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Human Resources and Skills Development Canada

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InfoCapsules for RESP Providers

InfoCapsules for
RESP Providers

Getting Started

Incentives and Transactions

18 - Calculating the EAP

Educational Assistance Payments (EAPs) include a portion of the following amounts in a Registered Education Savings Plan (RESP): accumulated RESP earnings, Canada Education Savings Grant (CESG), Canada Learning Bond (CLB), and provincial incentives paid under designated provincial programs such as the Alberta Centennial Education Savings Plan Grants (Alberta Grants).

EAP = RESP Earnings + CESG + CLB + (Alberta Grant + Other Provincial Incentives *)

* Provincial Incentives Paid Under Designated Provincial Programs

Lifetime Incentive Limits Payable per Beneficiary in EAPs

CESG: Each beneficiary has a lifetime limit of $7,200 in accumulated CESG amounts paid in EAPs.

CLB: Each beneficiary can attract up to $2,000 in CLB payments made into RESPs. However, in EAPs, a beneficiary can use only CLB amounts that were paid specifically for that beneficiary.

Alberta Grants: While the Alberta Grants provides up to $800 per beneficiary, there is no lifetime Alberta Grants EAP limit per beneficiary.

Other Provincial Incentives: Lifetime EAP limits, if applicable, are determined by each corresponding designated provincial program.

Three-Step Process

  1. Determine if the RESP includes accumulated earnings in order to select the required formulas
  2. Determine the RESP amounts available to the beneficiary in an EAP
  3. Calculate EAP portions to use from each of these available amounts

Values used to Calculate an EAP

  1. Amount of the EAP
  2. Balance in the beneficiary's CLB account of the RESP immediately before the EAP is made
  3. Fair market value of the property held in connection with the RESP immediately before the EAP is made
  4. Total of all contributions made to the RESP before the EAP is made that have not been withdrawn
  5. Total in all CLB accounts of the other beneficiaries under the RESP immediately before the EAP is made
  6. Balance in the CESG account of the RESP immediately before the EAP is made
  7. Total of all amounts paid into the RESP under a designated provincial program (total of all provincial incentive account balances in the RESP immediately before the EAP is made)

Understanding the Proportion Component of EAP Formulas

Promoters must use the Canada Education Savings Regulations EAP formulas which take the same proportion from each amount available for an EAP. Once this proportion has been calculated for one incentive, the same value can be applied to each of the other available amounts in the EAP. In order to better understand EAP formulas, the table below show only the proportion component used in EAP formulas. Proportion values depend on whether or not the RESP has earnings.

Proportion to take from all available amounts

  • If the RESP has earnings: A / (C – D – E)
  • If the RESP has no earnings: A / (B + F + G)

Example Calculations

For more information and examples of EAP calculations for various scenarios, see the RESP Provider User Guide, chapter 3-2, Post-Secondary Education and Educational Assistance Payments (EAPs), at the following Web site address: RESP Provider User Guide

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Date Modified:
2012-01-05