Prior to January 2022, this section was intended to increase the basic liquid asset exclusion by an amount equal to the total value of compensation or amounts paid:
- by a provincial or federal government to remedy an injustice or as compensation for damages;
- as a result of a class action, judgment or agreement as compensation for damages.
Since January 1, 2022, the regulations in this section are abolished and replaced by section 03.03.09 “Lump sum payments to compensate for injury or loss of physical or mental integrity”.
Grandfather clause
As of January 1, 2022, a single adult or family member who benefited from the increased basic liquid asset exclusion under the “Increased basic exclusion” section still qualifies if, as of December 31, 2021, that person was receiving Income Security Program benefits.
A complete list of the amounts covered can be found on the microsite at https://income-security.cssspnql.com/resources/.
The single adult or family member continues to qualify as long as they receive Income Security Program benefits.
Example:
A settlement agreement was reached in 2020 as a result of a class action lawsuit against Federal Indian Day Schools. A client of the Program receives a lump sum payment of $15,000 in October 2021, before the new settlement comes into effect. If they received benefits as of December 31, 2021, they will be grandfathered in and will qualify for the full exclusion as long as they keep receiving Income Security Program benefits.