Welfare Eligibility (21:III)

This section deals with eligibility for income assistance, PPMB assistance, and disability assistance, but not for hardship. Please see Section V: Hardship for information on eligibility for hardship assistance.

A. Application Process

Applicants for income assistance, PPMB assistance, and disability assistance must comply with the application process set out in s 4 of the EAR and s 4 of the EAPWDR, and are subject to the numerous eligibility requirements set out below.

B. Obligation to Provide Information to MSDSI

MSDSI staff are empowered (by s 10 of the EAA and s 10 of the EAPWDA) to require welfare applicants and recipients to demonstrate their eligibility by providing relevant information. MSDSI employees are also empowered to independently verify that information.

At the same time, welfare recipients are obliged to respond to enquiries by MSDSI, submit reports to MSDSI as requested, and alert MSDSI to any changes in their circumstances that may affect their eligibility (s 11 of EAA and s 11 of EAPWDA). Section 33(1) of the EAR requires that by the fifth day of each calendar month a recipient of income assistance or PPMB assistance must submit a report (in a prescribed form) giving relevant information about eligibility. Meanwhile, s 29 of the EAPWDR requires that those on disability assistance submit the form only when there is a change in their circumstances that may affect their eligibility for benefits (e.g. change in their assets, income, or familysituation).

If an applicant fails to comply with MSDSI’s requirements to provide accurate information on factors affecting eligibility, this may result in the suspension or reduction of benefits.

Note that a “trusted third party” must witness many MSDSI forms. This can be a welfare worker (EAW) or other MSDSI staff. If an applicant cannot get to a Ministry office in person, the Ministry may accept a signature from another government worker or a prescribed professional (doctor, nurse, nurse practitioner, social worker, psychologist, chiropractor, or physical/occupational therapist).

To be eligible for income assistance, PPMB assistance, or disability assistance, applicants must show that they meet the:

• asset limits;
• income limits;
• citizenship requirements; and
• age requirements.

To be eligible, applicants must also:

• pursue all other forms of support;
• assign any spousal support rights to MSDSI (effective May 1, 2015, the assignment of child support rights to MSDSI is voluntary).
• have been financially independent for two years in the past (with some exceptions as discussed below);
• complete a three or five-week work search (with some exceptions as discussed below) and;
• comply with employment-related obligations and an employment plan (with some exceptions, discussed below).

Those wishing to receive disability assistance or PPMB assistance must first show they qualify for PPMB or PWD status under the relevant sections of the legislation (s 2 of the EAA for PPMB status, and s 2 of the EAPWDA for PWD status).

The above eligibility criteria will be discussed briefly below. Certain applicants who do not meet the eligibility criteria for income assistance, PPMB assistance, or disability assistance may still be eligible for hardship assistance. See Part 4 of EAR and Part 4 of EAPWDR for details.

C. Asset Limits

In order to be eligible for income assistance, PPMB assistance, or disability assistance, applicants must exhaust their assets. As noted above, welfare is a “payer of last resort”. Accordingly, the EAR (ss 11-13) and the EAPWDR (ss 10-12) set out limits on which assets a person can possess and still remain eligible for income assistance, PPMB assistance, or disability assistance.

Asset limits vary depending on the size of the family unit receiving welfare and the type of welfare the family unit is receiving.

Read the EAR (ss 1 and 11-13) and the EAPWDR (ss 1 and 10-12) carefully to identify the asset criteria. and note in particular the definitions of “asset”, which is set out in s 1 of the EAR and EAPWDR.

The following table summarizes the asset limits for different family sizes applying for or receiving different forms of welfare. A more detailed table is available at http://www.eia.gov.bc.ca/mhr/assets.htm.

Applicant	Maximum Allowable Assets
Single person on income assistance or PPMB	$2 000
Family (more than one person) on income assistance or PPMB	$4 000
Single person on, or applying for, disability assistance	$5 000
Family (more than one person) on, or applying for, disability assistance	$10 000

1. Exempt Assets

Students should review s 10(1) of EAR and s 10(1) of EAPWDR in detail to see if any of a person’s particular assets are exempt, i.e. do not count toward their asset limit. Some key exempt assets are:

• clothing and necessary household equipment;
• vehicles (limit one per household and only if used for day-to-day transportation needs. Note that for those on income assistance and PPMB there are additional limits set out in s 11(1)(b) of the EAR). Note: If someone is applying for or receiving income assistance or PPMB assistance, and MSDSI expects the individual to look for and accept work, he or she can have a car with up to $10 000 equity in it that is used for daily transportation. However, the Ministry will count any other vehicles owned towards the family unit’s asset limits. (This does not apply to persons applying for or receiving disability assistance, whose primary vehicle is exempt with no limit on the amount of equity in it);
• a family unit's place of residence;
• a child tax benefit or GST credit under the Income Tax Act (Canada);
• A BC early childhood tax benefit;
• a sales tax credit under the Income Tax Act (British Columbia);
• a registered disability savings plan or “RDSP” (see http://www.rdsp.com for more information); an uncashed life insurance policy with a cash surrender value of $1 500 or less; and
• business tools;

2. Asset Development Accounts are Exempt Assets

Section 12 of the EAR and s 11 of the EAPWDR provide that the MSDSI may approve savings accounts for the purpose of “future self-sufficiency”, and that these accounts will be exempt assets.

3. Disability Trusts are Exempt Assets

Under s 13 of the EAR and s 12 of the EAPWDR, assets of up to $200 000 can be held in a non-discretionary trust for a person with PWD status (or an applicant for PWD status, or for another individual with disabilities in certain circumstances) without disqualifying the person from income assistance or disability assistance. There is no limit on the amount that may be held in a discretionary trust.

D. Income Limits

In order to be eligible for income assistance, PPMB assistance, or disability assistance, applicants must exhaust all other sources of income to support themselves and their dependants, except for income specifically exempted by legislation or policy.

The net income limits for welfare recipients are set out in s 11 of the EAR and s 9 of the EAPWDR. Schedule B in both regulations sets out the manner in which a person’s net income is calculated for the purpose of welfare eligibility.

1. Types of Income Relevant to Income Limits

The MSDSI distinguishes between earned and unearned income for the purpose of the net income calculation.

EARNED INCOME. EAR, s 1 and EAPWDR, s 1 define “earned income” as:

• any money or value received in exchange for work or the provision of a service;
• pension plan contributions that are refunded because of insufficient contribution to create a pension;
• money or value received from providing room and board at a person’s place of residence; or
• money or value received from renting rooms that are common to and part of a person’s place of residence.

UNEARNED INCOME. EAR, s 1 and EAPWDR, s 1 define “unearned income” as any income that is not earned income. They give a non-exhaustive list of examples including:

• any type of CPP benefits;
• WCB benefits and other disability payments and pensions;
• inheritances;
• rental income from land or property;
• education or training allowances, grants, loans, bursaries, and scholarships;
• winnings from lotteries and other forms of gambling;
• criminal injury compensation or crime victim compensation;
• “any other financial awards or compensation”; and
• funds received from a sponsor under a sponsorship agreement pursuant to the Immigration and Refugee Protection Act.

2. Deductions and Exemptions from Income

Earned and unearned income is deducted dollar-for-dollar from a recipient’s monthly cheque, subject to a list of deductions and exemptions set out in ss 1-9 of Schedule B of EAR and in ss 1-9 of Schedule B of EAPWDR. Students should review these sections carefully to determine if the client’s income is exempt or subject to deductions.

Money withdrawn from a disability trust for certain purposes is also exempt as income. See s 13 of the EAR, and s 12 of the EAPWDR. Also see s 7(1)(d) of Schedule B to the EAR and the EAPWDR.

Money from structured settlement annuity payments that is used for certain purposes is also exempt as income. See Schedule B, s 7 of the EAR and EAPWDR for details.

The following are some examples of income exempted by Schedule B of the EAR and EAPWDR. This list is far from exhaustive. Note that an applicant or recipient of welfare benefits must report their receipt of all income to MSDSI, even if it is exempt.

• a. Income tax refunds;
• b. Universal child care benefits;
• c. Canada child tax benefits;
• d. Withdrawals from a Registered Disability Savings Plan;
• e. Child support payments (as of Sept 1, 2015; before Sept 1 2015, payments were considered unearned income and deducted dollar-for-dollar)
• f. CPP orphan’s benefit (as of Sept 1, 2015)
• g. A one-time gift, if it does not make the recipient exceed their asset exemption level; and
• h. Some portion of WCB Temporary Wage Loss Replacement Payments issued under ss 29 and 30 of the Workers Compensation Act, if:
  • at least one person in the family unit is has the PWD designation, and either
    • the family unit has received PWD benefits for at least one month or
    • the family unit has received PWD benefits in the past.

Students must see ss 1-9 of Schedule B of the EAR and ss 1-9 of Schedule B of EAPWDR for a complete list of income exemptions.

3. Earnings Exemptions

Recipients of income assistance, PPMB assistance, and disability assistance all have an earnings exemption. The earnings exemption for income assistance and PPMB assistance is monthly; As of January 1, 2015, the earnings exemption for recipients of disability assistance is calculated per year (i.e. annual earnings exemption). The exemptions apply to all earned income, including wages from employment, money received from providing room, and board at a person’s place of residence, or money received from renting rooms that are common to the person’s place of residence.

For recipients of income assistance and PPMB assistance, there is a one month waiting period to claim any earnings exemption. This means that a family unit cannot claim an earnings exemption for the first month in which they initially apply for and become eligible for income assistance or PPMB assistance, but can claim an earnings exemption for any subsequent months.

For recipients of disability assistance, there is a one-month waiting period to claim an earnings exemption unless:

• A member of the family unit has received disability benefits at any point in the past OR
• A member of the family unit received income assistance or PPMB assistance in the month before the family unit became eligible for disability assistance.

Current earnings exemptions are as follows (NOTE: Some of these amounts are scheduled to be increased Sept 1 2015. Check http://www.eia.gov.bc.ca/factsheets/2006/Earnings_Exemption.htm for current exemptions):

• a. Family unit receiving income assistance: $200/month
• b. ($400/month after Sept 1, 2015); Exception: a single parent of a child or foster child who has a disability that prevents the parent from working more than 30 hours per week has an earnings exemption of $300/month while receiving income assistance ($500/month after Sep 1, 2015)
• c.Family unit receiving PPMB assistance: $500/month
• d. Family unit receiving disability assistance:
  • $9600 per calendar year for a single adult (or single parent) with the PWD designation; $12 000 for with two adults where one adult has the PWD designation, and the other adult does not.
  • $19,200 per calendar year for families where two adults have the PWD designation.

If a child is under 19 and in school full-time, a family unit can still keep the entirety of that child’s income without it affecting their benefits (although the child’s income must still be reported to MSDSI). If a child is under 19 and not in school full time, then any income the child earns counts toward the family unit’s earnings exemption.

For more information on earnings exemptions, see EAPWDR schedule B, s 3, and EAR, schedule B, s 3.

It is very important to note that all earned income must be reported to MSDSI, even if it is below a person’s earnings exemption.