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Employment and Income Assistance Administrative Manual

Section 15 - Unearned Income

15.1.1 UNEARNED INCOME

"Unearned Income" is defined as all income received by an applicant or participant except wages and net revenue from farm or business operations and hence is totally available for current maintenance. Certain exemptions are defined in Section 15.2.1.

15.1.2 COMMON SOURCES OF UNEARNED INCOME

Settlements or Agreements

Settlements or agreements include monies received under terms of maintenance orders, parents' maintenance orders, separation orders, court orders, divorce decrees, inheritance, life insurance, accident claims, net amount of Employment Insurance, net amount of Employment and Training allowances. Settlements or agreements may produce lump sum payments as well as ongoing unearned income.

Pensions

Examples of pension benefits are:
Canada Pension Plan, Old Age Security, Spouse's Allowance, Guaranteed Income Supplement, Department of Veteran's Affairs pensions and allowances, Criminal Injuries Compensation, Workers Compensation, Blind and Persons with Disabilities Allowance, funds assisting persons with mental disabilities, private pension plan benefits and other retirement, disability or survivors' payments.

"Pension" implies an ongoing source of income. In some circumstances, arrears or adjustment payments may be received in a lump sum.

Income from Assets

Revenue from real or personal property includes proceeds from the sale, transfer or investment of assets. Unearned income from assets may be received in a lump sum or as ongoing income.

15.2.1 UNEARNED INCOME TO BE EXEMPTED FROM RESOURCES

In accordance with section 8(1)(b) of the Regulation, income from the following sources may be exempted from calculations of financial resources available for current maintenance:

  1. Foster Home Maintenance Payments as per section 8(1)(b)(ii);
  2. Canada Child Tax Benefit, including any amount received under the National Child Benefit Supplement or the Child Disability Benefit;
  3. Tax Credits as per sections 8(1)(b)(i), (iii), (vii) and (xviii) of the Regulation;
  4. Start-up and Operating Grants for providers of family child care under the Manitoba Child Care Program as per section 8(1)(b)(iv).

NOTE For exemptions and treatment of earned income see section 16.

15.2.2 TREATMENT OF UNEARNED INCOME AT APPLICATION

In accordance with section 8(2.1) of the Regulation, funds from sources set out in section 8(1)(b) of the Regulation available at the time of application shall be considered financial resources, with amounts in excess of the liquid asset limits available for current maintenance.

15.2.3 TREATMENT OF UNEARNED INCOME AFTER ENROLLMENT

After enrolment, in accordance with section 8(2.2) and section 8(1)(b) of the Regulation, income received shall be exempt in the month in which it is received. Up to four months after receipt of the exempted income, funds may be allowed for the participant to expend monies in excess of the liquid asset provision. At the discretion of the director or designate, an extension up to one year may be granted. Once the exemption period has expired, income that remains unexpended is subject to the liquid asset limits set out in section 8(1)(a) of the Regulation.

15.2.4 DEFINITION OF FINAL AND ONGOING UNEARNED INCOME

At intake, the treatment of unearned income is determined by whether it is final or ongoing.

Final unearned income

Unearned income ended prior to the case effective date (CED). Any remaining resources are subject to the liquid asset provision.

Ongoing unearned income

Unearned income ceases after the CED. The unearned income is considered to be an available resource.

Subject to existing policy (see section 6.4.13 for "Effective Date of Assistance"), the CED is normally the date of application.

15.2.5 TREATMENT OF FINAL UNEARNED INCOME

At intake, when final unearned income is reported (i.e., ended prior to the CED), the income assistance entitlement in the month of application will be prorated from the CED (see section 6.4.13). The remaining resources from the final unearned income will be subject to the liquid asset provision.

For example:

Application September 16
Income assistance budget $1,000
Final unearned income, September 10
Income assistance entitlement upon enrolment:
September income assistance (prorated @ 50%) $500
Less:
Final unearned income remaining (subject to liquid asset provision) (amount exempt)
September income assistance entitlement $500

The full amount of assistance will be issued for the next month.

15.2.6 TREATMENT OF ONGOING UNEARNED INCOME

A. At intake

When ongoing unearned income is received (i.e., continues after the CED), the assistance entitlement in the month of application will be determined by prorating the income assistance budget, less the prorated unearned income (based on the previous month's unearned income), subject to the policy on effective date of assistance.

For example:

Application September 16
Income assistance budget $1,000
Ongoing unearned income continues @ $800. per month
Income assistance entitlement upon enrolment:
September income assistance (prorated @ 50%) $500
Less:
Ongoing unearned income (prorated @ 50%) -$400
(based on previous month, August $800.)
September income assistance entitlement $100
NOTE SAMIN will prorate the assistance and the unearned income.

B. During enrolment

While the unearned income is ongoing, the monthly income assistance entitlement will be determined by the income assistance budget less the unearned income (based on the previous month's unearned income).

For example:

Income assistance entitlement during a month(s) unearned income is received:
Monthly income assistance $1,000
Less:
Ongoing monthly unearned income -$800
(based on previous month, $800)
Income assistance entitlement while unearned income is ongoing $200

C. Additional assistance when ongoing unearned income decreases or ends

The income assistance budget is calculated monthly based on the previous month’s earnings and unearned income. In the month that a participant is no longer receiving unearned income, the current budget continues to be based on the previous month’s income. This may result in participants having an immediate need for funds that may exceed the amount for which they are eligible. In these situations, caseworkers may review the situation with their Community Social Service Supervisors or EIA Rural Program Managers, who may contact the Minister’s designated for further direction.

D. Unearned Income exceeds EIA budget resulting in an income overage

When a file is in income overage due to unearned income exclusively (not a combination of earned and unearned income) the file should be closed immediately. Section 16.3.7 contains information on the exit point policy that should be applied to cases with employment earnings. Eligibility for health only benefits should be determined in accordance with section 22.1.11. Should an individual re-apply for assistance in or following the month that their file was closed, an individual reassessment of circumstances should be done to determine if financial eligibility exists.

15.2.7 AGE OF MAJORITY ALLOWANCE

Funds are provided by Child and Family Services agencies to children leaving care at 18 years of age. The amount provided for each individual is at the discretion of the individual agencies.

Depending on the child's circumstances, funds may be designated to purchase goods or services, contribute to rental costs and/or may be a lump sum payment. Since these funds are intended to facilitate the young adult's transition to independent living and the monies may be available for three months prior to or one month, subsequent to the eighteenth birthday, it is anticipated that the monies will have been expended at the time of an income assistance application. Therefore, these monies would be considered either as an available resource or as an exempted item.

15.2.8 LUMP SUM PAYMENTS - LIQUID ASSET PROVISIONS

When certain types of unearned income are received as a lump sum, all or part may be regarded as an exempted liquid asset and therefore not available for current maintenance. Examples of such types of unearned income are:

  1. cash replacements for material assets lost and not to be replaced. Loss might be a result of sale, transfer, fire or theft;
  2. lump sum compensation for injury, disability, retirement or death, as long as the lump sum is not part of an ongoing stream of pension income. Funeral costs normally have first claim on items such as death benefits and life insurance, and so such lump sum payments received by survivors receiving income assistance should be reduced accordingly prior to applying provisions noted; and
  3. inheritances and windfalls not subject to some other facet of policy such as some parts of trust policy.

When lump sums of these kinds are received by an income assistance household, the following procedures shall apply:

  1. Determine whether or not the household is below its liquid asset exemption limit.
  2. If the household is below the limit, then include as much of the lump sum in the household's liquid assets as is possible without exceeding the liquid asset exemption level.
  3. Any amount of the lump sum that remains after applying the liquid asset exemption must be treated as completely available to reduce current assistance or to reduce an outstanding overpayment.

A lump sum payment received as an age of majority allowance from a child-caring agency should be assessed in accordance with the established policy detailed in section 15.2.7 entitled "Age of Majority Allowance".

Unearned income in lump sums, other than the kinds noted above, are not subject to whole or partial exclusion from available resources under liquid asset exemption provisions. These other sources of lump sums might be maintenance, training allowances, insurance for income lost and various kinds of ongoing private and public pensions such as the Canada Pension Plan.

15.2.9 DEEMED INCOME FROM TRANSFERRED OR ASSIGNED PROPERTY/WINDFALLS

Where, in the Director's opinion, property has been transferred or assigned for less than market value or liquid assets have been depleted to establish eligibility for Employment and Income Assistance (EIA), District Directors may deem an income that normally would have been earned by the asset if it had been invested. An inadequate return may be identified when property is sold for an amount that is clearly less than market value and for which it is reasonable to assume a greater return could have been realized. For example, if an applicant/participant owns property with a current market value of $20,000.00 but sells it for $10,000.00, and similar properties in the region are selling for $20,000.00, it is fair to assume that an inadequate return was realized.

The deeming of income applies as well to situations where participants dispose of liquid assets in order to retain or establish eligibility. An example of such a situation could be a participant who wins $10,000.00 and gives away $7,000.00 to a family member and keeps his or her allowable liquid asset of $3,000.00. In this case, the Director may consider the $7,000.00 as deemed income.

To establish the monthly rate of deemed unearned income that will be entered on the MUIN screen in SAMIN, the total deemed income must be multiplied by the current interest rate and then divided by 12 months. The current interest rate established is 4.45 per cent (effective January 2010).

15.3.1 INCOME-IN-KIND

Income-in-kind includes payment in goods (usually ongoing) for services rendered, and is considered 100% available as income. Such payments should be given a reasonable value and calculated as income at this value. Examples of income-in-kind would be provision of basic necessities (e.g., shelter, food and clothing).

15.3.2 INCOME FROM BENEVOLENT ORGANIZATIONS

Such unearned income should be taken into account in relation to the need for which it is designated.

15.3.3 CHILDREN OPERATING FAMILY FARM

If a child of the applicant or participant lives at home on a full or part-time basis and operates the farm mainly for his or her own gain, the farm should be considered as rented. The family's income for current maintenance should be considered to be 1/3 of the farm's gross revenue therefrom; or, he or she should be expected to supply the family with basic necessities and services of equal value.

In this situation, income from the farm operation should not be considered "earned" by the applicant or participant, or in any way subject to calculation under the farm formula or other net revenue calculations.

15.4.1 LEGISLATIVE AUTHORITY

Section 1 of The Employment and Income Assistance Act requires that calculations of the financial resources of the applicant or participant shall include "net income" from "real and personal property." This section of the manual details policies essential to calculating revenue from property.

15.4.2 ATTRIBUTING INCOME TO SHARED PROPERTY

In a case where a participant shares his or her own accommodation or real property with others not legally dependent, it is necessary to define the nature of the arrangement and calculate the appropriate income due to the participant.

In accordance with section 4(5) of the Regulation, where the applicant or participant or dependant of the applicant or participant refuses to charge appropriately for shared accommodation or real property use, the director or designate of EIA should estimate some minimum income as available to the applicant or participant.

15.4.3 INELIGIBLE CHILDREN LIVING AT HOME

Ineligible children living at home after their eighteenth birthday should be encouraged to seek vocational training, or pursue actively all possible means of self-support.

However, there is no legal authority for attributing income to a person if none actually exists. An income assistance family must not be subject to a deduction as per board and room income policy (see section 15.4.4 below) unless the child living at home has an income.

15.4.4 BOARD AND ROOM INCOME

Where the applicant or participant provides board and room to another person, gross board and room income must be declared and 30% of this income shall be considered available as net property revenue, or unearned income.

The remaining 70% of board and room income shall be exempted from all calculations of the applicant or participant's entitlement under sections 8(1) and 8(2) of the Regulation.

Board and room income is not to be assessed in the case of full-time students under 18 who continue to reside with their income assistance families unless the student's earnings are excessive or the family chooses to establish such a relationship.

15.4.5 INCOME FROM ROOMERS OR RENTAL OF PARTIALLY SELF-CONTAINED QUARTERS

Where the applicant or participant rents some partially self-contained portion of his or her residence to roomers or tenants, gross rental payments received must be declared and 90% of this income shall be considered available as Net Property Revenue, or unearned income.

The remaining 10% of such income shall be exempted from all calculations of the applicant's or participant's entitlement in accordance with sections 8(1) and 8(2) of the Regulation.

15.4.6 RENTAL INCOME FROM SELF-CONTAINED QUARTERS

Where the applicant or participant rents self-contained quarters or any other form of property for which maintenance costs are allowed in testing his or her eligibility for EIA, 100% of all income resulting shall be considered unearned and available for current maintenance.

15.4.7 NET REVENUE FROM EXCESS PROPERTY

Where a participant owns property in excess of his or her residential and such property is deemed a source of revenue, net income shall be calculated by deducting from the gross any mortgage payments, taxes and costs of essential upkeep requirement (see sections 14.1.1 to 14.1.5 for policies on real property).

It should be noted that in such cases all assistance granted beyond the first four months is subject to special case approval.

15.5.1 MAXIMUM CANADA PENSION PLAN (CPP) BENEFITS

 

2009

2010

Retirement Pension
$908.75
$934.17
Disability Benefits
Disability Pension

$1,105.99

$1,126.76
Disabled Contributor's Child's Benefit
$213.99
$214.85
Survivors' Benefits
Death Benefit

$2,500.00

$2,500.00
Surviving Spouse's Monthly Pension:
Under age 65
Age 65 and over

$506.38
$545.25

$516.57
$560.50
Orphan's Monthly Benefit
$213.99
$214.85
Where a beneficiary is entitled to less than maximum CPP benefit rates, individual income verifications must be obtained from appropriate CPP authorities.

15.5.2 MAXIMUM MONTHLY OAS/GIS BENEFITS

Status

April - June 2010

July - September 2010

OAS

GIS

TOTAL

OAS

GIS

TOTAL

Single Pensioner $516.96 $652.51 $1,169.47 $518.51 $654.47 $1,172.98
Married - Both Pensioners $516.96 $430.90

$947.86 each

$518.51 $432.19

$950.70 each

Married - One Pensioner. One Non-Pensioner $516.96 $652.51 $1,169.47 $518.51 $654.47 $1,172.98
Married - One Pensioner. One 60-64 Years $516.96 $430.90

$947.86 each

$518.51 $432.19

$950.70 each

Surviving Spouse (Extended SPA)     $1,050.68     $1,053.68

15.5.3 MAXIMUM WAR VETERANS ALLOWANCE RATES

Maximum Monthly Income Level

STATUS

April 1 - June 30, 2010

July 1 - Sept. 30, 2010

Single

$1,273.88

$1,277.70

Single Widow/Widower

$1,273.88

$1,277.70

Single Widow/Widower blind within
the meaning of The Blind Persons Act

$ 1,325.61

$ 1,329.59

Widow/Widower with one child

$1,937.68

$1,943.49

Married

$1,937.68

$1,943.49

Married and blind or whose spouse or common-law partner is blind

$1,989.23

$1,995.20

Additional for each dependent child

$221.00

$221.66

Each Orphan

$ 662.25

$ 664.24

Married - separated for health reasons

$2,547.76

$2,555.40

15.6.1 ASSIGNMENT OF UNEARNED INCOME - LEGISLATIVE AUTHORITY

Section 9(2) of the EIA Regulation requires participants to make reasonable efforts to obtain the maximum amount of compensation or benefits that may be available to them under another Act or program.

Temporary assistance may be provided while a participant is waiting to receive a benefit from another program. Section 9(3) provides the authority for the EIA program to request a participant to assign, to the Department, sufficient monies to recover the assistance that would not have been paid had the benefit been available immediately.

Section 9(4) provides the authority to deny, suspend, discontinue or reduce assistance should the participant not agree to the assignment.

15.6.2 POLICY

The process of assigning benefits reinforces participant's pursuit of benefits from other sources that may reduce or eliminate their dependence on assistance. When it is anticipated that it would reduce both the opportunity for duplicate payments and the need for recovery of overpayments, participants or their dependants may be requested to assign benefits to the Department.

The anticipated income must be assignable under another Act, agreement or program for the Department to recover funds. An assignment may only be requested for funds from another source that were to be paid for a period in which the person is receiving assistance. The most common types of benefits are Employment Insurance and Canada Pension Plan benefits.

When completing "Section C – Confirmation of Social Assistance" on the assignment of benefits form, staff are to include in the calculation the following amount which is equal to the estimated Pharmacare deductible:

  • Single general assistance cases or childless couples – the first $145.00 of drug expenses
  • Two adult families with any number of children – the first $100.00 of drug expenses
  • Single Disability – the first $215.00 of drug expenses
  • Single parents with any number of children – the first $140.00 of drug expenses.

A Pharmacare deductible must be claimed each calendar year and a full calendar year deductible is included in any part year calculations as Pharmacare does not prorate.

The balance of drug expenses in excess of the Pharmacare deductible paid by EIA are to be excluded from the calculation and not recovered.

All other health costs (dental and optical) are to be included in the calculation.

15.6.3 OBLIGATION TO PURSUE BENEFITS AVAILABLE UNDER OTHER ACTS OR PROGRAMS

Under section 9(2) of the Regulation, applicants must make reasonable efforts to obtain the maximum amount of benefits available to them under other Acts or programs, including the National Child Benefit Supplement (NCBS), Canada Pension Plan (CPP) Benefits, and Employment Insurance.

Application for Canada Pension Plan (CPP)Benefits

Participants eligible for CPP benefits are expected to apply to receive them at age 60.

15.6.4 REQUIREMENT FOR ASSIGNMENT OF BENEFITS

An assignment of benefits is required in all cases where eligibility for EIA would not have existed had the income from the other department or program been received by the participant.

Where the participant is eligible for EIA regardless of the availability of the other resource, the request for assignment of benefits is at the discretion of the director or designate.  In these situations, duplicate assistance may be avoided either through an assignment of benefits or through declaration of the receipt of these benefits on a monthly Income Declaration Form.

A new assignment of benefits is required for CPP(D) when an applicant reapplies to EIA due to the fact that they had to discontinue employment as a result of their disability.

15.6.5 AGREEMENT TO ASSIGN BENEFITS

Participants must be advised that, except for maintenance payments, they may be required to assign benefits such as Canada Pension Plan (CPP) and employment insurance (EI), and that failure to do so may affect their EIA payment. The assignment process depends on the Act, agreement or program under which the benefit is provided.

The participant must give written consent to the specific authority providing the benefit which agrees to the assignment, permits the release of any information required by the department and authorizes the payments to be made to the department. This consent must be given at the same time, or before the individual receives the EIA payment, so that payment and subsequent payments can be recoverable.

15.6.6 REFUSAL TO ASSIGN BENEFITS

Those participants who are requested to assign benefits, other than maintenance payments, but refuse, will not be enrolled until an assignment is signed. For those participants who are already enrolled and who refuse to assign income, benefits will be suspended for one month allowing the participant an opportunity to reconsider. If, after one month, participants still refuse to assign the benefits required of them, assistance will be denied.

Participants must be advised, in writing, of the reason for the decision to deny assistance and of their right to appeal.

15.7.1 SPOUSAL MAINTENANCE AND CHILD SUPPORT BENEFITS

For convenience in this section, both spousal maintenance and child support are referred to as "maintenance".

Assessment of Maintenance Status

Participants who have a maintenance agreement or order, or who may be required to seek maintenance, must have their maintenance status assessed.

In Winnipeg, participants whose maintenance requires assessment must complete a Family Maintenance Plan. Case coordinators assist participants to complete and carry out their plans, where necessary.

Staff assess the following:

  • whether participants have an agreement or order and if they are receiving payments;
  • whether court orders are registered with the Maintenance Enforcement Program (MEP);
  • if participants who do not have an order or an agreement are required to seek maintenance;
  • if the obligation to seek maintenance should be waived (see Waiving The Necessity to Seek Maintenance" for circumstances under which maintenance may be waived);
  • whether maintenance will be assigned and steps to assign it (see Assignment of Maintenance to the Maintenance Enforcement Program; and
  • if the amount of maintenance appears to be inadequate (see Inadequate Agreements or Orders for information to assist in determining when maintenance is inadequate and steps to take when maintenance is inadequate).

15.7.2 WAIVING THE NECESSITY TO SEEK MAINTENANCE

When an agreement or order does not exist and the participant is unwilling to seek an order, then the worker must investigate and document reasons for the participant's reluctance to act.

In general, a situation is considered not to be worthwhile to require pursuit of maintenance if one of the following circumstances exists:

  • the potential payer is no longer living;
  • the paternity of the children is not clearly established;
  • the potential payer is physically or mentally unfit, or is incarcerated for more than two years; or
  • there is reason to believe that pursuit of an agreement or order would lead to a violent response by the potential payer.

15.7.3 INADEQUATE AGREEMENTS OR ORDERS

A new or varied court order should be sought when an agreement or order is inadequate because it allows for no payment by the payer or for only very small payments, unless it is decided that no useful purpose would be served by such action. The utility of pursuing such action depends upon the circumstances and resources of the potential payer.

A copy of a new order, or varied version of an order (with the participant's initials), must be transmitted to the MEP office.

For staff or participants to obtain information about the adequacy of orders, the Child Support Guidelines Project may be contacted at 1-877-943-2631.

15.7.4 OBTAINING AN AGREEMENT OR ORDER

Participants may make an informal agreement with the payer; they may seek a formal agreement, drawn up by legal counsel; or, they may obtain a court order.

In order to assist participants to seek a formal agreement or a court order, the worker should make appropriate referrals. Referrals can be made, depending upon the needs and location of the participant, to:

  • Legal Aid Offices; or
  • Women's Resource Centre in Winnipeg.

See section 6.15 regarding the provision of Legal Aid services to participants.

15.7.5 MAINTENANCE INCOME

Types of agreements and orders

Agreements and orders include maintenance orders, maintenance agreements, parents' maintenance orders, filiation orders, filiation agreements, child support orders, separation orders, separation agreements, divorce decrees and similar mechanisms defining financial support.

Treatment of Maintenance Income

As a requirement of eligibility, all financial resources must be considered in processing applications for assistance, including the legal entitlement and potential for support from applicants' spouses, partners or other parents of their children. However, payments must not be withheld in order to pressure applicants or participants to seek maintenance.

The entire amount of maintenance income is considered available for a participant's support and, as such, may be totally available to reduce assistance or to be assigned to the Government of Manitoba.

See section 15.2.6 for a description of the "Treatment of Ongoing Unearned Income".

Failure to notify EIA of the existence of a maintenance agreement or order

If participants fail to notify the department of an order or agreement that was in effect at any time during receipt of assistance from EIA, payments under the order will be calculated as income for the period covered by the order. In order to calculate the amount of maintenance as income, definitive proof that the payments were made is required such as the existence of cancelled cheques or bank statements showing the maintenance deposits.

15.7.6 ASSIGNMENT OF MAINTENANCE TO THE MAINTENANCE ENFORCEMENT PROGRAM

Participants have the choice whether or not they wish to assign their maintenance to the department, unless they have difficulty in collecting unassigned maintenance and need to request additional assistance from the program.

For participants who are having difficulty collecting their maintenance, staff should assess the utility of having these participants assign their maintenance, depending upon their circumstances. See the paragraph below entitled Maintenance not assigned regarding unassigned maintenance that is not being paid.

While participants with a court order do not need to assign their maintenance to the department, these orders must be registered with MEP. EIA staff should telephone the MEP line designated for EIA staff at 945-8278.

Maintenance not assigned

If participants choose not to assign their maintenance, the amount of maintenance payments that is set out in agreements or orders is deducted monthly from the participant's budget. Where the income is not received, participants may have to request additional assistance to ensure their basic needs are met. The additional assistance must be repaid once the support payment is received.

Unassigned maintenance that is not being paid

If the payer is not making maintenance payments, or is not paying the full amount, the utility of having the maintenance assigned should be assessed, depending upon the participant's and the payer's circumstances. If assigning the maintenance is determined to be the best course of action, steps should be initiated to assign maintenance through the following:

  • where there is a court order, a copy of order (with the participant's initials on it) and the proper forms should be forwarded to MEP;
  • in the case of an agreement that has an MEP clause, a copy (with the participant's initials on it) should be forwarded to MEP along with the proper forms;
  • in the case of an agreement that does not have an MEP clause, steps should be taken to obtain a formal court order which would then serve as a basis for transmitting appropriate forms to MEP.

Maintenance assigned

Maintenance may be assigned when a formal agreement or a court order exists.

Participants who choose to assign maintenance to the department receive full, unadjusted assistance. To assign maintenance to the department, the participant completes an assemblage of support and/or support arrears forms which are then registered with MEP. The payer is notified that support has been assigned and that payments must be made to MEP.

If participants who have assigned maintenance to the department subsequently cancel the assignment, EIA automatically deducts the amount of the order or agreement from their assistance cheques.

Collection of maintenance arrears that have been assigned

Once the participant is self-sufficient, payments made to MEP are sent directly to the participant and the payer is notified that the assignment has ended. Any arrears accumulated while the participant was in receipt of assistance are owed to the department. However, monies received by MEP are applied first to the current payment and then to any arrears.

15.7.7 REFUNDING MAINTENANCE PAYMENTS

When payments have been received for current maintenance from MEP after an income assistance file is closed (and when the funds should have been forwarded to the payee as the department's right to the payments has ceased), the procedures are as follows:

  1. When files are closed, EIA office staff should review the file where maintenance was assigned to the department to ensure that all necessary forms are completed and forwarded appropriately in a timely manner. A termination of assignment form must be completed prior to forwarding a Revenue Refund request.
  2. Forward a written Revenue Refund request to Finance and Administration asking that it refund the money to the participant. Finance and Administration make the appropriate debit on the miscellaneous recovery (IMRE).

Ensure that the correct case number, participant name, current address, amount to be refunded, and reason for the refund are documented on the written request.

15.7.8 STATEMENTS OF MAINTENANCE RECEIVED FOR INCOME TAX PURPOSES

MEP does not provide EIA offices with annual statements of monies received on behalf of income assistance participants who have assigned maintenance to the Department. Participants requesting statements for inclusion in income tax declarations should be advised to contact MEP directly at 945-7133. Participants must ask for their account record printout, provide their address and payer/payee names.

Participants may also write to MEP. In Winnipeg, the address is:

2nd floor - 405 Broadway
Winnipeg MB R3C 3L6

Outside Winnipeg, participants may contact the nearest MEP office to request the information. Participants outside Winnipeg may also contact Manitoba Government Inquiry, toll free, at 1-866-626-4862 to be directed to MEP.

If the statements contain inadequate information, they should be returned to MEP for completion.

15.7.9 THE CHILD WELFARE ACT

When the legislative provisions for child support were transferred from
The Child Welfare Act to The Family Maintenance Act, the authority for child support payments to be made to a child caring agency was deleted. As such, all child support orders which were originally payable to a child caring agency should be assigned to the Minister of Finance, the unmarried parent or a person acting as a trustee for the child, and registered with the Maintenance Enforcement Program. If this assignment and/or registration has not occurred, appropriate action should be taken to effect these changes.

15.7.10 VARIATION APPLICATIONS BY THE PAYER

Central Office staff forward applications for a variation of a maintenance order to field staff. Field staff must contact the Family Law Branch, 7th floor, 405 Broadway, to review the variation request.

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