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Canada Education Savings Program (CESP) - Glossary

Accumulated Income Payment (AIP)
A payment of the income earned from an RESP, usually paid to the subscriber. It does not include Educational Assistance Payments (EAPs), payments to a designated educational institution in Canada, transfers to another RESP, or repayments of the Canada Education Savings Grant (CESG), Canada Learning Bond (CLB), and/or the Alberta Centennial Education Savings Plan (Alberta Grant). An AIP cannot be made as a single joint payment to separate subscribers.
Beneficiary
Usually a child, but can be any person named by the subscriber of an RESP who may be eligible to receive the education savings incentive(s) and who may receive Educational Assistance Payments (EAPs) from the RESP. See Educational Assistance Payment (EAP).
Benefit Year
The time period, as defined under the Income Tax Act (ITA), over which payments of the National Child Benefit Supplement (NCBS) are made to eligible recipients. The benefit year runs from July 1st of one year until June 30th of the next year. The July 1st start date is based on the April tax return for the previous year. The Canada Learning Bond (CLB) is made available to families who qualify to receive the NCBS in a benefit year.
Blood Relative
The Income Tax Act, describes a "blood relationship" as one between a parent and child (or grandchild or great grandchild) or between a brother or sister. The subscriber's niece, nephew, aunt, uncle and cousin do not meet the definition of "blood relative". An individual is not considered to be a blood relative of himself / herself.
Canada Education Savings Grant (CESG)
An education savings incentive administered by the Canada Education Savings Program (CESP) of the Human Resources and Skills Development Canada (HRSDC). The CESG is based on contributions made to an RESP on behalf of an eligible beneficiary and is comprised of two components: the Basic CESG and the Additional CESG. See Basic Canada Education Savings Grant (CESG) and Additional Canada Education Savings Grant (CESG).
Canada Learning Bond (CLB)
An education savings bond introduced by the Government of Canada in 2004 to provide an education savings incentive for children in modest-income families, and for children in care, who are born on or after January 1, 2004. The Canada Education Savings Program (CESP) of the Human Resources and Skills Development Canada (HRSDC), will track the CLB for eligible children and hold these entitlements "in trust" as they accumulate until an RESP is designated to receive the CLB on their behalf. The CLB consists of the Initial and Subsequent CLB payments.
Child in Care
A child under the care of an agency (public primary caregiver) that receives payments under the Children's Special Allowances Act. See Public Primary Caregiver.
Contributions
Amounts of money deposited into an RESP by a subscriber on behalf of a beneficiary. Contributions may be eligible to attract Canada Education Savings Grant (CESG) payments. Payments made into an RESP through a designated provincial program are not considered to be contributions and will not attract CESG. See Designated Provincial Program.
Custodial Parent or Legal Guardian
An individual, department, agency, or institution that has the legal right to make decisions affecting a child's interests, and has the responsibility of taking care of the child.
Designated Provincial Program
A program defined under the Income Tax Act to encourage the financing of children's post-secondary education through savings in registered education savings plans. The program can be established under the laws of a province or administered through an agreement between a province and the department of Human Resources and Skills Development Canada. Payments made into an RESP through a designated provincial program are treated the same way as federal grants or bonds and do not attract federal grants or bonds themselves. These payments are not considered to be contributions to an RESP. See Contributions.
Education Savings Incentive(s)
Refers to one or all of the education savings assistance programs described within this User's Guide, including the Basic Canada Education Savings Grant (CESG), the Additional CESG, the Canada Learning Bond (CLB), and the Alberta Centennial Education Savings Plan (Alberta Grant).
Education Savings Plan (ESP)
A savings vehicle used to save for a child's post-secondary education. More precisely, it is a contract between an individual (the subscriber) and the RESP Promoter. The subscriber makes contributions that accumulate tax free earnings. In return, the RESP Promoter agrees to use the accumulated funds to pay Educational Assistance Payments (EAPs) to one or more beneficiaries designated by the subscriber. See Registered Education Savings Plan (RESP).
Educational Assistance Payment (EAP)
A payment from an RESP to help an eligible beneficiary cover expenses associated with post-secondary education. An EAP is made up of educational incentive amounts paid into an RESP, as well as income earned on contributions and incentive amounts. The EAP must be included as income on the student's income tax return for the year payments were received.
Effective Date
The date that an RESP is opened; also referred to as "the effective date the plan was entered into."
Eligible Alternate Beneficiary
A beneficiary named in an RESP who is a sibling of the eligible beneficiary. This concept is specific to the Alberta Grant. See Alberta Centennial Education Savings Plan (Alberta Grant).
Eligible Beneficiary
A beneficiary of an RESP who meets the eligibility criteria required to receive one or more education savings incentives.
Enrolment (Full-time / Part-time)
The post-secondary institution determines and defines what constitutes full-time and part-time enrolment. For example, the beneficiary is considered to be attending post-secondary education full-time if the institution considers them to be enrolled full-time.
Error Reports
CESP System-generated reports, identifying the field(s) in error, which are sent to the RESP Provider when information submitted to the Canada Education Savings Program (CESP) is missing or improperly formatted. Until the RESP Provider makes the correction and resubmits the information to the CESP System in a subsequent processing period(s), payment of the incentives will be delayed. There are two types of error reports:
  • RT 800 Error Report indicates that validation has failed or information submitted is missing or incorrectly formatted. The record is rejected and the transaction must be corrected and resubmitted.
  • RT 850 Severe Error Report identifies severe errors and advises that the record is rejected and must be corrected and resubmitted.

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Family RESP
Plans that can have one or more beneficiaries. However, each beneficiary must be connected by blood or adoption to each living subscriber under the plan, or have been connected to a deceased original subscriber, and be under 21 when named. Note that contributions to this plan can only be made until a beneficiary turns 31.
Government Telecommunications and Informatics Services (GTIS)
The organization, under the management of Public Works and Government Services Canada (PWGSC), that facilitates the secure exchange of information, via the internet, between organizations (RESP Providers and the Canada Education Savings Program).
Grant Room
The amount of Canada Education Savings Grant (CESG) to which eligible children are entitled. Each year that they are eligible to receive the CESG, they accumulate grant room, even if they have not been named as the beneficiary of an RESP.
Group RESPs
RESPs that are operated on a pooling principle, through age cohorts, where the beneficiary named under a contract by a subscriber will receive Educational Assistance Payments (EAPs) when enrolled in a qualifying program. Contributions to a Group plan are calculated by the Foundation's actuary. The amount and frequency of these contributions usually stay the same as long as the beneficiary has not attained 18 years of age.
Since program rules may preclude sharing the incentive(s) and/or earnings, it is recommended that readers refer to the individual incentive chapters in Section 2: Education Savings Incentives, under the heading related to Receiving and Depositing the incentive.
Individual Primary Caregiver
The person eligible to receive the Canada Child Tax Benefit (CCTB) for the child, as defined under the Income Tax Act (ITA). This can be the mother, father, grandparent, or a guardian.
Individual RESP
A plan with only one beneficiary. That beneficiary may or may not be related to the subscriber and can be over 21 when named a beneficiary. Since subscribers can open plans for themselves, a subscriber can also be the beneficiary of a Non-family RESP. Contributions to this type of plan can be made up to 32 years after the plan is established.
Net Family Income
The net income of the beneficiary's family, used to determine eligibility for the Canada Child Tax Benefit (CCTB). The CCTB notice specifies the family's net income. See Canada Child Tax Benefit (CCTB).
Non-family RESP
See Individual RESP
Notional Account
See RESP Account.
Participating RESP Promoter
An RESP Promoter that is authorized to offer education savings incentive(s).
Post-Secondary Educational Institutions
Educational institutions, recognized by the Canada Revenue Agency (CRA), offering qualifying educational programs at the post-secondary level. Eligible beneficiaries must attend a qualifying program in a recognized post-secondary educational institution in order to receive Educational Assistance Payments (EAPs). See Educational Assistance Payment (EAP).
Primary Caregiver (PCG)
A person or organization primarily responsible for the care and upbringing of a child. A primary caregiver can be an individual or a public entity. The child's primary caregiver now plays an important role in light of changes to the Canada Education Savings Grant (CESG) and with the introduction of the Canada Learning Bond (CLB). See Individual Primary Caregiver and Public Primary Caregiver.
Promoter
The RESP promoter sets up a specimen plan, has it approved by CRA and enters into contracts (ESPs) with its clients. The promoter is responsible for the registration of the ESPs as well as for the general administration of the RESPs. Promoters include financial institutions, such as banks and credit unions, as well as Group plan dealers. See RESP Provider.

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Provincial Grant (P-Grant)
Grant money paid into the RESP under a designated provincial program provincial education savings program administered by HRSDC. Currently, the P-Grant refers to the Alberta Grant. See Alberta Centennial Education Savings Plan Grant (Alberta Grant)
Public Primary Caregiver
The child care departments, agencies, institutions and organizations eligible to receive payments under the Children's Special Allowances Act for a child in their care. See Child in Care.
Qualifying Educational Program
A course of study that offers credits towards a degree, diploma or occupational skills certificate at the post-secondary level. The program must last at least three weeks in a row, with at least 10 hours of instruction or work each week. A program at a foreign educational institution must last at least 13 weeks. Qualifying educational programs include apprenticeships, and programs offered by a trade school, CEGEP, college or university. See Specified Educational Program.
Receiving RESP Provider
The person or organization holding the RESP into which property is transferred from another plan.
Registered Education Savings Plan (RESP)
An Education Savings Plan (ESP) that has been registered with the Canada Revenue Agency (CRA). It is a savings vehicle used by individuals to save for children's post-secondary education. Once registered, the plan becomes the repository for education savings incentive payments made on behalf of an eligible beneficiary. Earnings in the plan are tax-sheltered. See Education Savings Plan (ESP).
RESP Account
For tracking purposes, a separate account that identifies the value of each monetary component of the RESP, including contributions, earnings, Canada Education Savings Grant (CESG), Canada Learning Bond (CLB), and/or the Alberta Centennial Education Savings Plan (Alberta Grant). Also previously referred to as a notional account.
RESP Promoter
See Promoter.
RESP Property
All of the assets in an RESP, including contributions, education savings incentives, and earnings.
RESP Provider
RESP promoters, trustees as well as service providers that are hired to process electronic transactions. See Promoter and Trustee.
Sending RESP Provider
The person or organization holding the RESP from which property is transferred to another plan.
Siblings-Only Family RESP
A family RESP in which every beneficiary is a brother or sister of every other beneficiary.
Specified Educational Program
A specified educational program means a program at a post-secondary school level that is not less than three consecutive weeks in duration and that requires each student taking the program to spend not less than 12 hours per month on courses in the program. See Qualifying Educational Program.
Specified Plan
A single beneficiary RESP under which the beneficiary is an individual who meets the conditions and is entitled to a disability tax credit until the end of the year that is the 31st year following the year in which the plan was opened. After the end of the 35th year following the year in which the plan was entered into, a specified plan must not permit another individual to be designated as a beneficiary under the plan.
Subscriber
The individual who enters into an RESP contract with an RESP promoter, and names one or more beneficiaries for whom he or she will make contributions. Typically, the subscriber is the child's parent or parents, but it can also be a grandparent, another family member, or a family friend. A beneficiary can also be the subscriber of their own RESP.
Termination Adjustment Transaction
Adjustment transactions, submitted by RESP Promoters when they terminate a contract, that inform the Canada Education Savings Program (CESP) of a shortfall (due to losses in the plan) in covering the total grant or bond liability of the contract. CESP must receive a repayment transaction due to contract termination (transaction type 21) for each termination adjustment transaction. See Transaction Type.
Transaction ID
A unique identifier assigned to each transaction by the RESP Promoter.
Transaction Type
The two-digit number following the Record Type (RT), which further categorizes the type of transaction submitted to the CESP System. See Record Type (RT).
Transfer Transactions
Transactions in which the transfer of funds from one RESP to another are recorded. They are reported to the CESP System as RT 400-19 (Transfer In) or as RT 400-23 (Transfer Out) records. See Record Type (RT).
Transferring RESP Provider
The person or organization holding the RESP from which property is transferred (to another plan).
Trustee
A trust company licensed in Canada to hold funds and hired by the RESP promoter to manage the RESPs funds. The trustee invests, administers and distributes the money deposited into the RESP as per the promoter's instructions. In some cases, the same organization acts as both promoter and trustee. See RESP Provider.

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Date Modified:
2011-11-29