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Purpose Of Directive

To describe the treatment of retroactive income when assessing an applicant’s/recipient’s
eligibility and/or the amount of income support to be provided.

Legislative Authority

Part I, section 8 of the Act states:

8.       (1) The Director shall in prescribed circumstances, as a condition of eligibility for income support, require
an applicant, a recipient or a dependant to agree to reimburse the Director for the income support provided or to be

          (2) An agreement under subsection (1) may require an assignment, as prescribed.

          (3) This section does not apply to,

          (a) a payment that would be exempt as income or assets under this Act or the regulations; or

         (b) that portion of employment earnings, pension income or other prescribed        income that is    paid
with respect to a period after the period during which the person receives income           support.

Part I, Section 13 of the Regulation states:

          13. (1) If money is due and owing or may become due and owing to a member of a benefit unit that, if
received, would be or would have been included as income for the purpose of calculating the income support
payable for the benefit unit, the Director may require, as a condition of eligibility for income support, that the
member of the benefit unit or the person authorized to act for that member agree in writing to reimburse all or any
part of the income support paid when the money becomes payable.

          (2) An agreement under subsection (1) may include,

                    (a)       a requirement to reimburse income support paid from the date of the event giving rise to
                              the money being due and owing or becoming due and owing;

                    (b)       an authorization and direction to the person or agency by whom the money is payable to
                              deduct and pay the money directly to Ontario; and

                    (c)       an assignment to Ontario of the right to be paid the money.

          (3) An authorization and direction and assignment made under this section is irrevocable.

          (4) If a person who has made an agreement under subsection (1) receives money to which the agreement
applies, the person shall reimburse Ontario in accordance with the agreement for income support paid since the date
of the event giving rise to the money being or becoming due and owing.

Assignment of Retroactive Income                          0302-02                                            June 1, 1998
ODSP Branch                                                                                                        Page 1

          (5) If the amount reimbursed is attributable to a number of months, the amount reimbursed for each month
shall be the lesser of,

                    (a)       that portion of the amount received that is attributable to that month; and

                    (b)       the amount of income support for that month.

         (6) The agreement to reimburse, the authorization and direction and the assignment may be retrospective,
prospective or both.

        (7) Subsection (1) applies with respect to income or capital but does not apply to money that would be
exempt as income or assets for the purpose of determining eligibility for income support.

         (8) A member of a benefit unit is not ineligible for income support solely because a person or agency failed
to deduct and remit money under an authorization and direction or an assignment made under this section, unless,

                    (a)       the failure to deduct and remit is caused by the member of the benefit unit; or

                    (b)       the member of the benefit unit received the money from the person or agency and failed
                              to remit it to the Director in accordance with the agreement.

        (9) For the purpose of subsection 14 (2) of the Act, the prescribed overpayment amount is the amount that
would have been payable to the Director under an agreement made under subsection (1).

Intent Of Policy

To ensure that ODSP income support is not provided where a person is likely to receive income
from other sources.


Where an application for income support is taken, ODSP staff shall make the necessary inquiries
of the applicant to identify any potential or pending retroactive payments that may impact on the
application or the provision of the grant.

ODSP staff must complete all the necessary assignment forms and provide copies of the
completed form to the applicant/recipient. A new assignment must be taken in all cases when a
recipient transfers from OW to ODSP.

Program Monitoring/Audit Requirements

Random file reviews to ensure that:

1.        adequate documentation is on file to support decisions;

2.        required forms are complete, on file and signed by the applicant, spouse or dependent

Assignment of Retroactive Income                          0302-02                                               June 1, 1998
ODSP Branch                                                                                                           Page 2

3.        the amount of the assignment, direction or reimbursement has been calculated accurately;

4.        overpayments are established where assignments are not honoured or reimbursement is
          not received;

5.        follow-ups are documented and appropriate action taken; and

6.        upon termination all assignments and directions are canceled.

Application of Policy

Intent to Seek or Take an Assignment

Where there is a possibility of an applicant/recipient or any member of the benefit unit being
entitled to or in receipt of income from any of the sources listed below, ODSP staff must advise
the applicant/recipient about the requirement to take an assignment of retroactive income.
Where the applicant, recipient or member of the benefit unit may be entitled to receive a future
payment from any of the sources listed below, and this payment is likely to cover the same period
for which ODSP income support is being paid, a written agreement to reimburse the Ministry is
required subject to ODSP asset and income exemptions.

Sources of future payments:

C         Mortgage, agreement for sale, or loan agreement;

C         Payments under any annuity, pension plan, superannuation scheme, or insurance benefit;

C         Payments for support or maintenance under a Court Order or a domestic contract or

C         Maintenance allowance under a training program;

C         Law suits;

C         Accident claims;

C         Estate settlements; and

C         Trust funds.

C         Pensions Under

          <         The Pension Act (Canada)

Assignment of Retroactive Income                0302-02                                   June 1, 1998
ODSP Branch                                                                                     Page 3

          <         Old Age Security Act

          <         War Veterans Allowance Act

          <         Civilian War Pension and Allowance Act

          <         Employment Insurance Act

          <         Workers’ Compensation Act

          <         Canada Pension Plan/Quebec Pension Plan

There is no intention either to seek an assignment against the types of income or assets exempted
under the Regulation or to take an assignment on earnings or other income that is not attributable
to the period in which income support was received.

Assignment Forms

The agency assignment form must be used if the money is to come from an agency such as
Canada Pension Plan or Workers’ Compensation Benefits. The copies will be distributed at the
time of grant, or immediately, if ODSP is already in pay.

The agency will be asked to confirm receipt of the assignment and inform the Ministry whether
the assignment will be honoured. The recipient will be informed that if the assignment is not
honoured or if through an error the money is forwarded to the recipient, he/she will be
responsible for reimbursing the Ministry.

There are three Ministry assignment forms that are used if the money is to come from a source
without its own form: Forms 0252,2208 and 2209. In civil actions (lawsuits) most of the
information required to complete these forms comes from the Statement of Claim. The
Statement of Claim is a court form, not a Ministry form, which advises the defendant(s) that a
legal proceeding has been commenced against them by the plaintiff(s). It sets out the claim and
explains the procedures to follow to submit a defence. ODSP staff must request a copy of this
form from the recipient. It provides the names and addresses of the plaintiff and plaintiff’s
counsel and the name and address of the defendant(s) which are used on the MCSS forms 0252,
2208, 2209.

Form 0252, Assignment and Direction of Monies Payable as a Result of a Motor Vehicle

Form 0252 must be completed for all recipients and members of the ODSP benefit unit who were
injured in a motor vehicle accident. Where the injured claimant is a child, the parent signs on
his/her behalf (e.g. Claimant - "Mary Smith by her mother June Smith").

Assignment of Retroactive Income                 0302-02                                 June 1, 1998
ODSP Branch                                                                                    Page 4

The monies assigned might consist of "No Fault Benefits" or "Statutory Accident Benefits"
which are payable under a motor vehicle insurance policy.

Form 2209 Assignment and Direction

Form 2209 must be completed in all cases except motor vehicle accidents, where the recipient or
member of the benefit unit has made a claim for damages or insurance benefits for personal
injury, such as malpractice or falls.

The following information should be inserted in this form:

Item (1): "person or agency from whom monies are owed to Recipient," the defendant’s name
and company against which a claim is being made, any insurance company involved, as well as
the recipient’s (plaintiff’s) lawyer’s name and title (if money is payable from a lawyer).

Item (2): the same information inserted in section (1).

Item (3): "Name of Recipient’s lawyer", the name and address of the recipient’s (plaintiff’s)
lawyer s.

          Note: the signature of the recipient is on the right side of the form and the signature of
          the witness is on the left. The contact person is ODSP staff .

Form 2208 Agreement to Reimburse

The following information should be inserted in this form:

At "hereinafter referred to as the recipient" - the name of the plaintiff as per the Statement of
Claim form is the ODSP recipient’s name.

Item 3: The defendant’s name and any company or insurance company against whom the claim is
also made, plus the recipient’s/plaintiff’s lawyer’s name since money may go through the lawyer.

If the recipient requests a copy of the Assignment and/or Agreement, he/she may be provided
with a photocopy of the completed and unsigned form to review with a lawyer. If the package is
already signed, photocopies of the package may be provided to the recipient . A reasonable
deadline must be set for the recipient to return to sign or approve the original form, perhaps 15
days. After the period of time, if the recipient has not contacted ODSP staff, the recipient may be
suspended and /or terminated. In no circumstances should the original signed or unsigned
package of forms be turned over to the recipient.

Assignment of Retroactive Income                 0302-02                                      June 1, 1998
ODSP Branch                                                                                         Page 5

Ontario Insurance Commission

If benefits are wrongfully delayed or denied by an insurer, the claimant may be referred to the
Ontario Insurance Commission for assistance.

Every time an Assignment and Direction is completed, the Insurer has to be served (canary copy)
and an Affidavit of Service completed. It is only binding on the debtor/insurer if a copy is
received. Service is effected by sending the copy to the insurer by ordinary mail. The original
Affidavit of Service is attached to the white copy of the assignment and sent to Legal Services
Branch at MCSS. A copy of the Affidavit of Service is attached to the pink copy of the
assignment and placed on the corporate file.

If the payment is not reimbursed to the Ministry, the amount of the award will be applied to the
months for which it was applicable and an overpayment will be calculated.

Receipt of Payments

When notice of payment to Ontario is received, ODSP staff must check the amount received
against the amount and period of ODSP income support to ensure that the amount of the
assignment does not exceed the total amount of the income support paid to the recipient during
the period for which these monies were paid.

If the payment exceeds the amount paid by ODSP for this period, the excess is to be refunded to
the recipient.

Once the Ministry/Municipality/First Nation has been reimbursed in full, a Cancellation of
Assignment, Form 0507, must be completed with a copy forwarded to the insurer ( if the
Ministry was reimbursed directly by the insurer) or to the recipient’s solicitor (if the funds came
from that source).

Failure on the part of any person, agency/government to deduct and remit monies to Ontario
pursuant to an assignment given by an applicant/recipient will not cause the person to be
considered ineligible.

Cross References

0301-01             Definition and Treatment of Assets
0301-06             Compensation Awards
0301-07             Funds Held in Trust
0302-01             Definition and Treatment of Income
0302-11             Mortgage Receivable
0801-02             Subrogation

Assignment of Retroactive Income                 0302-02                                    June 1, 1998
ODSP Branch                                                                                       Page 6

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