05.02.01 – Income, earnings, and pecuniary benefits

Note: The income, earnings and pecuniary benefits of the spouse eligible for the 66/72 benefit and of any dependent children are not considered in determining the benefit of the spouse who is a client of the Income Security Program.

The income of an adult or a family and any earnings or other pecuniary benefits realized* are SUBTRACTED from the adult-benefit to which have been added the applicable adjustments and the special benefits to which this adult or family may be entitled.

However, of the income to be subtracted, certain AMOUNTS qualifying as EXCLUDED work INCOME must be deducted first.

These amounts are:

EXCLUDED WORK INCOME

$200

sheltered independent adult
independent adult required to live in a half-way house ;
minor sheltered with child ;
independent adult;
single-parent family.

$300

two-parent family

Excluded work income also applies to:

maternity allowances paid by an employer, except when they are paid by an insurance or under the terms of a disability insurance contract or a long term sick leave;
maternity or parental benefits paid by ESDC.

INCLUSION DURING THE ASSISTANCE PERIOD

During the assistance period, income, earnings and pecuniary benefits are INCLUDED FOR THE MONTH IN WHICH THEY ARE DUE, regardless of whether or not the recipient has received them. Their effect is to reduce the following month's benefit in accordance with the principle of the anteriority of the deficit.

1. Assistance paid pending realization of a right

During a period in which a recipient is waiting for a right to be realized, income, earnings and pecuniary benefits resulting from the exercise of the right in question are NOT INCLUDED. When the right is realized, the principle of the anteriority of the deficit applies.

If the amount realized covers a PERIOD DURING WHICH THE PERSON WAS NOT RECEIVING ASSISTANCE, the amounts related to the period in question are not included in income, as they were not due in that month. They constitute a LIQUID ASSET for the month in which they were received.

2. Week-to-month conversion factor (4.34821)

Where a recipient receives income, earnings and pecuniary benefits paid on a weekly basis, and the income in question APPLIES TO THE ENTIRE MONTH, from the first to the last day of the month, one of the following conversion factors applies:

4.34821 beginning January 1st, 2013 (2.166, if income paid every 2 weeks);

It should be noted that, to establish assistance for the month of October 1996, the 4.333 factor is used even though the income included is that from September.

The payment method or pay period is irrelevant; thus, the week-to-month conversion factor will apply to an employee whose salary is calculated on a weekly basis, regardless of whether the payment method is every 2 weeks or once a month.

This conversion factor also applies to a claim made under sections 100 (first paragraph) and 101 or section 102 (first and second paragraphs) of the Act, regardless of whether the assistance was paid conditionally or unconditionally; however, the total of the assistance that is reimbursable under section 102 (first and second paragraphs) of the Act may not exceed the amount of the realized right; any excess is considered a liquid asset for the month in which it is received.

The conversion factor does not apply in the following cases:

to income included for the purpose of determining the assistance amount for the MONTH OF APPLICATION;
to income that fluctuates from month to month. The amount of the income actually due in a given month must be included;
to support income awarded by a court decision handed down after 01-12-95 and paid directly to the recipient by the Band and or Tribal Council.

Some examples of income, earnings and pecuniary benefits might include:

a salary or remuneration, including vacation pay;
self-employment earnings;
rent or proceeds from the rental of property;
benefits from a government agency or private organization: ESDC, CNESST, RRQ, SAAQ, Old Age Security, etc.;
an annuity resulting from a gift, succession or trust;
support payments; or:
an amount received for baby-sitting in one's own home or for providing room and board.

It can sometimes be hard to calculate the income due. This is true, for example, where an employer indicates only the salary paid for a given period or where the recipient receives both work income and employment insurance benefits. In such situations, the income indicated on the pay slip or SR-35B form, or on the ESDC benefit statement, is on an exceptional basis considered the income to be included.

Summary of the inclusion of income, earnings and pecuniary benefits for the month of application and during the assistance period

General rule

Vacation pay linked to termination

Employment insurance

Month of the application

Received or to be received during the month of application.

pending: (amount known) due.

pending: (amount unknown) conditional assistance.

paid: received or to be received during the month of application.

Month following the month of application

Income continues: due for the previous month (anteriority of the deficit).

Ceases the month of the application: excluded.

Received during the month

of application: not included (ceases).

Received later during the month of application: liquid assets.

Income continues: due for

the previous month

(anteriority of the deficit).

Pending: (amount known)

income due for the previous

month (anteriority of the deficit).

Pending: (amount unknown)

conditional assistance

continues.

Ceases the month of the application: excluded.

During the assistance period

Income due for the previous month (anteriority of the deficit).

Ceases: excluded for the following month if this type of income was received for three consecutive months.

Deemed due for the month

in which it ceases.

Except construction workers.

Pending: (amount unknown) due for the previous month (anteriority of the deficit).

Pending: (amount unknown)

conditional assistance.

Amount paid: due for the previous month (anteriority of the deficit).

Month that income ceases (during the assistance period)

Recalculate the deficit for the month that income ceases if:

income earned for three consecutive months

AND

during the month that it ceases, income is smaller than income earned the

previous month.

if both conditions do not exist: anteriority of the deficit.

ASSISTANCE PAID PENDING THE REALIZATION OF A RIGHT

Situation:

A recipient is waiting to receive a disability pension from the RRQ.

The RRQ pays $2,000 on August 10. This amount corresponds to the $500 pension amount payable for the months of May, June, July and August. This pension continues to be paid monthly.

The recipient informs us on August 15 that he has received this amount.

May

June

July

August

September

Adult benefit

$700

Income RECEIVED or to be received

$2,000

10/08

Income DUE

$500

Income included

---

$500

Assistance paid

$700

$200

Real deficit

$700

$200

In this case, a claim is established for June, July and August. The income of $500 DUE for August will reduce the assistance payable for September.

WORK EXPERIENCE – ACTIVE MEASURES

Clients who participate in such an activity must be registered in an individual development plan in order to maintain and increase work activities leading to permanent employment. Clients wishing to participate in such an activity must understand that part-time employment must be in line with the goals identified in their individual development plan.

Insufficient work income must be higher than the excluded work income allowed in the program. The following example can be used to determine whether generated income is higher than excluded work income. The amount may vary depending on the participant’s situation (e.g. 1 adult or 2 adults).

Participation rate	Income	Excluded work income
$824	$700	$200

$700.00 (income)

- $25.00 (6 %)

- $200.00 (excluded work income)

$ 475.00 *

* This amount represents the income used to determine eligibility. In the above situation, clients are eligible for $349.00 from the program.