As of January 1, 2007, the eligibility test for liquid assets applies only to people without a severely limited capacity for employment. This provision does not apply to people with a severely limited capacity for employment.
The first exception to the rule of anteriority of the deficit is that of assistance granted for the month of the application.
Eligibility for last resort financial assistance for the month of application is determined in two steps.
APPLICATION OF THE ELIGIBILITY TEST
This test is applied in the case of all new applications (processing in actual month MD), including:
-
new applications during the month of a cancellation (restoration) or during a subsequent month (reinstatement);
-
new applications following detention, whether applicants have been released or required to reside in a half-way house;
-
new applications submitted by persons admitted to shelter (eg.: following a cancellation for excess of liquid assets);
-
new applications for special benefits only (eg.: funeral expenses);
The test is not applied when a claim is made for an entire month.
GENERAL RULE OF APPLICATION
This step is essential before any further consideration is given to an application.
Liquid assets owned on the date of application are compared with an amount (refer to table below) determined by regulation based on family composition. In this step, it is not necessary to establish whether applicants will be eligible for a limited capacity for employment allowance, or to take into account their income or other details.
|
Family Composition |
Amounts determined by the Framework Policy |
||
|
Adults |
Dependent children * |
Effective 01-01-21 |
|
|
1 |
0 |
$ 887 |
|
|
1 |
1 |
$ 1 268 |
|
|
1 |
2 |
(1) $ 1 502 |
|
|
2 |
0 |
$ 1 319 |
|
|
2 |
1 |
$ 1 573 |
|
|
2 |
2 |
(1)$ 1 807 |
|
|
Student spouse |
(2)$ 887 |
||
| Sheltered adult OR adult required to reside in a shelter OR minor adult sheltered with her child | $ 887 | ||
- These amounts are increased for the third dependent child and for each additional child:
|
January 2021 |
$ 290 |
- These amount is added for the first dependant child and for each subsequent child:
|
|
1st Child |
|
|
January 2021 |
$ 298 |
$ 290 |
Basic amount have not being indexed
* An amount shall be added for each minor dependent child who receives an allowance for a handicapped child from the RRQ:
|
Janvier 2021 |
$ 200 |
SPECIAL RULE
This special rule applies to the sheltered independent adult whose financial assistance was cancelled for excess of liquid assets in the past six months. The adult placed in an intermediate resource or a foster home may also benefit from this rule if his or her status was that of a sheltered adult during that period. The amounts to be taken in consideration for the application of the first step of the eligibility test are $2500 when the adult has a severely limited capacity for employment and $1500 when he or she has a temporary limited capacity for employment.
To benefit from this provision, the adult is REQUIRED to meet three conditions:
1- To have had the status of sheltered person within the six months preceding his or her new application;
2- To have received a benefit as a sheltered person;
3- The reason for cancellation of his or her financial assistance was not an excess of liquid assets.
EXAMPLE
|
Month |
February 2020 |
March 2020 |
April 2020 |
May 2020 |
June 2020 |
July 2020 |
|
Residence |
Pavilion |
Pavilion |
Intermediate resource |
Intermediate resource |
Intermediate resource |
Intermediate resource |
|
Status |
Sheltered |
Sheltered |
SLCE |
SLCE |
SLCE |
SLCE |
|
Liquid assets owned on the last day of the month |
2 300 $ |
2 400 $ |
2 800 $ |
2 800 $ |
2 800 $ |
2 200 $ on the application day |
|
File status |
Active |
Active |
Active |
Cancelled |
Cancelled |
New application |
In our example, the amount applicable is $2,500 since the person meets the three conditions and has a severely limited capacity for employment.
CALCULATION OF THE 6 MONTH PERIOD
LIQUID ASSETS TO BE CONSIDERED
Most liquid assets are taken into consideration, including those created by the federal Canada Child Tax Benefit (CCTB) and the family allowance paid by the RRQ, except:
- liquid assets transferred (the squandering of liquid assets or their disposal without consideration will affect the calculation at a later stage);
- assets totally excluded;
- assets deriving from advance family allowance payments made;
- liquid assets deriving from:
- adjustment of employment-assistance benefits as a result of an administrative error, a review decision by the MSS or a decision handed down by the Appeal Committee or when money paid by an organization is reclaimed by the same organization;
- indemnity or amount paid by the Government of Canada or the Government of Quebec or by a company or organization (Japanese-Canadians, HIV-infected persons, victims of thalidomide);
- the amount from a succession up to a maximum of the debts and encumbrances of the succession by which the recipient is bound;
- the first $60,000 applicable (RRSP, retirement savings plans, grant or loan to repair a residence, start a business or create one’s own employment).
BASIC EXEMPTION IS NOT APPLIED
DETERMINATION OF THE AMOUNT
STEP 1:
ADD all the liquid assets held by the person CUSTOMER AND the members of his family, by taking into account the mentioned exclusions, the day of THE DEMAND:
- Amounts placed with a financial institution;
- Certificates of deposit and investments
- Shares and securities
- Liquid assets on hand
Where amounts have been placed with a financial institution, the liquid assets to be considered are equivalent to THE BALANCE ON THE BANK STATEMENT AFTER THE LATEST TRANSACTION ON THE DATE OF APPLICATION. If there is no entry on the date of application, the officer uses the balance after the latest transaction on the most recent date prior to the date of application. It should be noted that when the balance of an account is negative, it is not considered.
The update of the bank statement must be dated later than the date of application; however, an update dated the same day as the date of application can be accepted if the applicant confirms that no other transactions have been made that day.
OUTSTANDING CHEQUES
AT THIS STAGE, liquid assets OUTSTANDING ON THE DATE OF APPLICATION (cheques issued on the date of application at the latest) to cover housing, electricity and heating, provided that they ARE CASHABLE DURING THE MONTH OF THE APPLICATION, ARE SUBTRACTED from liquid assets considered, whether the account on which the cheque is drawn displays a positive or negative balance.
This includes a cheque for payment of rent for the previous month that has not yet been cashed; however, a cheque for payment of rent for the next month is not taken into account. The same goes for preauthorized deductions that have not been made on the date of the application.
Bills related to municipal taxes (property or other), household insurance, electricity, gas or heating are considered to be due upon receipt; liquid assets are reduced by the amount of the cheque made out by the applicant and cashable during the month of application.
Example: Municipal tax bill for $1,000 payable in two instalments on April 1 and July 1.
The applicant files an application on April 5 having already made out a cheque for $500 dated April 1 and another for $500 dated July 1; neither cheque has been cashed by the date of the application. The applicant’s liquid assets are reduced by the amount of the cheque cashable on April 1, namely $500.
If the applicant has made out a cheque for $1,000 dated April 1, the liquid assets are reduced by $1,000 if the cheque has not yet been cashed.
RESULT OF THE ELIGIBILITY TEST
If the liquid assets owned are GREATER than the amount determined by regulation, the applicant is declared to be INELIGIBLE FOR ASSISTANCE FOR THE ENTIRE MONTH IN WHICH HE OR SHE MAKES AN APPLICATION. The application is rejected and eligibility of the following month is not determined. If the applicant requires assistance for the following month, he or she will apply again the following month and the eligibility test is applied again.
However, the applicant may decide to cancel this application. When applying for the second time, the first liquid assets test is again applied and the application is processed according to the result obtained.
Special situation, eligibility interview set for the month following that of the application:
Sometimes, the decision of eligibility to financial assistance cannot be made during the month of the application. This administrative delay is often related to the fact that the appointment for the initial eligibility interview could not be set in the course of the month of application. This may penalize the applicant, since should he or she have been refused during the month of the application, he or she may have applied a second time earlier in the course of the following month.
This is why, in the event of refusal of financial assistance for the month of application due to an excess of liquid assets and that this refusal could not be considered in the course of that month, the officer will verify, if the delay is not due to the applicant, and take into consideration that a new application was made the following month, the first working day during which the applicant owns liquid assets equal or below the amount fixed by regulation.
Example:
A single adult applies for financial assistance on December 29, 2019. During the initial eligibility interview, on January 6, 2020, the officer recognizes that the liquid assets owned on the day of the application amounts to $850, an amount greater than that fixed by the Regulation ($816).
However, the amount of liquid assets amounts to $150 as of January 1, 2020.
The officer provides the required explanations to the applicant and offers to change the date of his or her application to January 3, 2020, i.e. the first working day of the following month and day on which the applicant passes the first eligibility test.
- If the liquid assets owned are EQUAL OR LOWER THAN the amount determined by regulation, go on to the SECOND STEP (refer to 5.6.8).