Income and Employment Support Act (IESA), sections 16, Part 6 and Part 9
Income Support, Training and Health Benefits (ISTHB) Regulation, section 99
Recovery Regulation

Definitions and Terms

Collections Unit, Financial Operations
Financial Operations, Community and Social Services, is responsible for the management of debts on closed files as well as the collection of these debts through Treasury Board and Finance and/or contracted agencies. They also deal with caveats, bankruptcies and file reviews of contentious Community and Social Services debts.

LISA Recovery Letter
The letter printed by LISA when a file closes outlining the client’s outstanding debt to Community and Social Services and the options for payment.

Period of Assistance (POA)
The month in which an overpayment is assessed or a debt has occurred.

Treasury Board and Finance
Treasury Board and Finance is the first contact for collection and recovery activity on closed Income Support files.

POLICY

An overpayment occurs when a client:

• Received benefits due to non-disclosure of material fact, false representation, error or any other reason to which they were not entitled, or
• Did not use a supplemental benefit, a health benefit, or a training benefit for its intended purpose.

A debt occurs when a client is issued a benefit subject to repayment (i.e., the client agrees to repay the benefit issued). This is limited to those benefits listed in IESA, section 16 and ISTHB Regulation, section 99.

• Home repairs
• Replacement eye glasses beyond the optical agreement
• Relocation costs if client returns within 1 year
• Utility Arrears (after first time)
• Utility deposits (after first time)
• Rental Arrears (after first time) 
• Day care deposit and/or registration fees (after first time)
• Utility reconnection of each utility
• Duplicate benefits issued pending:
  • Retroactive payments (e.g., Canada Pension Plan or Employment Insurance) [IESA, section 16(2)]
  • A Workers’ Compensation Board settlement/payment
  • An insurance settlement [IESA, section 16(2)]
• Other Emergency Issue up to $1,021 to meet an emergency need
  
  

Note
Debts incurred under the Assured Income for the Severely Handicapped Act can be collected under IESA, section 38(2) and Part 9.

A debt refers to an amount determined to be repayable to the department. An amount is determined to be repayable to the department when the client:

• Agrees to repay the amount (by signing a repayment agreement);
• Is convicted of fraud and has been ordered to pay restitution or compensation;
• Has not filed an appeal on an assessed overpayment and the appeal period has expired (i.e., the client’s 30 day appeal period and notice period has elapsed);
• Has appealed an assessed overpayment and the Income and Employment Support Appeal Panel has upheld the department’s decision or has varied the overpayment amount; or
• Has appealed an assessed overpayment and the appeal panel has determined the appeal to be abandoned by the client.

A debt can also refer to third party amounts that are determined to be repayable to the department such as sponsorship defaults.

The rates and policies in effect at the time the overpayment was incurred must be used.

Earnings exemptions are not provided if the client intentionally did not report income, or intentionally reported a lesser amount than they received. If the client had no intent to mislead Community and Social Services an earnings exemption is provided against unreported income.

The client’s file must not be sent for destruction until the debt is paid in full.