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Canada Education Savings Program - RESP Provider User Guide
RESP Provider User Guide
2.0 Education Savings Incentives
4.0 Appendices
Appendix F: Understanding Refusal Reasons
The Canada Education Savings Program (CESP), Human Resources and Skills Development Canada (HRSDC), is responsible for administering education savings incentives available to eligible beneficiaries of Registered Education Savings Plans (RESPs). These education savings incentives, which are paid into an RESP by CESP, currently include:
- The Canada Education Savings Grant (Basic CESG)
- The Additional Canada Education Savings Grant (Additional CESG)
- The Canada Learning Bond (CLB)
- The Alberta Centennial Education Savings Plan Grants (Alberta Grants)
This appendix explains the Refusal Reasons (RR) received in response to financial requests for grants and/or bonds.
Background Information
This appendix provides information to assist RESP Providers understand Refusal Reasons. For Additional technical information, consult the Interface Transaction Standards (ITS).
What is a Refusal Reason?
Refusal Reasons indicate why transactions requesting grant or bond, which met all formatting rules, did not receive full grant or bond payment. Each Refusal Reason has a corresponding single-character code.
How are Refusal Reasons Reported to Promoters?
The CESP system reports Refusal Reasons in the following two locations of the record type RT 900:
- Transaction position 67 for Basic CESG, CLB, and Alberta Grants
- Transaction position 174 for Additional CESG transactions
How does a Refusal Reason differ from an Error Code?
If the CESP system cannot process an RESP transaction sent by a promoter, due to an error in the transaction information, the CESP system will reject the transaction. In these cases, the promoter will receive a corresponding RT 800 transaction with an Error Code indicating why the CESP system did not process the transaction. Promoters must investigate Error Codes and resubmit new transactions with the corrected information.
Transactions successfully processed by the CESP system will not generate Error Codes. However, a processed transaction will receive a Refusal Reason in the RT 900 transaction if the CESP does not pay the full amount of grant or bond for a transaction.
Using this appendix
Each incentive has its own set of Refusal Reasons. This appendix lists the following information for each incentive:
- Refusal Reason Code
- ITS description for each Refusal Reason
- A detailed explanation for each Refusal Reason
- How to resolve or better understand what caused the refusal
Contact the CESP if the information provided in this appendix does not answer your questions about specific refusal reasons.
Transaction Records
The following transaction records are referenced in this appendix for each incentive:
Refusal Reasons: Recorded in the RT 900 found in the Transaction Processing Report (.PRO) returned to the promoter at the end of each reporting period.
Basic CESG: Canada Education Savings Grant request submitted by promoter through an RT 400-11 transaction record. Refusal Reasons will be recorded in position 67 of the RT 900 in the .PRO file.
Additional CESG: Additional Canada Education Savings Grant requests submitted by promoters along with the Basic CESG request through an RT 400-11 transaction. In addition, PCG SIN, Surname, Given Name, and Type information are required to request the Additional CESG. Refusal Reasons are recorded in position 174 of the RT 900 in the .PRO file.
CLB: Canada Learning Bond request submitted by promoter through a RT 400-24 transaction record. Refusal Reasons are recorded in position 67 of the RT 900 in the .PRO file.
Alberta Grants: Alberta Centennial Education Savings Plan Grant request submitted by promoter through a RT 400-25 transaction record. Refusal Reasons are recorded in position 67 of the RT 900 in the .PRO file.
Refusal Reason 1 - Annual limit exceeded
Basic CESG
Refusal Reason 1 - The Basic CESG room available to the beneficiary has been paid out for the calendar year that the contribution falls into.
Resolution: None required as each beneficiary is entitled to $500 of Basic CESG annually ($1,000 if there was carry forward) and they have received the maximum amount of Basic CESG for the year.
Additional CESG
Refusal Reason 1 - A contribution requesting Additional CESG is refused for one of the following reasons:
- The PCG reported on the contribution has a high income level as per CRA therefore no Additional CESG can be paid to the beneficiary.
- The PCG reported on the contribution has either a mid (10%) or low range (20%) income level and the beneficiary has received all the Additional CESG for that year based on the income level.
Resolution: None required as the beneficiary has received all the Additional CESG to which they are entitled for the year.
CLB
Refusal Reason 1 - The beneficiary has already received the CLB payment for the benefit year.
Resolution: None required as the beneficiary has already received their CLB payment for the benefit year the request falls into.
Alberta Grants
Refusal Reason 1 - The Alberta Grant has already been paid to the beneficiary for the age installment range that the request falls into.
These age installment ranges are as follows:
- 0 – 6 years = $500
- 8 – 14 years = $100
- 11 – 17 years = $100
- 14 – 20 years = $100
Resolution: None required as the beneficiary has already received the Alberta Grant payment for the age installment range that the Alberta Grant request falls into.
Refusal Reason 2 - Lifetime contribution limit exceeded
Basic CESG
Refusal Reason 2 - The total amount of contributions for a beneficiary has reached or exceeded the $50,000 contribution limit. Any subsequent contributions made after this limit is reached will be refused grant.
Resolution: The Promoter should verify that the total contribution amounts submitted for the beneficiary does not exceed $50,000 and that no contribution amounts were reported incorrectly. If there is a discrepancy in the contribution amounts, reverse the incorrect contribution and resubmit the correct contribution. If all contribution amounts are correct then contact CESP for more information.
Additional CESG
Refusal Reason 2 - The total amount of contributions for a beneficiary has reached or exceeded the $50,000 contribution limit or greater. Any subsequent contributions made after this limit is reached will be refused Additional CESG.
Resolution: The Promoter should verify that the total contribution amounts submitted for the beneficiary does not exceed $50,000 and that no contribution amounts were reported incorrectly. If there is a discrepancy in the contribution amounts, reverse the incorrect contribution and resubmit the correct contribution. If all contribution amounts are correct then contact CESP for more information.
Refusal Reason 3 - Age of Beneficiary
If there is a discrepancy in the age/birth date of the beneficiary generating this Refusal Reason, contact CESP.
Basic CESG
Refusal Reason 3 - The transaction date of the contribution is later than December 31st in the year that the beneficiary turned 17.
Resolution: None required as the beneficiary is only entitled to receive grant up until the end of the year in which they turn 17.
Additional CESG
Refusal Reason 3 - The transaction date of the contribution is later than December 31st in the year that the beneficiary turned 17.
Resolution: None required as the beneficiary is only entitled to receive grant up until the end of the year in which they turn 17.
CLB
Refusal Reason 3 - An active CLB request is being assessed for a payment for a new benefit year and the beneficiary's birth date has been updated to a date before January 1, 2004.
Resolution: Contact the Subscriber to verify the beneficiary's birth date.
Alberta Grants
Refusal Reason 3 - The transaction date of the request when compared to the beneficiary's birth date does not fall into any of the following age ranges:
- 0 – 6 years
- 8 – 14 years
- 11 – 17 years
- 4 – 20 years
Resolution: Verify the transaction date of the Alberta Grant request and what Alberta Grant age range the request was for.
Refusal Reason 4 - PCG or Beneficiary information not matched with CRA info
Additional CESG
Refusal Reason 4 - The PCG and/or beneficiary information submitted is not matched with the corresponding information at CRA on the contribution requesting Additional CESG.
Note: The following fields are sent to CRA for matching: PCG SIN, PCG given name, PCG surname, beneficiary given name, beneficiary surname, beneficiary birth date.
Resolution: Contact the Subscriber to request that the PCG call CRA to confirm all relevant information is up to date and that it is the same information provided to the promoter. Once the Subscriber has confirmed the CRA information is up to date, submit a PCG information transaction for the financial transaction which was refused using the correct PCG or reverse and resubmit the original transaction if the PCG information transaction has not been implemented by the Promoter.
Note: At the end of each month, an excel report showing the fields that did not match with CRA and resulted in this refusal reason is sent to each promoter.
CLB
Refusal Reason 4 - The PCG and/or beneficiary information submitted is not matched with the corresponding information at CRA on the CLB request.
Note: The following fields are sent to CRA for matching: PCG SIN, PCG given name, PCG surname, beneficiary given name, beneficiary surname, beneficiary birth date.
Resolution: Contact the Subscriber to request that the PCG call CRA to confirm all relevant information is up to date and that it is the same information provided to the promoter. Once the Subscriber has confirmed the CRA information is accurate, resubmit the CLB request with the correct PCG information.
Refusal Reason 5 - Specimen Plan not eligible
If there are other concerns or discrepancies in the specimen plan eligibility information, contact CESP.
Basic CESG
Refusal Reason 5 - The specimen plan named on the contribution is not eligible to receive grant.
Resolution: Contact CRA to determine the status of this specimen plan.
Additional CESG
Refusal Reason 5 - The specimen plan named on the contribution is not eligible to receive grant.
Resolution: Contact CRA to determine the status of this specimen plan.
CLB
Refusal Reason 5 - An active CLB request is being assessed for a payment and the specimen plan named on the request is no longer eligible to receive CLB.
Resolution: Contact CRA to determine the status of this specimen plan.
Alberta Grants
Refusal Reason 5 - The specimen plan named on the request is no longer eligible to receive the Alberta Grant.
Resolution: Contact CRA to determine the status of this specimen plan.
Refusal Reason 6 - Transaction requested no grant
If there are any concerns or discrepancies in the information submitted, contact CESP.
Basic CESG
Refusal Reason 6 - The grant requested flag is set to "No" for a contribution.
Resolution: Verify if grant was supposed to be requested. If yes, reverse the contribution and resubmit the contribution with the grant requested flag set to "Yes".
Additional CESG
Refusal Reason 6 - The four PCG information fields are not provided for a contribution requesting Additional CESG.
Resolution: Verify if Additional CESG was supposed to be requested on the contribution. If yes, either add the missing PCG information on a PCG information transaction or reverse and resubmit the contribution transaction with the missing PCG information.
CLB
Refusal Reason 6 - The grant requested flag is set to "No" which is considered a stop CLB request.
Resolution: Confirm that this request was supposed to stop CLB. If not, re-submit the CLB request with the grant requested flag set to "Yes".
Refusal Reason 7 - Failed 16/17 year rule
If there is any discrepancy in the contributions by the client, contact CESP.
Basic CESG
Refusal Reason 7 - A contribution falls into a year in which the beneficiary turns 16 or 17 and the beneficiary does not meet the conditions for the 16/17 rule as per the CESP system. These conditions are:
- contributions totaling $100 in four different years.
or
- a total of $2,000 in lifetime contributions up to and including the beneficiary's 15th year.
Resolution: Contact the Subscriber to determine if the beneficiary does in fact meet the 16/17 rule based on contributions made into the RESP prior to 1998. If the Subscriber attests to these pre 1998 contributions then submit a proof of eligibility report to the CESP program in order to have the 16/17 rule waived.
Instructions for the proof of eligibility report can be found in the following bulletin:
CESP Information Bulletin CESP-2006-010 sent on June 20, 2006
Additional CESG
Refusal Reason 7 - A contribution falls into a year in which the beneficiary turns 16 or 17 and the beneficiary does not meet the conditions for the 16/17 rule as per the CESP system. These conditions are:
- contributions totaling $100 in four different years.
or
- a total of $2,000 in lifetime contributions made up to and including the beneficiary's 15th year.
Resolution: Contact the Subscriber to determine if the beneficiary does in fact meet the 16/17 rule based on contributions made into the RESP prior to 1998. If the Subscriber attests to these pre 1998 contributions, submit a proof of eligibility report to the CESP in order to have the 16/17 rule waived.
Instructions for the proof of eligibility report can be found in the following bulletin:
CESP Information Bulletin CESP-2006-010 sent on June 20, 2006Refusal Reason 8 - CLB will not be paid for this benefit year
If there are any discrepancies in the income levels reported for the year, resulting in this Refusal Reason, contact CESP.
CLB
Refusal Reason 8 - The beneficiary is not eligible for a CLB payment for the benefit year for which the request was made.
Resolution: Contact the Subscriber to advise that CLB will not be paid for that benefit year because the beneficiary is not in care of a PCG receiving the National Child Benefit Supplement (NCBS). The PCG should contact CRA at 1-800-387-1193 (English) or 1-800-387-1194 (French) for further information if required. If updated NCBS information is received from CRA for that benefit year, then the CLB will automatically be paid.
Refusal Reason 9 – Other
Basic CESG
Refusal Reason 9 - The contribution amount is below the minimum amount of $0.03, which is required to attract grant.
Resolution: None required as contributions must be greater than $0.03 in order to attract grant.
Additional CESG
Refusal Reason 09 - The contribution amount is below the minimum amount of $0.03, which is required to attract grant.
Resolution: None required as contributions must be greater than $0.03 in order to attract grant.
Refusal Reason A - Specimen Plan not approved for CLB
CLB
Refusal Reason A - An active CLB request is being assessed for a new benefit year and the specimen plan submitted on the CLB request is no longer approved for CLB in the CESP system.
Resolution: This refusal reason is assigned when a CLB installment for a new benefit year is being assessed. The specimen plan reported on the CLB request is no longer approved for CLB and the Promoter should contact the CESP to confirm.
Refusal Reason B - Invalid Beneficiary
Basic CESG
Refusal Reason B - The beneficiary's SIN reported on the contribution has become invalid in the CESP database because it is linked to another SIN.
Resolution: Contact the Subscriber and determine if the beneficiary has been issued a new SIN. If a new SIN has been issued, submit a beneficiary information transaction record to ensure the beneficiary's new SIN has been associated to the specimen plan. The contribution must then be reversed and re-submitted using the new valid SIN.
Additional CESG
Refusal Reason B - The beneficiary's SIN reported on the contribution has become invalid in the CESP database because it is linked to another SIN.
Resolution: Contact the Subscriber and determine if the beneficiary has been issued a new SIN. If a new SIN has been issued, submit a beneficiary information transaction record to ensure the beneficiary's new SIN has been associated to the specimen plan. The contribution must then be reversed and re-submitted using the new valid SIN.
CLB
Refusal Reason B – The beneficiary's SIN reported on the CLB request has become invalid in the CESP database because it is linked to another SIN.
Resolution: Contact the Subscriber and determine if the beneficiary has been issued a new SIN. If a new SIN has been issued, submit a beneficiary information transaction record to ensure the beneficiary's new SIN has been associated to the specimen plan. A new CLB request with the new SIN must also be submitted in order to continue receiving the CLB.
Alberta Grants
Refusal Reason B - The beneficiary's SIN reported on the Alberta Grant request has become invalid in the CESP database because it is linked to another SIN.
Resolution: Contact the Subscriber and determine if the beneficiary has been issued a new SIN. If a new SIN has been issued, submit a beneficiary information transaction record to ensure the beneficiary's new SIN has been associated to the specimen plan. A new Alberta Grant request with the new SIN must also be submitted.
Refusal Reason C - Request not designated to attract CLB for the Beneficiary
CLB
Refusal Reason C - CLB request is no longer active in the CESP system.
Resolution: Submit a new CLB request to restart the CLB payments. Restarting the CLB payments will also depend upon satisfying other business rules such as income levels, age of beneficiary etc.
Refusal Reason D - Late transaction
If unable to submit within this deadline due to exceptional circumstances, contact CESP.
Basic CESG
Refusal Reason D - The transaction date of the contribution transaction requesting Basic CESG is more than 3 years before the date in the Header Record (001) of the submitted transaction file.
Resolution: None
Explanation: The promoter must successfully process Basic CESG requests with the CESP system within 3 years. Transactions that are submitted after 3 years will be processed but grant requests will be refused.
Additional CESG
Refusal Reason D - The transaction date of the contribution transaction requesting Additional CESG is more than 3 years before the date in the Header Record (001) of the submitted transaction file.
Resolution: None
Explanation: The promoter must successfully process Additional CESG requests with the CESP system within 3 years. Transactions that are submitted after 3 years will be processed but grant requests will be refused.
CLB
Refusal Reason D - The transaction date of the CLB request transaction is more than 3 years from the date in the Header Record (001) of the submitted transaction file.
Resolution: The promoter must submit another CLB request for the beneficiary using a transaction date that is within 3 years of the file submission date.
Explanation: The promoter must successfully process CLB requests with the CESP system within 3 years. Transaction requests submitted after 3 years will be processed but requests for bond will be refused.
Alberta Grants
Refusal Reason D - The transaction date of the Alberta Grant request is more than 3 years before the date in the Header Record (001) of the submitted transaction file.
Resolution: The promoter must submit another Alberta Grant request for the beneficiary using a transaction date that is within 3 years of the file submission date.
Explanation: The promoter must successfully process Alberta Grant requests with the CESP system within 3 years. Transaction requests submitted after 3 years will be processed but requests for Alberta Grants will be refused.
Refusal Reason E - Lifetime limit exceeded
Basic CESG
Refusal Reason E - The beneficiary has received the maximum lifetime allowable amount of CESG (Basic and Additional combined) of $7,200.
Resolution: None required as the beneficiary has received all grant they are entitled to receive.
Additional CESG
Refusal Reason E - The beneficiary has received the maximum lifetime allowable amount of CESG (Basic and Additional combined) of $7,200.
Resolution: None required as the beneficiary has received all grant they are entitled to receive.
CLB
Refusal Reason E - The beneficiary has received the maximum lifetime allowable CLB based on the number of benefit years they were entitled to, up to a maximum of $2,000.
Resolution: None required as the beneficiary has received all CLB payments they are entitled to receive.
Alberta Grants
Refusal Reason E - The beneficiary has received the maximum lifetime allowable Alberta Grants up to a maximum of $800.
Resolution: None required as the beneficiary has received all Alberta Grant payments they are entitled to receive.
Refusal Reason F - Anti-churning rule violation
Additional CESG
Refusal Reason F - The beneficiary named on the contribution requesting Additional CESG has been tainted. A beneficiary becomes tainted when a grant repayment for a contract the beneficiary is associated to, is submitted with a transaction date on or after March 22, 2004, with a repayment reason of contribution withdrawal and a grant amount is greater than zero.
Resolution: Contact the Subscriber to determine if they have previously withdrawn contributions from an RESP which may have caused the beneficiary to become tainted.
Refusal Reason G - Contribution transaction date earlier than January 1, 2005
Additional CESG
Refusal Reason G - A contribution requesting Additional CESG has a transaction date that is earlier than January 1, 2005.
Resolution: Additional CESG is only paid on contribution transactions dated on or after January 1, 2005. If a mistake was made regarding the transaction date of the contribution, reverse the previous contribution and resubmit the new contribution with the correct transaction date.
Refusal Reason H - PCG information is missing
Additional CESG
Refusal Reason H - One or more of the following fields do not contain information: PCG SIN, PCG surname, PCG given name and PCG type.
Resolution: The PCG SIN, given name, surname, and type are required to receive the Additional CESG. If any of this information was not provided, use an update PCG information transaction to add the missing information or reverse the contribution and re-submit with the missing information.
Refusal Reason I - PCG does not pass enhanced Mod 10 check
Additional CESG
Refusal Reason I - The PCG SIN does not pass the Modulus 10 check (see ITS. Appendix C for definition of Modulus 10).
Resolution: Verify that the PCG SIN is 9 digits in length and if required, contact the Subscriber to advise that the PCG SIN provided is not correct. If a new PCG SIN is provided then use either an update PCG information transaction to change the information or reverse the contribution and re-submit with the new information.
Refusal Reason J - Contract is not an individual/sibling only contract
If there are any errors in the designation of the contract, contact CESP.
Note: Requests for CLB (RT 400-24) or Alberta Grants (RT 400-25) will be rejected with an Error Code 1010, if the contract reported on these transactions does not have the individual/sibling only flag set to "Yes".
Additional CESG
Refusal Reason J - The contract is not designated as an individual/sibling only contract.
Resolution: To receive Additional CESG, the contract reported on the contribution transaction must have the individual/sibling only flag set to "Yes" in the CESP system. To set this flag to Yes, submit a contract information transaction with the individual/sibling only flag set to "Yes". Then reverse and resubmit the previously refused contribution transaction to receive the Additional CESG.
Refusal Reason K - $100 contribution not met
Alberta Grants
Refusal Reason K - The Alberta Grant request does not have at least $100 in contributions in the year prior to the transaction date of the request.
Resolution: Contact the Subscriber to notify them that the $100 in contributions has not been met and they must make the required contribution in order to receive the Alberta Grant. Once this has been done, a new Alberta Grant request must be submitted.
Refusal Reason L - PCG SIN or Agency BN not matched by CRA
If there are any concerns or discrepancies in the information, contact CESP.
Additional CESG
Refusal Reason L - CRA is unable to find the PCG SIN or Agency BN information provided on the contribution transaction requesting Additional CESG.
Resolution: Contact the Subscriber to notify them that the PCG's SIN or Agency's BN reported on the contribution transaction does not match the information on file with CRA. Confirm the correct PCG information with the Subscriber and use either an update PCG information transaction to change the PCG information or reverse the contribution transaction and then re-submit with new PCG information.
CLB
Refusal Reason L - CRA is unable to find the PCG SIN or Agency BN reported on the CLB request.
Resolution: Contact the Subscriber to notify them that the PCG's SIN or Agency's BN reported on the CLB request does not match any PCG SINs or Agency BNs on file with CRA. If a correct PCG is obtained, submit a new CLB request.
Refusal Reason M - PCG custody not confirmed by CRA
If there are any other concerns or discrepancies in the information, contact CESP.
Additional CESG
Refusal Reason M - The PCG reported on the contribution requesting Additional CESG is not the designated PCG for the beneficiary during the month and year of the transaction date, according to CRA.
Resolution: Contact the Subscriber to notify them that according CRA, the PCG reported on the contribution does not have custody of the beneficiary in the year and month the contribution transaction falls. The PCG should then contact CRA to verify the information they have on record. If new PCG information is provided, use either an update PCG information transaction to change the PCG information or reverse the contribution transaction and re-submit with new PCG information.
CLB
Refusal Reason M - The PCG reported on the CLB request is not the designated PCG for the beneficiary for at least one month during the benefit year in which the transaction date of the CLB request falls into, according to CRA.
Resolution: Contact the Subscriber to notify them that according to CRA, the PCG reported on the CLB request does not have custody of the beneficiary in the benefit year that the CLB request falls into. The PCG should then contact CRA to verify the information they have on record. If required, resubmit the CLB request or if new PCG information is provided, then submit a new CLB request.
Refusal Reason N - SIN has been flagged by SIR
If there are any other concerns or discrepancies in the information, contact CESP.
Basic CESG
Refusal Reason N - The SIN reported on the contribution requesting CESG has been flagged as "not useable" by the Social Insurance Registry (SIR).
Resolution: Contact the Subscriber and verify the status of the beneficiary's SIN. If the SIN has been cancelled and a new SIN has been issued, submit a beneficiary information transaction record to ensure the beneficiary's new SIN has been associated to the specimen plan. Once this has been completed, reverse the previous contribution transaction and re-submit the contribution using the new SIN.
Additional CESG
Refusal Reason N - The SIN reported on the contribution requesting Additional CESG has been flagged as "not useable" by the Social Insurance Registry (SIR).
Resolution: Contact the Subscriber and verify the status of the beneficiary's SIN. If the SIN has been cancelled and a new SIN has been issued, submit a beneficiary information transaction record to ensure the beneficiary's new SIN has been associated to the specimen plan. Once this has been completed, reverse the previous contribution transaction and re-submit the contribution using the new SIN.
CLB
Refusal Reason N - The SIN reported on the CLB request has been flagged as "not useable" by the Social Insurance Registry (SIR).
Resolution: Contact the Subscriber and verify the status of the beneficiary's SIN. If the SIN has been cancelled and a new SIN has been issued, submit a beneficiary information transaction record to ensure the beneficiary's new SIN has been associated to the specimen plan. Once this has been completed, submit a new CLB request.
Alberta Grants
Refusal Reason N - The SIN reported on the Alberta Grant request has been flagged as "not useable" by the Social Insurance Registry (SIR).
Resolution: Contact the Subscriber and verify the status of the beneficiary's SIN. If the SIN has been cancelled and a new SIN has been issued, submit a beneficiary information transaction record to ensure the beneficiary's new SIN has been associated to the specimen plan. Once this has been completed, submit a new Alberta Grant request.
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