial assistance and rescinded the amount to be deducted from February’s assistance. The appellant was advised to continue with the appeal to ensure everything was in order.

Ministry At the hearing, the ministry confirmed that the information regarding the student financial assistance was amended and the cheque for February’s assistance was adjusted. The ministry verbally provided this information to the appellant on April 19, 2021.

The panel determined that the additional information is reasonably required for a full and fair disclosure of all matters related to the decision under appeal and therefore is admissible under section 22(4) of the Employment and Assistance Act.

APPEAL NUMBER 2021-00056

PART F – REASONS FOR PANEL DECISION

The issue on appeal is whether the ministry’s reconsideration decision, which determined the CPP payment of $904.25 received in December, 2020 must be deducted from February assistance as per sections 1 and 24 and schedules A and B of the EAPWDR, was reasonably supported by the evidence or was a reasonable application of the legislation in the circumstances of the appellant.

On reconsideration, the ministry determined that the spouse’s student financial assistance should not be included in the net income calculation for December (affecting February’s assistance) and therefore this issue is not included as part of this appeal.

Relevant sections of the legislation can be found in the Schedule of Legislation. Appellant Argument The appellant’s argument was that the student financial assistance should not have been included in the deduction from his February disability benefits. This deduction has since been reversed, by the ministry, prior to the hearing. The appellant does not argue the deduction of his CPP disability benefits and has no issue with the recent small increase.

Ministry Argument The electronic data match, the ministry shares with Service Canada, confirmed the appellant received $904.25 in CPP disability benefits in December 2020. The ministry’s position is that this is unearned income under section 1 of the EAPWDR and is not exempt because it is not for an orphan’s benefit or a disabled contributor's child's benefit paid or payable under the Canada Pension Plan Act.

Therefore, the ministry argues, in accordance with section 24 and 29 of the EAPWD Regulation the $904.25 CPP received in December 2020 must be deducted from the appellant’s disability assistance for February 2021.

Analysis Section 1, EAPWDR – definitions Section 1 defines unearned income as any income that is not earned and includes “any type or class of Canada Pension Plan benefits”. The panel notes the ministry received information from Service Canada through an electronic data match, which confirms the appellant received $904.25 for CPP disability in December 2020.

Section 24, EAPWDR - amount of disability assistance Section 24 provides a formula that states, the amount of disability assistance for a calendar month, is not more than: (a) the amount determined under schedule A, minus (b) the family unit's net income determined under schedule B.

APPEAL NUMBER 2021-00056

Schedule A, section 1, EAPWDR - maximum amount of disability assistance before deduction of net income Section 1 defines the maximum amount of assistance as “the sum of…the monthly support allowance under section 2 of this Schedule for a family unit matching the family unit of the…recipient, plus...the shelter allowance calculated under sections 4 and 5 of this Schedule….”

Schedule A, section 2, EAPWDR - monthly support allowance Section 2 shows the monthly support allowance for two recipients and no dependent children where one recipient is a person with disabilities and the other is not a person with disabilities (and is under 65 years of age) as $1027.56. Ministry records show the appellant has Persons with Disabilities designation and he and his spouse receive disability assistance as a two-person family unit.

Schedule A, section 4, EAPWDR – shelter allowance Section 4 shows the monthly shelter allowance for two persons as $570.00.

Therefore, the monthly amount under schedule A is $1027.56 and $570.00 under schedule B. $1027.56 + $570.00=$1597.56

As well, ministry records show the family unit receives $300/monthly emergency disaster supplement and $52/monthly transportation supplement.

$1597.56 + $300.00 + $52.00 = $1949.56. Schedule B, section 1, EAPWDR - deduction and exemption rules The panel notes, under this section, only CPP benefits that apply to orphan’s benefits and a disabled contributor’s child's benefit, are listed as exemptions.

Schedule B, section 6, EAPWDR – deductions from unearned income The panel notes the only deductions permitted from unearned income are, “any income tax deducted at source from employment insurance benefits” and “essential operating costs of renting self-contained suites.”.

Schedule B, section 7, EAPWDR – exemptions, unearned income The panel notes, the only CPP benefits listed under this section are those relating to the Canadian Income Tax Act.

As there are no deductions or exemptions that apply in the appellant’s case, the unearned income (CPP disability benefits) is calculated at $904.25.

Therefore, the panel finds the ministry reasonably determined that the $904.25, in CPP disability benefits, should be deducted from the family unit monthly assistance.

As stated by the ministry, the deduction of the student financial assistance for February assistance has been reversed. The panel notes this is a separate matter from this appeal.

APPEAL NUMBER 2021-00056

Conclusion In conclusion, the panel finds the information in the ministry’s reconsideration decision, which determined that the monthly CPP payment of $$904.25 must be deducted from February assistance benefits as per sections 1, 24 and schedules A and B of the EAPWDR, was a reasonable application of the legislation in the circumstances of the appellant.

The appellant is not successful on appeal.

APPEAL NUMBER 2021-00056

Schedule of Legislation Employment and Assistance for Persons with Disabilities Regulation Definitions 1 (1) In this regulation: "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

Amount of disability assistance 24 Disability 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.

Schedule A Maximum amount of disability assistance before deduction of net income 1 (1) Subject to this section and sections 3 and 6 to 9 of this Schedule, the amount of disability assistance referred to in section 24 (a) [amount of disability assistance] of this regulation is the sum of (a)the monthly support allowance under section 2 of this Schedule for a family unit matching the family unit of the applicant or recipient, plus (b)the shelter allowance calculated under sections 4 and 5 of this Schedule.

Monthly support allowance 2 (0.1) For the purposes of this section: …

"warrant" has the meaning of warrant in section 14.2 [consequences in relation to outstanding arrest warrants] of the Act.

(1) A monthly support allowance for the purpose of section 1 (a) is the sum of (a) the amount set out in Column 3 of the following table for a family unit described in Column 1 of an applicant or a recipient described in Column 2, plus (a.1)Repealed. [B.C. Reg. 193/2017, s. 9 (a).]

APPEAL NUMBER 2021-00056

(b) the amount calculated in accordance with subsections (2) to (4) for each dependent child in the family unit. Item Column 1 Column 2 Column 3 Family unit Age or status of Amount composition applicant or recipient ($) 3 Two applicants / One applicant / recipient is a 1027.56 recipients and no person with disabilities, the dependent children other is not a person with disabilities and is under 65 years of age

Monthly shelter allowance 4 (1) For the purposes of this section: …

"warrant" has the meaning of warrant in section 14.2 [consequences in relation to outstanding arrest warrants] of the Act.

(2) The monthly shelter allowance for a family unit to which section 14.2 of the Act does not apply is the smaller of (a)the family unit's actual shelter costs, and (b)the maximum set out in the following table for the applicable family size: Item Column 1 Column 2 Family Unit Size Maximum Monthly Shelter 2 2 persons $570 Schedule B Deduction and exemption rules 1 When calculating the net income of a family unit for the purposes of section 24 (b) [amount of disability assistance] of this regulation, (a)the following are exempt from income: (i) any income earned by a dependent child attending school on a full-time basis;

APPEAL NUMBER 2021-00056

(ii) Repealed. [B.C. Reg. 96/2017, App. 2, s. 2 (a).] (iii) Repealed. [B.C. Reg. 48/2010, Sch. 1, s. 2 (c).] (iv) a family bonus, except the portion treated as unearned income under section 10 (1) of this Schedule; (iv.1) the Canada child benefit, except the portion treated as unearned income under section 10 (1) of this Schedule; (v) the basic child tax benefit; (vi) a goods and services tax credit under the Income Tax Act (Canada); (vii) a tax credit under section 8 [refundable sales tax credit], 8.1 [climate action tax credit] or 8.2 [BC harmonized sales tax credit] of the Income Tax Act (British Columbia); (viii) individual redress payments granted by the government of Canada to a person of Japanese ancestry; (ix) individual payments granted by the government of Canada under the Extraordinary Assistance Plan to a person infected by the human immunodeficiency virus; (x) individual payments granted by the government of British Columbia to a person infected by the human immunodeficiency virus or to the surviving spouse or dependent children of that person; (xi) individual payments granted by the government of Canada under the Extraordinary Assistance Plan to thalidomide victims; (xii) money that is (A)paid or payable to a person if the money is awarded to the person by an adjudicative panel in respect of claims of abuse at Jericho Hill School for the Deaf and drawn from a lump sum settlement paid by the government of British Columbia, or (B)paid or payable to or for a person if the payment is in accordance with the settlement agreement approved by the Supreme Court in Action No. C980463, Vancouver Registry; (xii.1) money that is paid or payable to or for a person if the payment is in accordance with the settlement under the Final Settlement Agreement and Supplementary Agreement approved by the Federal Court June 22, 2018 in Court File No. T-370-17, Todd Edward Ross et al. v. Her Majesty the Queen; (xii.2) money that is paid or payable to or for a person if the payment is in accordance with the settlement under the Final Settlement Agreement approved by the Federal Court January 30, 2019 in Court File No. T-1068-14, Raymond Michael Toth v. Her Majesty the Queen; (xiii) the BC earned income benefit;

APPEAL NUMBER 2021-00056

(xiv) money paid or payable under the 1986-1990 Hepatitis C Settlement Agreement made June 15, 1999, except money paid or payable under section 4.02 or 6.01 of Schedule A or of Schedule B of that agreement; (xv) a rent subsidy provided by the provincial government, or by a council, board, society or governmental agency that administers rent subsidies from the provincial government; (xvi) Repealed. [B.C. Reg. 197/2012, Sch. 2, s. 11 (a).] (xvii) money paid or payable to a person in settlement of a claim of abuse at an Indian residential school, except money paid or payable as income replacement in the settlement; (xvii.1) money that is paid or payable to or for a person if the payment is in accordance with (A)the Sixties Scoop Settlement made November 30, 2017, or (B)the Federal Indian Day Schools Settlement made March 12, 2019, as amended May 13, 2019; (xviii) post adoption assistance payments provided under section 28 (1) or 30.1 of the Adoption Regulation, B.C. Reg. 291/96; (xix) a rebate of energy or fuel tax provided by the government of Canada, the government of British Columbia, or an agency of either government; (xx) money paid by the government of British Columbia, under a written agreement, to a person with disabilities or to a trustee for the benefit of a person with disabilities to enable the person with disabilities to live in the community instead of in an institution; (xxi) Repealed. [B.C. Reg. 85/2012, Sch. 2, s. 7.] (xxii) payments granted by the government of British Columbia under section 8 [agreement with child's kin and others] of the Child, Family and Community Service Act; (xxiii) payments granted by the government of British Columbia under the Ministry of Children and Family Development's At Home Program; (xxiv) Repealed. [B.C. Reg. 85/2012, Sch. 2, s. 7.] (xxv) payments granted by the government of British Columbia under an agreement referred to in section 93 (1) (g) (ii) of the Child, Family and Community Service Act, for contributions to the support of a child; (xxvi) a loan that is (A)not greater than the amount contemplated by the recipient's business plan, accepted by the minister under section 70.1 of this regulation, and (B)received and used for the purposes set out in the business plan; (xxvii) payments granted by the government of British Columbia under the Ministry of Children and Family Development's

APPEAL NUMBER 2021-00056

(A)Autism Funding: Under Age 6 Program, or (B)Autism Funding: Ages 6 — 18 Program; (xxviii) Repealed. [B.C. Reg. 148/2015, App. 2, s. 1 (a).] (xxix) payments made by a health authority or a contractor of a health authority to a recipient, who is a "person with a mental disorder" as defined in section 1 of the Mental Health Act, for the purpose of supporting the recipient in participating in a volunteer program or in a mental health or addictions rehabilitation program; (xxx) a refund provided under Plan I as established under the Drug Plans Regulation; (xxxi) payments provided by Community Living BC to assist with travel expenses for a recipient in the family unit to attend a self-help skills program, or a supported work placement program, approved by Community Living BC; (xxxii) a Universal Child 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 blood products in Canada prior to 1986 or after July 1, 1990, except money paid under that agreement as income replacement; (xxxiv) money withdrawn from a registered disability savings plan; (xxxv) a working income tax benefit provided under the Income Tax Act (Canada); (xxxvi) Repealed. [B.C. Reg. 180/2010, s. 2 (b).] (xxxvii) the climate action dividend under section 13.02 of the Income Tax Act; (xxxviii) money paid or payable to a person under the Criminal Injury 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 was under 19 years of age; (xxxix) money that is paid or payable to or for a person if the payment is in accordance with the settlement agreement approved by the Supreme Court in Action No. S024338, Vancouver Registry; (xl) payments granted by the government of British Columbia under the Ministry of Children and Family Development's Family Support Services program; (xli) payments granted by the government of British Columbia under the Ministry of Children and Family Development's Supported Child Development program; (xlii) payments granted by the government of British Columbia under the Ministry of Children and Family Development's Aboriginal Supported Child Development program;

APPEAL NUMBER 2021-00056

(xliii) money paid or payable from a fund that is established by the government of British Columbia, the government of Canada and the City of Vancouver in relation to recommendation 3.2 of the final report of the Missing Women Commission of Inquiry; (xliv) payments granted by the government of British Columbia under the Temporary Education Support for Parents program; (xlv) a BC early childhood tax benefit; (xlv.1) a BC child opportunity benefit; (xlvi) child support; (xlvii) orphan's benefits under the Canada Pension Plan Act (Canada); (xlviii) money or other value received, by will or as the result of intestacy, from the estate of a deceased person; (xlix) gifts; (l) education and training allowances, grants, bursaries or scholarships, other than student financial assistance; (li) money withdrawn from a registered education savings plan; (lii) compensation paid or payable under Division 5 [Compensation in Relation to Death of Worker] of Part 4 [Compensation to Injured Workers and Their Dependants] or section 225 [compensation in relation to worker death before July 1, 1974] of the Workers Compensation Act to a dependant, as defined in section 1 of that Act, who is a child, as defined in section 165 (1) of that Act; (liii) money that is paid or payable by or for Community Living BC to or for a person if the payment is in accordance with an award in a legal proceeding or with a settlement agreement in respect of a claim for injury, loss or damage caused by Community Living BC, an employee of Community Living BC or a person retained under a contract to perform services for Community Living BC; (liv) money that is paid or payable by the government of British Columbia to or for a person if the payment is in accordance with an award in a legal proceeding or with a settlement agreement in respect of a claim for injury, loss or damage caused by the minister, the ministry, an employee of the ministry or a person retained under a contract to perform services for the ministry; (liv.1) money that is paid or payable by the government of British Columbia to or for a person if the payment is in accordance with an award in a legal proceeding or with a settlement agreement in respect of a claim for injury, loss or damage caused by the Minister of Children and Family Development, that ministry, an employee of that ministry or a person retained under a contract to perform services for that ministry;

APPEAL NUMBER 2021-00056

(liv.2) money that is paid or payable by the government of British Columbia to or for a person because the person was a resident of Woodlands School; (lv) a disabled contributor's child's benefit paid or payable under the Canada Pension Plan; (lvi) payments granted under an agreement referred to in section 94 of the Child, Family and Community Service Act; (lvii) money that is paid or payable, in respect of a child, from property that comes into the control of, or is held by, the Public Guardian and Trustee; (lviii) money that is paid or payable from a settlement in respect of Treaty No. 8 agricultural benefits; (lviv) money that is paid or payable from a settlement under (A)the Cadboro Bay Litigation Settlement Agreement, dated for reference November 1, 2017, between the Esquimalt Nation and Canada, or (B)the settlement agreement, dated for reference October 30, 2017, between the Songhees Nation and Canada; (lx) money that is paid or payable under the Memorial Grant Program for First Responders established under the authority of the Department of Public Safety and Emergency Preparedness Act (Canada); (lxi) money, or goods or services in kind, received or to be received by a participant in the Ministry of Social Development and Poverty Reduction's Work Experience Opportunities Grant program from a grant under the program, (b)any amount garnished, attached, seized, deducted or set off from income is considered to be income, except the deductions permitted under sections 2 and 6, (c)all earned income must be included, except the deductions permitted under section 2 and any earned income exempted under sections 3 and 4, and (d)all unearned income must be included, except the deductions permitted under section 6 and any income exempted under sections 3, 7 and 8.

Deductions from unearned income 6 The only deductions permitted from unearned income are the following: (a)any income tax deducted at source from employment insurance benefits; (b)essential operating costs of renting self-contained suites.

Exemptions — unearned income 7 (0.1) In this section:

APPEAL NUMBER 2021-00056

"disability-related cost" means a disability-related cost referred to in paragraph (a), (b), (c) or (e) of the definition of disability-related cost in section 12 (1) [assets held in trust for person with disabilities] of this regulation;

"disability-related cost to promote independence" means a disability-related cost referred to in paragraph (d) of the definition of disability-related cost in section 12 (1) of this regulation;

"intended registered disability savings plan or trust", in relation to a person referred to in section 12.1 (2) [temporary exemption of assets for person with disabilities or person receiving special care] of this regulation, means an asset, received by the person, to which the exemption under that section applies;