LAST-RESORT FINANCIAL
ASSISTANCE PROGRAMS
AND
LIQUID ASSETS
(CASH AND NEGOTIABLE ASSETS)
• When you apply for the Social Assistance
Program or the Social Solidarity Program
• When you are a social assistance or social
solidarity recipient
• When you save in an individual development
account
Your liquid assets = a resource
When you apply for last-resort financial assistance under
the Social Assistance Program or the Social Solidarity
Program, the Ministère de l’Emploi et de la Solidarité
sociale evaluates your resources, including your cash and
the value of your assets. These are referred to as your
“liquid assets”.
Liquid assets are any sums of money or assets negotiable
in the short-term (savings bonds, securities, debts due,
term deposits, etc.) owned by you or your family. Your
liquid assets are taken into account in the Department’s
decision to approve or refuse your application for
assistance and to calculate your benefit, where applicable.
However, some liquid assets are excluded from the benefit
calculation. Under the Individual and Family Assistance
Regulation, these amounts may be fully or partially
excluded for a limited or unlimited period.
Your liquid assets are used to:
• v determine your eligibility on the date your application
is received by the Department (applies only to the Social
Assistance Program);
• calculate the amount of the benefit you will be granted
for the month in which you apply for the Social
Assistance Program or the Social Solidarity Program;
• calculate the benefit amount for subsequent months.
1
Calculation to determine eligibility
(applies to the Social Assistance Program
only)
When you apply for Social Assistance Program benefits,
the Department evaluates your eligibility based on your Table 1
liquid assets on the date your application is received. This Maximum liquid assets allowed on the date the
is known as the “eligibility test”. application for the Social Assistance Program is received
The eligibility test does not apply if you are eligible for the
Social Solidarity Program, i.e. if you or your spouse can Adults Minor Maximum
prove that you have a severely limited capacity for dependent allowed
employment. In this case, the Department calculates the children1
amount of the benefit for the month of application and for
1 0 $852
the following months.
Outstanding cheques and preauthorized payments 1 1 $1 218
intended to pay rent, electricity or heating are deducted 1 2 $1 443 2
from your liquid assets, provided they are cashable in the
month in which you apply. 2 0 $1 267
Some amounts are fully or partially excluded from the 2 1 $1 511
liquid asset calculation for a limited or unlimited period
(e.g. amounts a dependent child may have accumulated 2 2 $1 736 2
through paid work). Other amounts are excluded up to Spouse of student $852 3
$60 000 (e.g. amounts held in a registered retirement
savings plan (RRSP) or a registered education savings plan Independent adult sheltered
or living in an establishment
(RESP)). while awaiting social
The eligibility test consists in comparing your liquid assets reintegration, or minor
sheltered with child $852
on the application date with the amount determined by
the Regulation (see Table 1). This amount varies according
to family composition or individual status.
1. An amount of $165 is added to the basic exclusions for each
dependent child who receives a supplement for handicapped children
from the Régie des rentes du Québec. This amount does not apply to
minors sheltered with child in a rehabilitation centre or hospital.
2. An amount of $225 is added for a third dependent child and for each
subsequent child.
3. For persons whose spouse is enrolled in vocational training or post-
secondary education, an amount of $244 is added for the first
dependent child and $225 is added for each subsequent child.
2 3
If you benefit only from the claim slip (drug card) granted
for a limited period in order, among other things, to
participate in an employment-assistance measure or to
encourage your return to work, and you re-apply for the
Social Assistance Program, higher maximum liquid assets
amounts are provided (see Table 2). Table 2
Maximum liquid assets allowed on the date the
application for the Social Assistance Program is received
(for persons holding a claim slip granted for a limited
period)
Adults Minor Maximum
dependent allowed
children1
1 0 $2 500
1 1 $5 366
1 2 $5 591 2
2 0 $5 000
2 1 $5 244
2 2 $5 469 2
Spouse of student $2 500 3
Independent adult sheltered
or living in an establishment
while awaiting social
reintegration, or minor
sheltered with child $2 500
1. An amount of $165 is added to the basic exclusions for each
dependent child who receives a supplement for handicapped children
from the Régie des rentes du Québec. This amount does not apply to
minors sheltered with child in a rehabilitation centre or hospital.
2. An amount of $225 is added for a third dependent child and for each
subsequent child.
3. For persons whose spouse is enrolled in vocational training or post-
secondary education, an amount of $244 is added for the first
dependent child and $225 is added for each subsequent child.
4 5
If, the day you apply, your total liquid assets exceed this
amount, you are not eligible for the program. This means
you must submit a new application. However, this
application can be filed only as of the first working day of
the month following your first application. For example, a
person who submitted an application for assistance on
February 1 and who is declared ineligible due to surplus
liquid assets can re-apply only as of the first working day
in March.
If the sum of your liquid assets is equal to or less than this
amount, you are eligible to the program. The Department
calculates the amount of your benefit for the month of
application and for the following month, according to
your specific circumstances and resources.
Example 1
Family of two adults and one child who possess liquid
assets of $800 on the application date
Liquid assets $800
Minus outstanding cheques -$500
(rent, electricity, heating)
Liquid assets considered
for eligibility test $300
This family’s liquid assets are less than the maximum
provided for under the Regulation ($1511). The applica-
tion will therefore be studied. Next, the benefit is
calculated for the month of application and the
following month.
6 7
Calculation of the benefit for the
month of application (applies to the
Social Assistance Program and the Social
Solidarity Program)
The amount of the benefit corresponding to your
situation, as mentioned in examples 2 and 3, is calculated
based on the number of days remaining in the month of
application, minus your resources, i.e. your liquid assets,
income from various sources (work income, Commission de
la santé et de la sécurité du travail indemnity, etc.) and the
calculated value of your property. However, where
applicable, the following are subtracted from your liquid
assets:
• income already considered for the month of application;
• outstanding cheques and preauthorized payments
intended to pay rent, electricity or heating are deducted
from your liquid assets, provided they are cashable in the Table 3
month in which you apply; Amount subtracted from liquid assets possessed the
• amounts excluded fully or partially for a limited or an month of application1
unlimited period;
• an exemption that varies by family composition or Adults Minor Maximum
individual status (see Table 3). dependent allowed2
children2
1 1 $366
1 2 $591 3
2 1 $244
2 2 $469 3
Spouse of student 1 $244 3
1. This exemption does not apply to minors sheltered with child in a
rehabilitation centre or hospital.
2. An amount of $165 is added to the basic exclusions for each
dependent child who receives a supplement for handicapped children
from the Régie des rentes du Québec.
3. An amount of $225 is added for each subsequent child.
8 9
Applicable only to the Social
Solidarity Program:
• An additional amount corresponding to the basic
exemption of $2 500 for an independent adult (including
minors sheltered with child and spouses of student) or
$5 000 for a family; Example 2
Family of two adults admitted to the Social Solidarity
• Amounts partially excluded, i.e. those held in an RRSP or Program
RESP, to a maximum of $130 000,1 including amounts
Social Solidarity Allowance
received as an inheritance during the time the adult or and Québec Sales Tax (QST)
family received last-resort assistance or benefited from a (if application is submitted
claim slip.2 People who receive amounts of money as an before the 1st of the month) $1 266.67
inheritance may benefit from the exemption if they were Minus income - $100.00
recipients or claim slip holders if they received these sums
$1 166.67
within the six months preceding their application.
LIQUID ASSET CALCULATION
• An amount of $147 for each child of full age studying in
a general education secondary school. Step 1
Amounts held in an RRSP $4 000
Amounts received as an inheritance
See example 2. (if the amounts were received if the
benefits or claim slip was granted
within the six months prededing
their application) $10 000
Minus partial exemptions
(maximum $130 000) - $130 000
Total $0
Step 2
Liquid assets on the application date $6 000
Minus outstanding cheques
(rent, electricity, heating) - $500
Minus income already considered - $100
Minus basic exemption - $5 000
Liquid assets considered $400 - $400.00
Benefit for the month of application $766.67
1. This amount ($130 000) may also include the value of real estate.
2. The claim slip (drug card) is the one granted for a limited period,
among other things to participate in an employment-assistance
measure or to promote a return to work.
10 11
Applicable only to the Social
Assistance Program:
• Amounts partially excluded, i.e. those held in an RRSP or
RESP, to a maximum of $60 000.
Example 3
See example 3. Family of two adults without a limited capacity for
employment admitted to the Social Assistance Program
Even if you are eligible for the Social Assistance Program Basic benefit and Québec Sales Tax (QST) $877.67
or the Social Solidarity Program, you may not receive (if the application is submitted
benefits the month in which you applied. This occurs when on the 1st of the month)
the amount of your resources (liquid assets, property, Minus income - $100.00
income and benefits) is higher than the amount of the $777.67
benefit you would have received for the month, given the
LIQUID ASSET CALCULATION
number of days you were eligible and the exemptions that
applied. Step 1
If you benefit only from the claim slip (drug card) granted Amounts held in an RRSP $1000
for a limited period and you re-apply for the Social Less partial exemptions
Assistance Program or the Social Solidarity Program, more (maximum $60 000) - $60 000
flexible rules apply for the month in which you apply. To Total $0
benefit from these rules, however, you must meet certain
criteria.3
Step 2
Liquid assets on application date $200
Minus outstanding cheques
(rent, electricity, heating) - $50
Minus income already considered - $100
Liquid assets considered $50 - $50.00
Benefit for month of application $727.67
3. Sheltered adults and sheltered minors with child may also benefit
from these more flexible conditions if they meet certain criteria.
12 13
For the months following the month you applied Applicable only to the Social Solidarity Program:
for financial assistance under a last-resort • Amounts partially excluded, i.e. those held in an RRSP or
financial assistance program, what is the maximum RESP, to a maximum of $130 000,1 including amounts
amount of liquid assets allowed before your benefit received as an inheritance when the adult or family
is reduced? received last-resort assistance or benefited from a claim
slip.2
For the months following the month you applied for a
last-resort financial assistance program, you may possess a Applicable only to the Social Assistance Program:
certain amount of liquid assets, depending on your • Amounts partially excluded, i.e. those held in an RRSP or
situation, without having your benefits reduced. These are RESP, to a maximum of $60 000.
the so-called ‘basic exemptions’ provided for in the
Regulation. They are as follows.
For the Social Assistance Program:
$1 500 for an independent adult1
$2 500 for a family
For the Social Solidarity Program:
$2 500 for an independent adult1
$5 000 for a family
Other amounts are also excluded for the months following
the month of application:
• amounts excluded in full for a limited or unlimited
period;
• a certain amount (see Table 3) for each dependent minor
child;
• an amount of $147 for each child of full age studying in
a general education secondary school.
1. This amount ($130 000) may also include the value of real estate.
2. The claim slip (drug card) is the one granted for a limited period,
1. This amount also applies minors sheltered with child and to spouses among other things to participate in an employment-assistance
of a student. measure or to promote a return to work.
14 15
Saving in an individual development How can you save in an individual development
account account?
An exemption to help you save up for a special There are two options for saving in an individual
project development account: an individual savings plan or an
institutional savings plan.
Under certain conditions, you can benefit from an
exemption in calculating your liquid assets. This • Individual savings plan
exemption allows you to deposit your money in an open For an individual savings plan, you are the only one who
account in a financial institution for a special project. This deposits amounts in your account.
is the so-called ‘individual development account’. • Institutional savings plan
For an institutional savings plan, an organization
What is an individual development account? contributes financially to your account on the condition
It is an account opened at a financial institution whose that you also deposit certain amounts.
accrued amounts must be used exclusively by you or a
member of your family to: Who can open an individual development
account?
• participate in a training project;
• Any adult who is a social assistance or social solidarity
• purchase work instruments or equipment needed to hold
recipient.
employment;
• Holders of claim slips granted for a limited period, among
• create self-employment or start up a business;
other things to participate in an employment-assistance
• purchase or repair a residence; measure or to promote a return to work.
• purchase an automobile. An individual development account can be registered
You can save up for more than one of the above projects. under the name of one adult only. Each adult in a family
can open his/her own individual development account.
The individual development account may be a savings
However, individual development accounts may not be
account, a term deposit or an investment in a financial
opened in the name of dependent children.
institution that operates in Canada. For all options, the
account must be clearly identified as an individual For individual savings plans, savings must begin during a
development account. month in which last-resort financial assistance benefits or
a claim slip were granted.
The amount saved in this account may be built up
gradually or deposited in bigger quantities, for example, For institutional savings plans, savings can begin at any
through money received as a gift. time.
What is the maximum amount that can be saved
in an individual development account?
You can accumulate up to $5 000. In the case of a family
made up of two adult recipients, each recipient can
contribute up to $5 000.
16 17
How are individual development account amounts
considered in calculating your liquid assets?
Individual development account amounts of up to $5 000
are excluded from the benefit calculation up to the overall
$60 000 exemption for the Social Assistance Program or
the $130 000 exemption applicable to the Social Solidarity
Program.
For example, a registered retirement savings plan (RRSP),
grant or loan earmarked for creating self-employment are
considered liquid assets in the same way as amounts
deposited into individual development accounts. The
overall value of these types of liquid assets are excluded up
to $60 000 for the Social Assistance Program and
$130 000 for the Social Solidarity Program. Example 4
Independent adult admitted to the Social Assistance
See examples 4, 5 and 6. Program with the following liquid assets:
LIQUID ASSET CALCULATION
Overall exemption $60 000
Minus liquid assets
RRSP $50 000
Other types of liquid
assets excluded $1 000
Total liquid assets $51 000 - $51 000
Remaining exemption $9 000
Maximum amount a person
may deposit in his/her individual
development account $5 000
If the person deposits an amount
that exceeds the maximum allowed,
the liquid assets exceeding the basic
exemption of $1 500 will be considered
in calculating the benefit. The basic
exemption does not apply for the
month of application.
18 19
Example 5
Independent adult admitted to the Social Assistance
Program with the following liquid assets:
LIQUID ASSET CALCULATION
Overall exemption $60 000
Minus liquid assets
RRSP: $56 000
Other types of liquid
assets excluded $1 000
Total liquid assets $57 000 -$57 000
Remaining exemption $ 3 000 Example 6
Maximum amount a person
may deposit in his/her individual
Family of two adults admitted to the Social Solidarity
development account $3 000 Program with the following liquid assets:
If the person deposits more than LIQUID ASSET CALCULATION
$3 000 in the account, the liquid Overall exemption for the family $130 000
assets exceeding the basic exemption Minus liquid assets
of $1 500 will be considered in RRSP: $123 000
calculating the benefit. The basic Other types of liquid
exemption does not apply for the assets excluded $5 500
month of application.
Total liquid assets $128 000 -$128 500
Remaining exemption $1 500
Maximum amount the two adults
combined may deposit in their
individual development accounts. $1 500
If one of these two people has
$1 000 in an individual development
account, the other person may save
$500 in his/her account.
However, if their combined savings
exceed $1 500, 2% of the difference
will be considered in calculating their
benefit and the basic exemptions
will not apply.
20 21
What happens if you re-apply for last-resort If you use these amounts for other purpose, they will be
financial assistance after you have stopped considered in full in calculating your monthly benefit and
receiving employment assistance for a certain the basic exemptions will not apply.
time? You could be asked to provide the Department with the
monthly statements for your individual development
If, when you re-apply for assistance under a last-resort
account.
financial assistance program, you already have an
individual development account, the amounts deposited
into the account over the five years preceding the new
If your liquid assets exceed the total
application will be exempted from the calculation of your
exemptions
liquid assets. If you think that on the last day of the month your liquid
assets will exceed the total exemptions provided for in the
This rule does not apply to an institutional savings plan in
Regulation (surplus liquid assets), you should know that
which case the amounts accrued are excluded up to the
your benefit for the following month could be affected.
allowable maximum regardless of the period preceding the
time you re-apply. Having or spending surplus liquid assets
Are there certain obligations when you have an If you have surplus liquid assets, the amount that exceeds
individual development account? the maximum to which you are entitled on the last day of
the month will be included in the calculation of your
Yes. When you open an individual development account,
employment-assistance benefit for the following month.
you must inform your local employment centre (CLE) in
Your benefit will therefore be reduced by the amount of
writing:
your surplus liquid assets. In some cases, your benefit
• before the first deposit, at the latest on the last day of could even be cancelled.
the month following the first deposit, for an individual
It is critical that you inform your officer of any surplus
savings plan;
liquid assets, otherwise a claim could be issued for the
• as soon as possible, for an institutional savings plan. repayment of benefits overpaid. Note that you must not
The required form is available at your local employment squander or cede your liquid assets and you must dispose
centre (CLE). of them reasonably and responsibly, otherwise your benefit
could be refused, reduced, cancelled or reclaimed.
Can you make withdrawals from an individual
development account?
You can make withdrawals from your individual
development account. However, the amounts withdrawn
must be used exclusively for the project(s) you have
committed to carrying out, as approved by the Ministère
de l’Emploi et de la Solidarité sociale.
22 23
Inform your officer and keep your documents
If you have or foresee having surplus liquid assets, it is
important to inform your CLE officer as quickly as
possible. The officer will give you the relevant information
required.
It is also important to save or give your officer all
documents indicating the source of any amounts received
other than last-resort financial benefits, such as your bank
book or credit union book, the sales contract for an item,
or a statement from a financial institution indicating
withdrawals from an RRSP or RESP.
Keep your receipts and other documents showing how you
spent your surplus liquid assets, since your officer may ask
for them.
24
For further information
Contact your local employment centre (CLE) or
the Bureau des renseignements et plaintes of the
Ministère de l’Emploi et de la Solidarité sociale, at
the following numbers:
• If you live in the Québec City area
418 643-4721
• Elsewhere in Québec, toll-free
1 888 643-4721
www.mess.gouv.qc.ca
This paper is made from 100% post-consumer recycled paper. A-628 (2007-02)
Note
This general information document cannot be
used for legal interpretation purposes and does
not replace the provisions of the legislation and
regulations referred to. The information contained
in this document applied in January 2007.