Notice #642B - Questions and answers

Questions and answers

Number:

CESP/PCEE-2015/16-003B-642

Date:

October 13, 2015

Subject:

Application for Saskatchewan Advantage Grant for Education Savings (SAGES) Following Transfer from Non-offering Promoters Policy

Q1. What is the “Application for SAGES Following Transfer from Non-offering Promoters Policy”?

A1. The Application for SAGES Following Transfer from Non-offering Promoters Policy is a new policy that provides subscribers who transfer RESP assets from a non-offering SAGES promoter to an offering SAGES Promoter with the flexibility to apply for SAGES on eligible contributions made with the non-offering promoter.

Q2. When will the Application for SAGES Following Transfer from Non-offering Promoters Policy come into effect?

A2. The new policy comes into effect immediately.

Q3. How will promoters submit an Application for SAGES Following Transfer from Non-offering Promoters?

A3. Promoters will submit the request through a manual intervention, processed by ESDC. However, before a manual intervention can be processed by ESDC, a SAGES request must be successfully processed in the Canada Education System Program (CESP) system.

The subscriber will be required to make a new contribution to the RESP at the offering SAGES promoter and complete a SAGES application form (SDE 0093-C).

Once the SAGES request on the new contribution is successfully processed in the CESP system, the promoter offering SAGES can send an email to ESDC requesting SAGES on eligible contributions made with the non-offering Promoter at the following email address: cesp-pcee@hrsdc-rhdcc.gc.ca

Q4. Please provide a detailed scenario of a SAGES request following the transfer of contributions made at a non-offering promoter.

A4. John transfers his RESP from Promoter A, a non-offering SAGES promoter, to Promoter B, a SAGES offering promoter. John makes new contributions at Promoter B and applies for SAGES. Promoter B submits transactions to request SAGES on the new contributions through the CESP system. Once a SAGES request on the new contributions is successfully processed, Promoter B can request SAGES on eligible contributions made by John while he was with Promoter A by sending a SAGES request by email to CESP Client Services.

Q5. Please provide an example which clarifies the subscriber’s application date for contributions made at a non-offering promoter and the three-year-rule.

A5. Example:

• The subscriber made an RESP contribution on January 1, 2013, with a non-offering SAGES promoter.
• The subscriber transferred an RESP account to a SAGES offering promoter on March 1, 2015.
• The subscriber made new contributions at the SAGES offering promoter and completed a SAGES application form on March 1, 2015.
• The SAGES offering promoter submitted the SAGES request on the new contributions through the CESP system. After this request was successfully processed the SAGES offering promoter sent a SAGES request on eligible contributions made at the non-offering promoter by email to CESP Client Services on August 1, 2015.

SAGES request on contributions made at a non-offering promoter:

• Subscriber: To receive SAGES on contributions made on January 1, 2013, the subscriber must complete the SAGES application form within three years, no later than January 1, 2016.

Three-year-rule:

• Promoter: As the subscriber completed a SAGES application on March 1, 2015, the promoter must successfully submit a SAGES request by email to CESP Client Services prior to March 1, 2018, in order to receive SAGES on the eligible contributions made at the non-offering promoter starting January 1, 2013.

Q6. Would Saskatchewan extend the period allowed to request SAGES following transfer on contributions made at a non-offering promoter for the promoters who are not ready to offer?

A6. No, the policy is being introduced to provide subscribers with the flexibility to apply for SAGES on eligible contributions made on or after January 1, 2013, following a transfer from a non-offering SAGES promoter to an offering SAGES promoter within 3 years.

Contact us

If you have any questions on this Information Bulletin, please contact us by e-mail at cesp-pcee@hrsdc-rhdcc.gc.ca or call at 1-888-276-3624. Our hours of operation are from 8 am to 5 pm Eastern Standard Time.

Related information

Notice 642A - Application for SAGES Following Transfer from Non-offering Promoters Policy