N.B. Property located on reserve is subject to attachment by the Band Council
under Section 89 of the Indian Act.
A client must repay to the Band/Tribal Council:
- the amount of any benefits which the person, or as the case may be, his or her family HAS RECEIVED UNDULY, except where such assistance has been paid through administrative error which the person could not reasonably have noticed.
Assistance has been RECEIVED UNDULY if the adult or the family is INELIGIBLE (wholly or partly) or has in fact already received assistance for the same need. Any assistance that is not authorized under the Act or the Framework Policy is recoverable: this may be unauthorized benefits or authorized benefits that were overpaid.
When a person or family has not declared income or the value of property and the value of income and property would have decreased or cancelled the assistance to which they would have been entitled, the reimbursable assistance is calculated on the basis of INCOME and/or the value of accountable PROPERTY for each month in which they should have been taken into account. This is true of a person who has not declared the value of a piece of land which would have reduced his or her benefit by $50 a month for the last fifteen months. The sum of $50 x 15 = $750 will be claimed from him or her.
When a client declares to have worked without receiving appropriate remuneration or consideration in money or in kind, bearing in mind that the client is denied a suitable salary, a claim is established on the basis of the Framework Policy. If the client does not exercise his or her right of appeal or his/her right to be remunerated for his or her work, it is then considered that the client received improper assistance. The amount to be claimed corresponds to the salary he or she was denied.
However, when the debt results from the ongoing possession of liquid assets, repayment is limited to the amount above the basic exemption allowed during the period in which this was noted (refer to the example at the end of this item).
Each period, consisting of consecutive months during which the liquid assets were excessive, is treated separately in determining the assistance repayable.
- as soon as a LEGAL IMPEDIMENT to the alienation of property CEASES and up to the amount of net benefit from the disposition of this property, the amount of benefits that would not have been paid to the person or family if the property had been considered in calculating the amount of the benefit to an amount not exceeding the value of this property.
This means assistance granted pending liquidation of property when a legal impediment over which the adult or family had no control prevented the sale. The PART OF THE ASSISTANCE paid that corresponds to the difference between the needs of the adult or family and the amount of assistance to which they would have been entitled if the value of the property had been taken into account becomes repayable as soon as the legal impediment is removed, up to the net benefit that the adult or family receives from disposition of the property.
The REPAYMENT becomes PAYABLE as soon as the legal impediment is removed.
If the recipient disposes of the property when the legal impediment is removed, repayment is calculated by taking into account the net benefit obtained from disposition of the property. The amount repayable cannot exceed the lesser amount between the net benefit from disposition of the property and the amount of assistance which could not be granted should the property have been considered in the calculation of the benefit.
If the recipient has not yet disposed of the property when the legal impediment is removed, it is included under the usual rules. To establish the amount of the claim, we take into account the lesser value between the market value of the property on the date of the removal of the legal impediment as established and the amount which would not have been granted if the property had been considered monthly in the calculation of the benefit. If the property is a residence, the claim may not exceed the net value. (Refer to the example at the end of this item).
- the amount of benefits granted under the Act when a person or member of his or her family has been DECLARED INELIGIBLE for allowances or benefits under ANOTHER ACT because he or she has not taken steps to find paid employment, has not followed the instructions given for that purpose, has rejected employment without a valid reason or has abandoned or lost it through his or her fault, up to the amounts that would have been payable but for such a reason under this Act, and as soon as the ineligibility ceases.
The assistance paid may be reduced and becomes repayable when the ineligibility for other benefits ceases or the client no longer receives assistance, whichever occurs first.
However, assistance paid to an applicant who has DEFINITIVELY been DENIED EMPLOYMENT INSURANCE benefits is not repayable. Since the ineligibility is complete and permanent at that point, the section does not apply as it includes a component of limited ineligibility not corresponding to that imposed by the Employment Insurance Act.
- the amount of benefits granted under the Act when allowances or BENEFITS GRANTED to a person or family under ANOTHER ACT have been REDUCED to compensate for an overpayment or as a penalty, up to the amount of such reductions, and as soon as the reductions cease.
Assistance paid to compensate for DEDUCTIONS made from benefits from an agency of the GOVERNMENT OF QUEBEC or of ANOTHER GOVERNMENT to compensate for a penalty or overpayment must be repaid. The assistance becomes repayable when the reductions cease or when the client no longer receives assistance, whichever occurs first.
However, this paragraph does not apply to the case of an AMOUNT WITHHELD BY A PRIVATE AGENCY, such as an insurance company which makes a weekly deduction on account of a debt contracted with the company. For this section to be applicable it is essential that the compensation be made by an agency governed by Quebec or other legislation.
- the amount of benefits received after an event giving a person or dependent child the ability to exercise a right, whether or not a personal right, up to the value of the RIGHT REALIZED as soon as it is realized.
The fact that a person or family is receiving benefits at the time of the event does not affect the principle of repayment. It does not matter that the right is the cause of the person relying on assistance or that it arose while he or she was receiving assistance. The anticipated right may be in the nature of a lump sum or a series of accumulated payments.
It must be possible to exercise the right through judicial means or by a claim made to a person or agency.
INTEREST
INTEREST paid by the debtor is an integral part of the right that is realized or the amounts received and is accounted for in the same fashion as the capital that is received, except in cases which are expressly exempted by another act, such as that of the SAAQ.
- if the amount realized is in the form of accumulated payments, the interest is allocated equally to the number of months covered by the realization and added to the accountable monthly payment;
- if the amount realized is in the form of a lump sum, the interest is added to the capital received and is accounted for in the same fashion as the capital that is realized.
ASSISTANCE paid pending the exercise of a right is NOT REPAYABLE:
When the right is realized and the assistance was paid pending an INHERITANCE, with or without a will;
Income, property and liquid assets arising from the inheritance are counted when they are received.
When the right realized is:
- COMPENSATION from the SAAQ for the permanent loss of physical or mental abilities following an automobile accident;
- COMPENSATION from the CSST for the permanent loss of physical or mental abilities following a work-related accident or occupational illness;
- COMPENSATION other than that mentioned above for NON‑PECUNIARY DAMAGE (non-monetary loss) received for the loss of physical or mental abilities.
Usually this will be a lump sum resulting from a civil action. However, it may also involve an amount from accumulated annuities if the latter are intended primarily to compensate for a loss of some type of ability. This is true in particular with certain annuities paid by the CSST pursuant to the Act respecting Assistance for Victims of Crime (AAVC) or the Act to Promote Civism. The following table indicates the annuities paid under legislation and shows whether assistance received while waiting for such annuities is repayable.
|
TYPE OF ANNUITY |
PURPOSE |
METHOD OF PAYMENT |
ASSISTANCE PAID PENDING REALIZATION |
|
Total temporary disability (TTD), total medical disability (TMD) or total rehabilitation disability (TRD) |
Compensates for income loss if unable to work |
Biweekly |
Repayable |
|
Temporary partial disability (TPD) |
Compensates for temporary disability of person able to work |
Monthly |
Not repayable |
|
Permanent partial disability (PPD) |
Compensates for permanent disability |
Monthly |
Not repayable |
|
Permanent total disability (PTD)
|
Compensates for permanent disability |
Monthly |
Not repayable |
Non reimbursable money received is calculated as liquid assets at the time it is received.
Note: Once the right has been realized, annuity payments made subsequently are treated as
accountable earnings or benefits.
- Benefits resulting from a waiver
The decision to waive a requirement to grant benefits can, in some cases, be conditional to a commitment or agreement on behalf of the recipient to reimburse the benefits in the occurrence of certain events (sale of property making the recipient ineligible for assistance, an organization’s regulation, etc.). The person who received benefits under these terms is then under the obligation to reimburse the benefits should this condition be met (see section 18.2.4).
- Assistance paid to a sponsored person whose sponsor has defaulted
As of April 1, 1996, sponsors must repay the amounts received by their sponsored person or family as if they themselves had received the benefits. This rule applies to undertakings signed with the governments of Quebec and Canada.
When the sponsored person is an independent adult or all the members of the family are sponsored, all assistance must be repaid. However, where benefits are paid to households composed of both sponsored and non-sponsored persons, only a fair share of the benefits attributable to the sponsored persons is claimed. A special scale of needs has been developed for such cases to identify the share attributable to the adults in the family; the share attributable to the children corresponds to various applicable increases that take into account the family allowances paid by the RRQ.
The Centre des garants défaillants (CGD) has full responsibility for establishing claims and recovering the monies. All the rules governing the recovery of monies (prescription, joint and several responsibility) apply.
However, where financial assistance has been received unduly (eg: unreported work, change in family composition) because of the client, the councillor in charge of the file at the Income Security is responsible for establishing the claim in respect of the sponsored client.
Decisions regarding claims in respect of sponsors are subject to review and appeal before the revision and before the Appeal Committee.
PARTICULARITIES
Beneficiaries will not reimburse to the Income Security:
1. Claims of less than $1.00
No claims regarding OVERPAYMENTS or RIGHTS REALIZED other than for support payments will be made on amounts of less than $1.00. No claims for less than $1.00 will be made regarding specific special benefits or the defaulting sponsors system either.
2. Quebec Sales Tax (QST) Adjustment
Since March 2003 and June 2011, the Income Security may not claim the adjustment paid to serve as the payment in advance of the Quebec Sales Tax (QST) tax credit when a claim covers a period during which the Income Security notified the Ministère du revenu du Québec (MRQ) that the QST adjustment was paid on the Relevé 5 slip.
PERSON REQUIRED TO REPAY
The following are required to repay any overpayments:
- persons who have employment and state that they have no income (misrepresentation);
- persons who have employment and declare it but do not report the income from the employment correctly;
- persons who have any other income that is not declared or is declared incorrectly, whether that income is from a public plan (such as employment insurance) or a private source;
- clients whose civil status is false (marital status) or whose status changes without it being declared;
- clients who do not declare decreases in their family responsibilities (placements or departures) or changes in the status of their dependants (such as school dropouts);
- clients who have property or receive property but fail to declare it or declare it incorrectly.
CLAIMS FOR MISREPRESENTATIONS CREATING A SUBSEQUENT OFFENCE
A subsequent offence is a debt created following more than one misrepresentation.
The subsequent offence must have taken place in April 1997, that is, for the assistance granted for the month of May 1997 and thereafter.
Therefore, a subsequent offence occurred:
- when a claim because of a misrepresentation occurred for a period prior to May 1997;
and
- when another claim because of a misrepresentation occurred for one or more periods after April 1997;
or
- when two claims occurred for periods after April 1997.
Also the concept of subsequent offence applies:
- When a claim for misrepresentation was already served to the client and that, for at least a second time, he or she omits to declare an information or to send a document containing such information “so as to” render him/herself and family eligible to assistance or receive benefits higher than those he or she should have been entitled to.
AND, generally
- When it concerns separate verifications or investigations, i.e. that the motives involve separate and independent events.
AND
- When the claims concerned cover different periods, i.e. that they are not consecutive or overlapping.
N.B. The subsequent claim remains on the file, even when the claim has been fully paid.
PRECISIONS AND SPECIFITIES ON THE CONCEPT OF SUBSEQUENT OFFENCE
1. Same reasons and same periods or consecutive periods
Generally, when the reasons for claims are similar and that the periods are the same or consecutive, this is not considered as a subsequent offence. However, if verifications or investigations could not allow to detect the presence of another advantage and that the client has the opportunity to declare the situation, this shall be deemed as a subsequent offence.
Example :
After having been denounced, a claim of FDE nature is made on the grounds of work income not declared. Several months later, the councillor finds out, following an exchange of information with the MRQ, that the client was working for two different employers during the same periods.
Although these are consecutive periods and identical reasons, we deem that the client omitted for a second time to declare his or her situation. This is then deemed as a subsequent offence.
2. Different reasons and same periods or consecutive periods
Although the periods are the same or consecutive, the reasons were different, this usually means a subsequent offence. It is however important to make sure that the reasons are not inter-related so that normal verifications would have allow to make a single claim.
Example
Following an inconsistency from MRQ, the councillor establishes a first claim for work income covering the months of February to November of the previous year. The client being not employed any longer, a second claim is issued for employment insurance income. Since the councillor already possessed all the information at the time of establishment of the first claim, all this information allowing to establish a single claim for work and employment assistance income, the second claim should not be considered as a subsequent offence.
Although periods are the same or consecutive, reasons were different, this generally means a subsequent offence. It is however important to make sure that the reasons are not inter-related so that normal verifications could have allowed to establish a single claim.
3. Same reasons and different on non-contiguous periods
When the reasons are the same and that the periods are different, this is usually a subsequent offence. It is important however to verify if a single claim should have been made.
Did the councillor have the complete information or the possibility to obtain it?
Did the client omit to declare his or her situation more than once?
Example
The councillor is notified by an exchange of information (ASEQ) in June 2002 that the client owned liquid assets in excess from January 1, 2001 to December 31, 2001. The claim is made in August 2002.
Another exchange of information in June 2003 inform s us again of liquid assets in excess from the months of March 2002 to November 2002. A second claim is made in July 2003.
When the first claim was established in August 2002, the councillor should have verified the liquid assets owned between the months of January and August 2002. If this has been verified, a single claim would have been established and the assistance reduced or cancelled in September 2002. Considering that liquid assets were not in excess continuously, the presence of two periods (pics) is considered to establish the claim . However, this should not be considered as a subsequent offence.
Furthermore, if the individual owned liquid assets in various vehicles or investments or in financial institutions (investment, savings bonds, safe-deposit box...) which were difficult to find during the usual verifications, we consider this is a subsequent offence.
4. Different reasons and different or non-contiguous periods
When the reasons are different and so are the periods, the concept of subsequent offence applies. It is however important to make the distinction between this rule and the situations where the councillor establishes a single claim because he or she has all the information to do so.
Example
Following a denunciation, the investigator has evidence that a client received work income from January 2003 to June 2003, that his or her spouse received SAAQ benefits from September 2003 to December 2003 and that his family owned a summer cottage evaluated at $30 000 since February 2004. Although the periods are different and so are the reasons, the councillor will make a single claim since he or she has all the information to do so.
SURPLUS LIQUID ASSETS
When employment-assistance benefits are received and the client is not entitled to receive them because of surplus liquid assets, the amount to be claimed is established by applying the following procedure:
- group the consecutive months for which there is a surplus of liquid assets; each group constitutes a block. Each block is considered separately in establishing the amount to be claimed;
- calculate the surplus liquid assets by applying the basic exclusions according to the family composition and the presence or absence of a severely limited capacity for employment;
- For each period, subtract from the liquid assets an amount equivalent to the income, earnings and benefits that served to calculate the benefits.
- Subtract from the liquid assets, the liquid assets that are excluded pursuant to the regulation.
- compare the surplus liquid assets with the assistance actually received to determine the amount of overpayment; only up to the assistance actually received can be claimed;
- identify the largest amount of surplus per block; this amount is the maximum that can be claimed for this block;
- determine the actual amount to be claimed, namely the amount of overpayment up to the largest amount of surplus identified earlier.