(a) Debtor receives benefits from LAST RESORT FINANCIAL ASSISTANCE
The Income Security makes a withholding from benefit granted to a debtor-client or to his or her family based on four different standards for determining amounts:
- $22 a month in the case of a student’s spouse, a minor adult admitted to shelter with a dependent child, or an independent adult admitted to shelter or placed in the care of an intermediate resource or foster home, or an adult required to reside in a half‑way house;
- $112 a month when $ when the recoverable amount is due following a false statement.
- $224 per month when the recoverable amount is due following more than one false statement. For the notion of subsequent offence to apply to the file, the second false statement must affect an assistance period dating from after April 1997.
- $56 a month in other situations.
NOTE: To apply the Regulation as of October 1, 2005, the amount of the withholding applied on an employment insurance benefit will not exceed half of the amount the recipient is entitled to, regardless of the nature of the debt.
Example
A recipient receives a monthly benefit of $100 and a claim, (new debt type) is in his or her file.
The withholding will not exceed 50% of the amount of the benefit, i.e. $50 per month where the amount of the withholding amounts usually to $56 per month.
In the case of a JOINT AND SEVERAL DEBT, the Income Security withholds the full amount of the withholding from each of the co‑debtors who no longer form a couple when they are both receiving assistance.
The amount of the withholding may be higher if the debtor requests this.
Withholdings from assistance benefits:
- can only be made when a recovery certificate has been issued;
- are made from the month following issuance of the certificate;
- can also be made from retroactive payments for periods prior to delivery of the certificate, the certificate having effectively been issued on the date of the payments;
- interrupts prescription.
NOTE: Withholdings for the MONTH of the APPLICATION for assistance:
Withholdings may be made from the total amount owing to the client in respect of the month of the application and the following month, on one condition: at least one certificate has been issued in the case.
(b) Debtor receives benefits OF INCOME SUPPORT FINANCIAL ASSISTANCE
The employment assistance benefits and additional periodical or one-time expenses paid without right are reimbursable.
However, withholdings prescribed by regulation from the benefits paid may only be withheld from amounts paid as employment assistance benefits.
The Income Security makes a withholding from a benefit issued to a client according to three different standards with respect to amounts.
The amounts correspond to:
- $26 per week when a person has voluntarily failed to declare an information, made a declaration containing a false information or transmitted a document containing such an information in order to make him/herself and his/her family eligible to assistance or to receive benefits exceeding those he/she should have been paid.
- $52 per week, when a person has voluntarily, at least for the second time (relapse), failed to declare an information, made a declaration containing a false information* or transmitted a document containing such an information in order to make him/herself and his/her family eligible to assistance or to receive benefits exceeding those he/she should have been paid;
- $13 per week in any other situation.
This withholding interrupts the prescription.
REPEAT OFFENCE
The overpayment recovery rules do not apply in cases where amounts are withheld after more than one false declaration has been made.
The amount of $224 per month, when payments are on a monthly schedule, or $52 per week, when payments are on a weekly schedule, is withheld only if two or more claims were made as a result of false declarations under measures and programs created pursuant to the application of the framework policy.
DEBTS PRIOR TO SEPTEMBER 1, 1981 - VESTED RIGHTS
Withholdings may be made from benefits by the Income Security to recover any debt, even debts prior to September 1, 1981, unless the debtor has a vested right.
In the same way as any other debt, a recovery certificate must have been issued before the Income Security can withhold payments of last resort financial assistance.
FALSE STATEMENT
A false statement is when a person voluntarily omits to declare information, makes a statement that contains false information or transm its a document containing such information to make this person and his or her family eligible to assistance or to receive higher benefits to those they are paid, contrary to what a reasonable and responsible adult would have done under similar circumstances.
PERSONS PROVIDING FALSE INFORMATION ARE:
- those holding employment who state that they have no income;
- those holding employment who report it but misrepresent the income they receive or fail to report it;
- persons in receipt of any other unreported or misrepresented income, whether it comes from a public plan (such as employment insurance) or a private source;
- a client who has property or receives it but fails to report it or misrepresents it;
- a person receiving assistance under various aliases;
- a person taking assistance not intended for him or her;
- a person obtaining assistance again by falsely stating he or she has not received it;
- clients who make false statements regarding shared accommodation;
- clients who make false statements regarding parental contributions;
- clients who make false statements regarding the makeup of their family.
Note : The client is regarded as having correctly declared his or her situation when he or she notifies the Income Security in the thirty days, unless he or she can prove that he or she was unable to act.