To ensure the Direct Deposit payment method is used appropriately.

POLICY

The direct deposit method of payment is mandatory for Income Support (IS) clients, unless specifically exempted, because it:

• Is less costly and more efficient resulting in increased savings to taxpayers in administrative costs and fewer phone calls to workers.
• Provides cost saving to clients (who may otherwise pay fees at cheque cashing agencies).
• Ensures clients receive their benefits quicker, compared to mailed cheques.

Clients are expected to provide documentation to substantiate their banking information as soon as their application for IS benefits is approved. Program staff may grant the client a 30-day extension to provide this information and issue the first benefit payment by cheque. In these cases, staff enter a Reminder in Compass to follow-up with the client before the 30-day period elapses.

The Opening a Bank Account without Identification policy may be used to assist clients who are having difficulty establishing a bank account.

Note
Transient or One-Time Issue clients do not need to submit a Direct Deposit application unless they want their benefit deposited into their bank account.

Reasons to Exempt

Workers have discretion to exempt direct deposit based on their assessment of client circumstances. Possible reasons for exemption include:

• client requests an exemption because of garnishment;
• client is unable to manage a bank account due to a disability;
• client resides in a remote area and therefore lacks access to banking services;
• client is unable to obtain bank account due to credit history; or
• client is in the process of establishing a bank account.

Note
IS benefits deposited in a bank account that are not or have never been intermingled with other funds (i.e., a stand-alone bank account where no other funds are deposited except for IS benefits), cannot be garnisheed under the Civil Enforcement Act. This does not apply to garnishee orders legislated under other Acts. Clients with garnishee orders should be advised to discuss their situation with the creditor.

Out of Province Bank Accounts
Out of province accounts will be accepted for clients with an Alberta residence when the client verbally declares one of the following circumstances:

• The client has recently moved from another province and is unable to open a bank account in Alberta and/or their bank refuses to transfer their account.
• The client holds an account, which has centralized banking, with their Head Office in another province (e.g., Manulife Bank of Canada).
• The out of province banking institution offers free or reduced service charges (e.g., President’s Choice Financial).
• The client is disabled and does banking by phone or over the Internet.
• The client resides in a border municipality.

Online Bank Account

Accounts with a Canadian online banking institution will be accepted. These are banks that do not have any in-person offices or services. All banking is done via the internet.
For example, Tangerine, Simplii Financial, EQ Bank, Manulife Bank, etc.

Joint Bank Accounts (With Someone Not on the File)
Joint bank accounts are discouraged and clients should be advised:

• All money in a joint account is considered in determining eligibility.
• Joint accounts are a consideration when looking at the determination of financial interdependency.
• A joint account may be used as evidence of a continuing relationship between separated couples.

Acceptable Substantiation to Establish Direct Deposit
The client can choose one of the five options listed below, when submitting documents to substantiate their banking information. The IS program considers any one of these five options to be acceptable documentation.

1. The client completes and signs the Direct Deposit Registration (EMP2443IS) form, and attaches a void blank cheque to the form (the client’s name and address must be printed on the cheque).
   • A hardcopy cheque or PDF cheque downloaded from the client’s account online, are both acceptable.
2. The bank representative fills out and stamps the Direct Deposit Registration (EMP2443IS) form, and the client signs it.    
3. The client provides their bank’s own Direct Deposit Authorization form containing their name and address, bank information, and bank stamp (or logo, bar code, other marking, etc.).
   • A hardcopy cheque or PDF cheque downloaded from the client’s account online, are both acceptable.
4. The client provides a screenshot or printout of their bank account information including their name and address, bank number, branch number, and account number.
   • A combination of documents may be required and are acceptable, as long as the Worker is satisfied that the bank account belongs to the client.
5. If the client has existing account information on file from a previously active file, the Worker may use this information.
   • The client must confirm that their banking information is still current, otherwise new substantiation documents are required.

Clients are asked to provide either verbal or written authorization for the IS program to deposit funds into their account. If a client has not signed the declaration section on the EMP2443IS form or comparable document from their bank, the Worker is required to:

• Call the client and have them provide verbal confirmation that the banking information they submitted, is accurate;
• Obtain the client’s verbal consent to deposit IS benefits to their account, after reading the declaration section on the EMP2443IS to them; and
• Enter Compass Comment documenting that the client provided verbal confirmation of their banking information and consent for direct deposit.
  

Exceptional Circumstances
When a client is unable to submit the required documentation, staff can make an exception and establish direct deposit on the file, based on information that the client can provide. Staff must obtain the Delivery Manager’s approval to grant the exception and must record details of the situation in Compass Comments.

Two-Level Process for Adding or Updating Direct Deposit Information
Adding or updating direct deposit information on a client file is a two-level process completed by the Worker and the Secondary Reviewer. The Secondary Reviewer can be an administrative support staff, supervisor or other staff role, that has been designated the task of approving direct deposit information in LISA.

• The Worker adds new bank account information in LISA when a client file is first opened, or updates this information when an existing client requests that their benefits be deposited to a different bank account.
• The Secondary Reviewer approves the bank account information in LISA, after confirming it has been entered in the system correctly based on documentation provided by the client.

Bank Rejection Reports
Within two to five working days a Bank Rejection Report is initiated if the bank cannot locate the account number that has been sent electronically (i.e., the account has closed, the information was entered improperly, the bank provided wrong account number, or the account is from a bank branch that has not been registered with the Finance Department). In such cases, initial benefits can be mailed out and a Reminder is entered in Mobius for follow-up.

Note
The worker should contact CSS.CSCheqContr@gov.ab.ca to investigate if the bank is a valid bank registered in LISA. 

Recalls and Traces for Direct Deposits
If a Direct Deposit payment has been approved for release and the actual Direct Deposit date has not yet occurred, a recall can be requested to stop the payment from being deposited into the client’s bank account.

The following are some reasons a recall may be requested:

• Client changed banks without notifying the worker, and will require a reissue to be made to their new bank account.
• The worker identifies the client was issued more than they were entitled.

Requests for recalls must be made to Client Payment Systems by e-mailing the client’s name, direct deposit number, amount, and banking information to CSS.CSCheqContr@gov.ab.ca by 3:30 PM two full business days before the Direct Deposit’s due date.

If a client has indicated that a Direct Deposit was not deposited into their account, a trace can be requested to determine where the money was deposited. Requests for traces are made to Client Payment Systems by e-mailing the client’s name, direct deposit number, amount, and banking information to CSS.CSCheqContr@gov.ab.ca. It takes the bank approximately 5 working days to process a trace request.

PROCEDURES

Entering a Direct Deposit

When entering a client’s direct deposit information in the LISA system, the Worker:

1. Confirms that the client’s name and address entered in LISA, matches the documentation provided by the client. In cases where a client address on LISA does not match what is on the documentation provided, the worker should use other file information to verify the information is applied to the correct file and note in Compass.
2. Enters an “N” in the Direct Deposit Exemption field, located on the Bank Information Update screen in LISA;
3. Enters the Bank Number, Branch Number, and Account Number fields in the Bank Information Update screen in LISA;
4. Confirms that the banking information entered in LISA, matches the documentation provided by the client;
5. Enters Compass Comments to document that they have validated the person’s identity and banking information in LISA against the documents provided by the client, and entered the client bank account number in the system; and
6. Notifies the Secondary Reviewer that the file is ready for review.

 When approving a client’s direct deposit information in the LISA system, the Secondary Reviewer:

1. Confirms that the client name and address in LISA, matches the documentation provided by the client; In cases where a client address on LISA does not match what is on the documentation provided, ensure the information is correct based on other file information and that it is noted in Compass comments.
2. Confirms that the banking information entered in LISA, matches the documentation provided by the client;
3. Approves the banking information entered on the client file in LISA; and
4. Enters Compass Comments to document that they have validated the person’s identity and banking information in LISA against the documents provided by the client, and approved the client bank account number in the system.

Note
The client file will be placed on ‘waiting status’ whenever new direct deposit information is entered. This status will remain until a Secondary Reviewer (administrative support staff, supervisor or other staff role) has verified the information. When a client file is in ‘waiting status’, LISA will not release any benefits. Benefits can only be released when the client file is in ‘approved’ status.

If updated direct deposit information is received after Rollover, the client should be contacted to see if the previous bank account is still open to ensure benefits will be received. If the bank account is closed, do not update the bank account information in LISA until after the Bank Rejection Report (BKR01) or recall is received.

The Worker should enter the reason for an out of province bank account/online account in Compass Comments, as well as a Reminder in Compass to review the situation annually.

Exempting a Direct Deposit

Exempting a client from direct deposit is a two-level process, involving the Worker and a Secondary Reviewer. The Worker completes the following tasks:

1. Enters a “Y” in the Direct Deposit Exemption field, located in the Bank Information Update screen in LISA;
2. Enters Compass Comments documenting the direct deposit exemption and reason for the exemption on the client file;
3. Enters a Reminder in Compass to review the file periodically and confirm whether the client’s circumstances have changed, allowing them to set up direct deposit; and
4. Sends a request to the administrative support staff, or designate, to approve the direct deposit exemption entered in LISA.

The Secondary Reviewer completes the following tasks:

1. Approves the Direct Deposit exemption entered in LISA;
2. Enters Compass Comments indicating that they have approved the direct deposit exemption.

Note
Once exempted the client’s monthly payment will be issued via a mailed cheque.

Requesting a recall or Trace on a Direct Deposit

1. Send an email to CSS.CSCheqContr@gov.ab.ca or phone Cheque Control, and indicate:
   • The cheque number,
   • The cheque amount,
   • The client’s file number,
   • The client’s banking information (bank number, branch number, and account number), and
   • Whether a recall or trace is being requested.