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RESP Government Sponsored Programs FAQ's
Credential is pleased to offer the Basic and Additional Canada Educational Savings Grant (CESG), Canada Learning Bond (CLB), and Alberta Centennial Education Savings Plan (ACES).
- Alberta Centennial Education Savings Plan (ACES): Children born, or adopted on or after January 1, 2005 will qualify for the Alberta grant. For the year of birth or adoption, the CES Program will pay into an RESP, on behalf of the Alberta Government, an Alberta grant in the amount of $500. Three additional grants of $100 will be paid at ages 8, 11, and 14 on the condition that the beneficiary is enrolled in an Alberta school. Application must be made within two years after the child’s date of birth.
- Additional Canadian Education Savings Grant (ECESG): The additional ECESG is payable on the first $500 contributed, on or after January 1, 2005, in respect of beneficiaries from whom a Children’s Special Allowance is paid or who are from families with an income under $78,130.
An additional CESG rate of 10% is available for beneficiaries who are dependents of an individual primary caregiver (PCG) whose family net income is between $39,066 and $78,130*, OR 20% is available for beneficiaries who are dependents of an individual PCG whose family net income is $39,065* or less, or beneficiaries who are dependents of a public PCG receiving payments under the Children's Special Allowances Act. *based on 2010 income brackets.
- Canada Learning Bond (CLB): All children born on or after January 1, 2004, who are under the care of a Public Trustee and for whom a Children’s Special Allowance is paid, or for whom the family is eligible to receive the National Child Benefit Supplement (NCBS), will be able to receive the CLB. An initial $500 will be paid directly into the RESP and $100 for any subsequent year of eligibility up to and including the beneficiary’s 15th year totaling to a possibility of $2000.
CLB accumulates for each year of eligibility, regardless of whether an RESP has been opened in the child’s name or not. Once the RESP is opened and the CLB requested, all accumulated CLB can be paid to the eligible beneficiary. Accumulated CLB must be requested before the beneficiary’s 21st birthday.
Important Note: For ECESG and CLB to be eligible in a family plan, beneficiaries MUST be siblings. ECESG and CLB will NOT be paid out on a Family RESP if the beneficiaries on the account are cousins; that is, while they are blood related, their parents are not the same.
There are two types of primary caregivers.
- Individual: Person who receives the Canada Child Tax Benefit for a child. This may also include the National Child Benefit Supplement.
- Public: An agency or institution eligible to receive allowances under the Children's Special Allowances Act that maintain the child.
The application forms for the government sponsored programs are:
- Basic and Additional Canada Education Savings Grant and Canada Learning Bond Application (HRSDC SDE 0071)
- Basic and Additional Canada Education Savings Grant and Canada Learning Bond Application – Subscribers(s) Only (HRSDC SDE 0073)
- Application for Alberta Centennial Education Savings Grant
All applicable forms are included in the Open an Account Offline RESP account opening process.
Yes, just follow the same procedure outlined in the question above.
- HRSDC SDE 0071: Used when the form is completed by the subscriber, who is NOT also the custodial parent/legal guardian and primary caregiver
- HRSDC SDE 0073: Used when the subscriber is the custodial parent/legal guardian and primary caregiver.
As the amount of the ECESG or CLB is dependent on the subscriber’s tax information, we do not have access to this information to determine eligibility. For questions relating to the amount of your grant, please contact CESG at 1.888.276.3632.
To apply for the new RESP incentives, CLB and the ECESG, a new account must be opened for siblings only. The two accounts cannot be merged together.
HRDC anticipates that initial payments of the CLB and the ECESG grants will be received one or two months after applying. Future payments will be made at the beginning of the year, or the month after the eligible beneficiary’s birth date.
Yes. Any of the ECESG, CLB or ACES can be clawed back.
If the PCG income information changes due to a reassessment of income level by CRA, HRDSC will automatically initiate an adjustment of the additional CESG or CLB.
Visit the following websites for more information: