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RESPs

Are Canada Education Savings Program Grants and Canada Learning Bonds being offered by Credential?

Credential is pleased to offer the Basic and Additional Canada Educational Savings Grant (CESG), British Columbia Training and Education Savings Grant (BCTESG), Alberta Centennial Education Savings Plan (ACES), and Canada Learning Bond (CLB).

  • Canadian Education Savings Grant (CESG):
    • The Basic CESG is a payment of 20% on the first $2,500 of annual RESP contributions made on behalf of an eligible beneficiary, up until the end of the calendar year in which he or she turns 17.
    • The Additional CESG is a payment (over and above the Basic CESG) of either 10% or 20% on the first $500 of annual RESP contributions made on or after January 1, 2005, on behalf of an eligible beneficiary, up until the end of the calendar year in which the beneficiary turns 17 years old. The amount of Additional CESG that a child can receive depends on the adjusted family net income of the child’s primary caregiver.
  • British Columbia Training and Education Savings Grant (BCTESG): $1,200 grant paid into an RESP of an eligible child born in 2006 or later. It is available to children who are residents in British Columbia with a custodial parent/legal guardian who is also a resident of British Columbia at the time the application form is submitted to the RESP provider. A subscriber may be able to apply for the grant in respect of an eligible child no earlier than the beneficiary’s 6th birthday and no later than the day before the beneficiary’s 9th birthday.
  • 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.
  • 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 CESG and CLB to be eligible in a family plan, beneficiaries MUST be siblings. CESG 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.

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What is a primary caregiver (PCG)?

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.
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What forms are required for government sponsored programs?

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
    (HRSDC SDE 0093) Subscriber(s) only
  • Application for Alberta Centennial Education Savings Grant

All applicable forms are included in the Open an Account Offline RESP account opening process.

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Can I apply for government sponsored programs if I have an existing RESP and have not applied for these programs in the past?

Yes, just follow the same procedure outlined in the question above.

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What’s the difference between form HRSDC SDE 0071 and HRSDC SDE 0093?

  • 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 0093: Used when the subscriber is the custodial parent/legal guardian and primary caregiver.
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Why didn’t I get the amount of grant I was expecting?

As the amount of the CESG 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 1.888.276.363.

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What do we do with an existing family plan with non-sibling beneficiaries?

To apply for the new RESP incentives, CLB and the CESG, a new account must be opened for siblings only. The two accounts cannot be merged together.

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When can I expect the Additional CESG, Canada Learning Bond (CLB) and Alberta provincial grant (ACES)?

Human Resources Development Canada (HRDC) anticipates that initial payments of the CLB and the CESG 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.

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Can the CESG, BCTESG, ACES or CLB be “clawed back”?

Yes. Any of the CESG, BCTESG, ACES or CLB can be clawed back.

If the primary caregiver income information changes due to a reassessment of income level by the CRA, Human Resources Development Canada will automatically initiate an adjustment of the additional CESG or CLB.

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Where do I find more information about these government sponsored programs?

Visit the following websites for more information:

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