When the Régie des rentes du Québec (RRQ) or Canada Customs and Revenue Canada (CCRC) recalculate the family allowance or NCBS, for example following an increase in family income for the reference year, the result may be a recovery of benefits (FA or NCBS) already paid by these organizations.
The family receiving last resort financial assistance suffers a loss since the FA adjustment or the NCBS adjustment have been reduced by an amount of family allowance or NCBS greater than what the family should actually receive, following the recalculation by the RRQ and CCRC.
In certain circumstances Income Security is authorized to recalculate the FA or NCBS destitution clause according to the terms and conditions given below, regardless of the reason for the claim.
1. CIRCUMSTANCES IN WHICH INCOME SECURITY DOES A RECALCULATION
The person who receives the claim for recovery from the RRQ or CCRC.
- has, at some point during the six months prior to the date of the claim, had assistance reduced or cancelled, or an application for assistance refused because of the family allowance or NCBS that is being claimed;
- informs Income Security in the month following the claim;
- If, following a comparison of files of Canada Customs and Revenue Canada, the counsellor notes that the organizations has recalculated the NCBS, he or she must contact the client and ask him or her to produce the notice of claim and determine whether the client intends to challenge the claim.
- shows, if he or she considers the claim unfounded, that appropriate action has been taken to challenge the claim with the organization concerned.
- In this case, the recalculation is not done until the organization gives its decision and only if the decision is unfavourable.
AND
The claim is for family allowance or NCBS, and is dated after July 31, 1998.
RC or the CCRC may seek to recover monies which are not family allowance or NCBS; for example, the RRQ may seek to recover an allowance for a child with a disability or an allowance for the birth of a child, and RC may claim the CCRC or some other debt related to taxation.
Income Security does a recalculation only for the part of the claim for recovery that is for family allowance or NCBS.
2. RECALCULATION OF FA OR NCBS DESTITUTION CLAUSE
- If assistance was reduced
The person who receives the claim for recovery has remained a client. Income Security takes into account the new amount of family allowance or NCBS and makes up the difference between the amount already paid under the FA or NCBS destitution clause and what the family is entitled to according to the RRQ’s or CCRC’s recalculation for a period of not more than six months before the date of the claim. The client does not have to provide any documentation other than the notice of claim from the RRQ or CCRC.
- If assistance was cancelled or refused
The person who receives the claim for recovery was not a client. Income Security reconstitutes the deficit for each month in question (maximum of 6 months) prior to the date of the claim, taking into account the recalculation done by the RRQ or CCRC. The person must provide his or her monthly statements for the months in question following the cancellation or refusal, as well as the notice of claim from the RRQ or CCRC.
3. RETROACTIVE PAYMENT
Retroactive payment resulting from the recalculation of the FA or NCBS destitution clause is made for a period of not more than six months prior to the date of the claim, including the month of the claim if the claim includes the family allowance or NCBS already paid for that month. PAYMENT IS ALWAYS MADE TO THE CLIENT.
Reimbursable assistance may have to be paid later in these cases. When all of the claim cannot be reimbursed from the retroactive payment, or when the claim is for a debt other than family allowance or NCBS and the RRQ or CCRC reduces these allowances to compensate for the amount that is still due, last resort financial assistance may be granted, taking into account the amount of family allowance or NCBS actually received and the amount reduced because of the compensation; however, it will be reimbursable up the amount of these reductions as soon as the reductions have ceased.
It is important that the client be clearly told that he or she will have to pay back assistance received in respect of the amounts deducted for compensation by the RRQ or CCRC, and to give the client the choice of immediately paying back the amounts calculated before the compensation begins in order to avoid a later claim, especially when the amounts deducted are small.