Appeal Number 2022-0278 Part C – Decision Under Appeal The decision under appeal is the Ministry of Social Development and Poverty Reduction’s (the ministry) reconsideration decision dated November 1, 2022, which determined the appellant’s income from the Work Safe BC (WCB) for August 2022 must be deducted from their October 2022 disability assistance (DA). Specifically, the ministry determined that WCB income from the Independence and Home Maintenance Allowance (IHMA) and the Temporary Personal Care Allowance (TPCA) are not benefits exempt from income under Schedule B of the Employment and Assistance for Persons with Disabilities Regulation (EAPWDR). Therefore, they must be deducted from DA pursuant to section 24 of the EAPWDR.
Part D – Relevant Legislation Employment and Assistance for Persons with Disabilities Regulation, sections 1,9, 24, 29, Schedules A and B
(Relevant Legislation follows decision in Appendix A)
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Appeal Number 2022-0278 Part E – Summary of Facts The appellant receives DA as a two-parent family, where both adults are Persons with Disabilities (PWD), with one dependant child.
Information Before the Ministry at Reconsideration
• A Request for Reconsideration (RFR) submitted by the appellant on October 18, 2022. The appellant wrote (in summary): o She receives Independence and Home Maintenance Allowance (IHMA), Temporary Personal Care Allowance (TPCA), along with Temporary Wage Loss Benefits (TWLB), as she was injured at work and continues to have ongoing medical issues. These benefits allow her to remain at home with assistance versus entering a care home. o IHMA is intended to help workers with activities of daily living and maintenance of their home. (Handout provided). She uses them for various reasons: snow removal; weatherproofing supplies; general yard maintenance; cleaning interior and exterior of home. o TPCA is intended to provide her assistance with personal care such as: driving her and her family to and from appointments; wound care supplies; assistance with grocery shopping; money towards prepared foods; assisting with daily care needs; and pain management for over-the-counter medications. o The IHMA and TPCA should remain exempt income (they were previously approved by the ministry) as they are needed for her health and safety. o She has no beneficial interest in the money from IHMA and TPCA as it is dispersed through her to meet expenses generated by her injuries. WCB uses this method as it is convenient for their agency. o Other methods of covering injury related expenses do not fall under the definition of unearned income. • A printout which shows “Wageloss” Section 191 payments made from May 10, 2021, to October 9, 2022, with the latest payment in the amount of $1,715.84. • A printout which shows Occupational Therapy and Psychological Services payments made from May 4, 2022, to September 28, 2022.
Information Submitted After Reconsideration
A Notice of Appeal (NOA) form dated November 10, 2022, on which the appellant wrote that she had been previously approved for her medical expenses and home support, that she needs them to survive and stay home, and that they are needed for her safety.
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Appeal Number 2022-0278 At the hearing, the appellant explained that ini tially when she informed the ministry, in June 2020, that she was receiving the TPCA and IHMA they told her because these payments were to pay for her medical expenses, they were exempt from being deducted from her DA. On August 29, 2022, she was informed that these were no longer exempt. The appellant argues that she doesn’t think she should be penalized because the legislation is not worded to include money received from WCB when they are used for medical expenses.
The appellant stated that when she first went on WCB in 2013, she would submit receipts to WCB for various medical expenses related to her injury, and they would reimburse her for these receipts. However, because she stayed on WCB longer than initially anticipated, in July 2020 WCB decided it would be easier to provide her with a monthly payment for the TPCA and IHMA. The payments are based on the seasons, and what her needs are. The appellant explained that she consulted with the ministry in August 2022 with regards to how the money she receives for medical expenses from WCB could be considered exempt. She wondered if WCB returned to reimbursing her on a receipt basis, rather than paying a set amount each month, would allow the income to be exempt. The ministry informed her that because WCB will be depositing funds directly to her account it would still be considered unearned income from WCB, because they are not listed as wage loss payments. The ministry explained to her that wage loss payments are legislated as qualifying unearned income, and have an annual earnings exemption allowed. The appellant explained she is aware that she reached the annual earnings exemption amount at the end of August 2022, and she does not have an issue with that, only with the fact that the TPCA and IHMA are to be deducted dollar for dollar in the new year.
The appellant explained that she has approached other agencies, such as Medical Services Plan, for assistance with home care. She was informed that because she receives WCB income she is not eligible for assistance for home care from them. The ministry does offer medical transportation allowance to travel to appointments, however only if it is over 20km from home. Most of her appointments are within 20km so she does not qualify for funding for going to medical appointments. She receives money from WCB to travel to appointments instead. The ministry does not cover over-the-counter medication, or assistance with home maintenance that she cannot do because of her injury, so she uses the TPCA and IHMA for that. She feels she is caught between various governing agencies and the legislation should be amended to include any money received from WCB for care or supplies related to an injury should be considered exempt.
At the hearing, the ministry reviewed the reconsideration decision and explained further that section 1 of the legislation clearly states that income from WCB is unearned income and it is only the wage loss income the appellant receives that is qualifying unearned
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Appeal Number 2022-0278 income, which has an annual earnings exempt ion.
The ministry could not explain why the appellant had received an exemption for the TPCA and IHMA from July 2020 to August 2022, however, when a review of the appellant’s file occurred, and it was discovered it was not being deducted from the DA, they are required to now go forward with deducting it.
When the panel questioned whether funds withdrawn from a Registered Disability Plan, or a Trust, to pay for disability related expenses are exempt, the ministry explained they are, and that a person on DA can have up to $100,000 in the Plan. A person on DA can also have money left in a trust account to use for disability related expenses. Legislation allows that any withdrawals for medically related expenses are exempt from being deducted from DA. The ministry argues that WCB benefits, payments and pensions are specifically defined in the legislation as unearned income. Unearned income that does not qualify for an earnings exemption, or is not listed in the legislation as otherwise exempt, must be deducted from the appellant’s DA.
When asked if WCB were to pay the appellant’s suppliers directly, whether those payments would be deducted from her DA, the ministry explained it is not income for her so it would not be deducted. The appellant added that initially WCB did pay for nursing directly, however, because she required service at unscheduled times she had to switch to hiring privately and has to pay them directly.
Admissibility of Additional Information
The panel admits the appellant’s NOA and oral evidence under section 22(4) of the Employment and Assistance Act, which allows for the admission of evidence reasonably required for a full and fair disclosure of all matters related to the decision under appeal.
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Appeal Number 2022-0278 Part F – Reasons for Panel Decision The issue under appeal is whether the ministry decision dated November 1, 2022, which determined the appellant’s IMHA and TPCA income from WCB is considered unearned income that must be deducted from her DA, is reasonably supported by the evidence or is a reasonable interpretation of the legislation.
The appellant’s position is the money she receives from WCB is specifically given so she can pay for various medical supplies or home maintenance that she is not able to purchase or do for herself because of her work-related injury. She does not benefit from the WCB payments for the TPCA or IHMA because all funds are used for that purpose, therefore, the money should not be deducted from her DA.
The ministry’s position is WCB income is legislated as being unearned income. The legislation allows for wage-loss replacement to have an annual earnings exemption and for a specifically listed exemption. All other WCB income, such as the appellant’s TPCA and IHMA, which are not listed exemptions, must be deducted dollar for dollar.
Panel Decision
The legislation that pertains to how income from WCB is considered can be found in the EAPWDR.
Section 1, defines unearned income as
“any income that is not earned income, and includes, without limitation, money or value received from any of the following: …. (j) workers' compensation benefits and disability payments or pensions”
Section 24 sets out that the amount of DA that may be provided is not more than the support and shelter listed in Schedule A minus the family’s net income determined under Schedule B.
When calculating the net income of a family, section 1 of Schedule B allows for exemptions. Section 1(a)(lii) allows an exemption for WCB payments provided to a dependent of a worker in the event of their death. This is not applicable in the appellant’s circumstance. TPCA and IHMA are not listed as an exemption in section 1. However, section 3 of Schedule B allows for an earnings exemption for certain types of income. The definition for "qualifying income" allows an annual earnings exemption for unearned
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Appeal Number 2022-0278 income that is compensation paid under sectio n 191 [temporary total disability] or 192 [temporary partial disability] of the Workers Compensation Act.
In the appellant’s circumstance, she receives TWLB of $1715.84 every two weeks, pursuant to section 191 of the Workers Compensation Act, as well as TPCA for $342.90 and IHMA for $291.60 per month. The ministry determined her eligible for the annual earnings exemption for the TWLB. The appellant does not dispute that she reached the annual earnings exemption limit at the end of August 2022, so the panel will not be making any determination with regards to the appellant’s wage-loss benefits.
The panel finds the appellant’s argument, because the TPCA and IHMA are issued to her due to a work-related injury and because they are to be used for medically related expenses they should not be deducted from her DA, to be compelling. However, the panel must consider what the EAPWDR allows for exemptions.
Section 1 clearly defines WCB income as unearned income and section 1 of Schedule B does not identify the appellant’s WCB benefits as having an exemption, nor is the TPCA and IHMA paid pursuant to section 191 of the Worker’s Compensation Act. Pursuant to section 24, those allowances must then be deducted from the amount of DA the appellant is eligible for. Therefore, the panel finds the ministry was reasonable to determine the monthly TPCA and IHMA must be deducted.
Conclusion
The panel finds that the ministry’s determination the appellant’s WCB income for TPCA and IHMA must be considered unearned income and deducted from her DA was a reasonable application of the legislation. The panel therefore confirms the ministry’s decision. The appellant is not successful on this appeal.
EAPWDR
Definitions 1 (1) In this regulation: "earned income" means
APPENDIX A RELEVANT LEGISLATION
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Appeal Number 2022-0278 (a) any money or value received in exchange fo r work or the provision of a service, (b) Repealed. [B.C. Reg. 197/2012, Sch. 2, s. 1 (a).] (c) pension plan contributions that are refunded because of insufficient contributions to create a pension, (d) money or value received from providing room and board at a person's place of residence, or (e) money or value received from renting rooms that are common to and part of a person's place of residence; "unearned income" means any income that is not earned income, and includes, without limitation, money or value received from any of the following: (a) money, annuities, stocks, bonds, shares, and interest bearing accounts or properties; (b) cooperative associations; (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; (f) any type or class of Canada Pension Plan benefits; (g) employment insurance; (h) union or lodge benefits; (i) financial assistance provided under the Employment and Assistance Act or provided by another province or jurisdiction; (j) workers' compensation benefits and disability payments or pensions; (k) surviving spouses' or orphans' allowances; (l) a trust or inheritance; (m) rental of tools, vehicles or equipment; (n) rental of land, self-contained suites or other property except the place of residence of an applicant or recipient; (o) interest earned on a mortgage or agreement for sale; (p) maintenance under a court order, a separation agreement or other agreement; (q) education or training allowances, grants, loans, bursaries or scholarships; (r) a lottery or a game of chance; (s) awards of compensation under the Criminal Injury Compensation Act or awards of benefits under the Crime Victim Assistance Act, other than an award paid for repair or replacement of damaged or destroyed property; (t) any other financial awards or compensation; (u) Federal Old Age Security and Guaranteed Income Supplement payments; (v) financial contributions made by a sponsor pursuant to an undertaking given for the purposes of the Immigration and Refugee Protection Act (Canada) or the Immigration Act (Canada); (w) tax refunds; (x) gifts of money, annuities, stocks, bonds, shares, and interest bearing accounts or
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Appeal Number 2022-0278 (y) gifts in the form of payment by another per son of a debt or obligation Limits on income
9 (2) A family unit is not eligible for disability 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 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.
Reporting requirement 29 For the purposes of section 11 (1) (a) [reporting obligations] of the Act, (a) the report must be submitted by the 5th day of the calendar month following the calendar month in which one or more of the following occur: … (iii) a family unit receives unearned income that is compensation paid under section 191 [temporary total disability] or 192 [temporary partial disability] of the Workers Compensation Act as set out in paragraph (b) (vii), and (b) the information required is all of the following, as requested in the monthly report form specified by the minister: (i) change in the family unit's assets; (ii) change in income received by the family unit and the source of that income; (iii) change in the employment and educational circumstances of recipients in the family unit; (iv) change in family unit membership or the marital status of a recipient; (v) any warrants as described in section 14.2 (1) of the Act; (vi) the amount of earned income received by the family unit in the calendar month and the source of that income; (vii) the amount of unearned income that is compensation paid under section 29 or 30 of the Workers Compensation Act received by the family unit in the calendar month.
Schedule A Disability Assistance Rates
Maximum amount of disability assistance before deduction of net income
1 (1) Subject to this section and sections 3 and 6 to 8 of this Schedule, the amount of
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Appeal Number 2022-0278 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
Item
7
Column 1 Family unit composition
Two applicants / recipients and one or more dependent children
Column 2 Age or status of applicant or recipient
Column 3 Amount ($)
Both applicants / recipients are 1 953.50 persons with disabilities
Monthly Shelter Allowance
Item
4
Column 1 Family Unit Size
3 persons
Column 2 Maximum Monthly Shelter $
665
Schedule B
Net Income Calculation
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; (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;
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Appeal Number 2022-0278 (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; (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
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Appeal Number 2022-0278 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, (xviii) inancial assistance payments provided under Part 6 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 (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
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Appeal Number 2022-0278 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; (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; (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;
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Appeal Number 2022-0278 (li) money withdrawn from a registered e ducation savings plan; (lii) compensation paid or payable under section 17 [Compensation in Relation to the Death of a Worker] of Part 4 [compensation to Injured Workers and Their Dependant] 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; (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
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Appeal Number 2022-0278 participant in the Ministry of Social Deve lopment and Poverty Reduction's Work Experience Opportunities Grant program from a grant under the program; (lxii) a rebate of all or part of a premium paid to the Insurance Corporation of British Columbia under the Insurance (Vehicle) Act and the plan operated under that Act; (lxiii) an amount that is paid or payable, as a single payment or series of payments, as follows: (A) the amount is paid or payable by a person who is or was a landlord, owner or manager, or a person who holds or held a similar position, in relation to leased, rented or licensed residential premises, whether or not the Residential Tenancy Act or the Manufactured Home Park Tenancy Act applies to that premises; (B) the amount is paid or payable to a person who is or was a tenant, lessee, licensee or occupant, or a person who has or had a similar right or permission to use the premises for residential purposes; (C) the amount is paid or payable as full or partial compensation for loss of the residential use of the premises, including for eviction, relocation, demolition, temporary displacement during repair, renovation or redevelopment, or as an inducement to cease or suspend residential use; (D) the amount is paid or payable under an enactment, a policy or a contract, or voluntarily or at the discretion of the person referred to in clause (A) (lxiv) money that is paid or is payable to or for a person from a settlement under the Williams Treaties Settlement Agreement signed August 22, 2018; (lxv) money that is paid or is payable to or for a person from a settlement under the Missanabie Cree First Nation Treaty Land Entitlement Settlement Agreement signed April 24, 2020; (lxvi) money that is paid or is payable to or for a person from a settlement under the Peepeekisis Cree Nation File Hills Colony Specific Claim Settlement Agreement signed March 23, 2021; (lxvii) money that is paid or is payable to or for a person from a settlement under an agreement to settle claims relating to the transfer of the Seabird Island Indian Reserve in 1959 by the Government of Canada to the Seabird Island Band and the distribution of shared trust funds on a per capita basis,
(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
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Appeal Number 2022-0278 and any earned income exempted under sectio ns 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 earned income
2 The only deductions permitted from earned income are the following: (a) any amount deducted at source for (i) income tax, (ii) employment insurance, (iii) medical insurance, (iv) Canada Pension Plan, (v) superannuation, (vi) company pension plan, and (vii) union dues; (b) if the applicant or recipient provides both room and board to a person at the applicant's or recipient's place of residence, the essential operating costs of providing the room and board; (c) if the applicant or recipient rents rooms that are common to and part of the applicant's or recipient's place of residence, 25% of the gross rent received from the rental of the rooms.
Annual exemption — qualifying income
3 (1) In this section: "base amount" means (a) $1 250, in the case of a family unit that includes only one recipient, (b) $1 500, in the case of a family unit that includes two recipients, only one of whom is designated as a person with disabilities, and (c) $2 500, in the case of a family unit that includes two recipients who are designated as persons with disabilities.
"initial qualifying month", in respect of a family unit and a calendar year, means the calendar month specified for the family unit under subsection (5);
"qualifying income" means (a) earned income, except the deductions permitted under section 2, and (b) unearned income that is compensation paid under section 191 [temporary total
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Appeal Number 2022-0278 disability] or 192 [temporary partial disab ility] of the Workers Compensation Act; "qualifying month", in respect of a family unit and a calendar year, means (a) the initial qualifying month for the family unit in the calendar year, and (b) any subsequent calendar month in the calendar year that is a calendar month for which the family unit is eligible to receive disability assistance under the Act;
"recognized family unit", in respect of a calendar year, means a family unit that (a) forms during the calendar year, and (b) includes at least one person who (i) is designated as a person with disabilities, and (ii) was previously a recipient in another family unit that was eligible to receive disability assistance under the Act for a calendar month in the calendar year.
(2) For the purposes of section 1 (c) and (d), the lesser of the following amounts is exempt income of a family unit for a qualifying month: (a) the qualifying income of the family unit for the qualifying month; (b )the exemption limit of the family unit for the qualifying month calculated in accordance with subsection (3).
(3) The exemption limit of a family unit for a qualifying month for the family unit in a calendar year is the following: (a) in the case of the initial qualifying month for the family unit in the calendar year, the amount calculated in accordance with subsection (4); (b) in the case of any other qualifying month for the family unit in the calendar year, the amount calculated in accordance with subsection (7).
(4) For the purposes of subsection (3) (a), the exemption limit of a family unit for the initial qualifying month for the family unit in a calendar year is calculated as follows: (a) in the case of a family unit other than a recognized family unit, the exemption limit is the product of (i) the base amount for the family unit, and (ii) 12 minus the number of calendar months in the calendar year that are before that initial qualifying month; (b) in the case of a recognized family unit that includes only one recipient, the exemption limit is the product of (i) the base amount for the recognized family unit, (ii) 12 minus the number of calendar months in the calendar year that are before that initial qualifying month; (c) in the case of a recognized family unit that includes two recipients, the exemption limit
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Appeal Number 2022-0278 is the sum of the carryover amounts for the rec ipients calculated in accordance with subsection (6).
(5) For the purposes of subsection (4), the initial qualifying month for a family unit is the following: (a) in the case of a family unit described in subsection (4) (a), the initial qualifying month is (i) the first calendar month for which the family unit is eligible to receive disability assistance under the Act, if (A) a member of the family unit who is designated as a person with disabilities previously received disability assistance under the Act or a former Act, as a person with disabilities, or (B) a member of the family unit received income assistance under the Employment and Assistance Act for the calendar month immediately preceding that first calendar month, or (ii) if subparagraph (i) does not apply, the first calendar month, after the first calendar month referred to in that subparagraph, for which the family unit is eligible to receive disability assistance under the Act; (b) in the case of a family unit described in subsection (4) (b), the initial qualifying month is the first calendar month, after the calendar month in which the family unit forms, for which the family unit is eligible to receive disability assistance under the Act; (c) in the case of a family unit described in subsection (4) (c), the initial qualifying month is (i) the calendar month in which the family unit forms, if the family unit is eligible to receive disability assistance under the Act for that calendar month, or (ii) if subparagraph (i) does not apply, the first calendar month, after the calendar month in which the family unit forms, for which the family unit is eligible to receive disability assistance under the Act ….
(7) For the purposes of subsection (3) (b), the exemption limit of a family unit for any other qualifying month (an "index qualifying month") for the family unit in the calendar year is the greater of (a) nil, and (b) the exemption limit of the family unit for the last qualifying month for the family unit before the index qualifying month, adjusted as follows: (i) by deducting the qualifying income of the family unit in that last qualifying month; ….
Exemptions – unearned income
EAAT (26/10/22) 18
Appeal Number 2022-0278
7. ( 0.1) In this section: "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; "structured settlement annuity payment" means a payment referred to in subsection (2) (b) (iii) made under the annuity contract referred to in that subsection.
(1) The following unearned income is exempt: (a) the portion of interest from a mortgage on, or agreement for sale of, the family unit's previous place of residence if the interest is required for the amount owing on the purchase or rental of the family unit's current place of residence; (b) $50 of each monthly Federal Department of Veterans Affairs benefits paid to any person in the family unit; (c) a criminal injury compensation award or other award, except the amount that would cause the family unit's assets to exceed, at the time the award is received, the limit applicable under section 10 [asset limits] of this regulation; (d) a payment made from a trust to or on behalf of a person referred to in section 12 (1) [assets held in trust for person with disabilities] of this regulation if the payment is applied exclusively to or used exclusively for (i) disability-related costs, (ii) the acquisition of a family unit's place of residence, (iii) a registered education savings plan, or (iv) a registered disability savings plan; (d.1) subject to subsection (2), a structured settlement annuity payment made to a person referred to in section 12 (1) of this regulation if the payment is applied exclusively to or used exclusively for an item referred to in subparagraph (i), (ii), (iii) or (iv) of paragraph (d) of this subsection; (d.2) money expended by 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 from an intended registered disability savings plan or trust if the money is applied exclusively to or used exclusively for disability-related costs; (d.3) any of the following if applied exclusively to or used exclusively for disabilityrelated
EAAT (26/10/22) 19
Appeal Number 2022-0278 costs to promote independence: (i) a payment made from a trust to or on behalf of a person referred to in section 12 (1) of this regulation; (ii) a structured settlement annuity payment that, subject to subsection (2), is made to a person referred to in section 12 (1) of this regulation; (iii) money expended by a person referred to in section 12.1 (2) of this regulation from an intended registered disability savings plan or trust;
EAAT (26/10/22)
20
Part G – Order The panel decision is: (Check one)
APPEAL NUMBER 2022-0278
☒Unanimous ☐By Majority
The Panel ☒Confirms the Ministry Decision ☐Rescinds the Ministry Decision If the ministry decision is rescinded, is the panel decision referred back to the Minister for a decision as to amount? Yes☐ No☐
Legislative Authority for the Decision: Employment and Assistance Act Section 24(1)(a)☐ or Section 24(1)(b) ☒ Section 24(2)(a)☒ or Section 24(2)(b) ☐
Part H – Signatures Print Name Janet Ward Signature of Chair
Print Name Margarita Papenbrock Signature of Member
Print Name Joe Rodgers Signature of Member
EAAT (26/10/22)
Date (Year/Month/Day) 2022/11/30
Date (Year/Month/Day) 2022/12/02
Date (Year/Month/Day) 2022/12/01
Signature Page