11.2 — Overpayments due to excess assets

December 2021

Summary of policy

• There are prescribed asset limits for a benefit unit
• An overpayment that results from excess assets cannot be greater than the difference between the asset limit permitted and the value of the assets owned
• No person is eligible for income support unless they meet specific eligibility criteria
• An amount provided to an Ontario Disability Support Program (ODSP) recipient in excess of entitlement is an overpayment

Legislative authority

Sections 5(1), 14(1), and 15(1) of the ODSP Act
Sections 27(1) and 51(3) of the ODSP Regulation

Summary of directive

This directive provides an overview of how overpayments are established as a result of excess assets.

Intent of Policy

To ensure that an overpayment due to excess assets does not exceed the difference between the allowable maximum assets and the recipient's total assets.

Application of policy

Standards

If a recipient’s assets exceed the maximum level as prescribed in the Regulation, an overpayment must be calculated.
The overpayment due to excess assets will not exceed the difference between the allowable maximum assets and the recipient’s total assets.

Determining the Amount of the Overpayment

An overpayment will be calculated when the total value of assets is in excess of the allowable maximum. In order to determine the amount of the overpayment two calculations for the period in question must first be calculated (see examples below). The overpayment assessed will be based on the lesser of the two amounts resulting from the calculations.

The recoverable amount cannot be more than the difference between the allowable maximum and the total assets.

This policy applies to those ongoing recipients whose assets exceed the allowable amount only after income support is granted. In cases where an applicant is granted income support because they have undiscosed assets in excess of the allowable limit at the time of grant the overpayment would be calculated in the usual manner and the full amount of the income support paid would be recoverable.

Example 1

A single recipient receives $900 income support per month. The maximum value of assets permitted is $40,000. During the review, it is noted that the recipient’s balance for August was $44,100 and remained over the maximum asset level until December 15th, when the balance declined by $4,100 to the allowable asset limit of $40,000.

Calculation 1

Calculation 2

$44,100 - Assets for the period in question
$40,000 - Maximum allowable assets
$ 4,100 - Difference

In accordance with the Act and Regulation, the recoverable overpayment is $4,100 as it is the lesser of calculation 1 and 2.

Example 2

A recipient and his spouse receive income support of $245 per month. The maximum value of assets permitted is $50,000. During the review, it is noted that the recipient’s balance for July was $54,345 and remained over the maximum asset level permitted until October 15th when the balance declined to $45,000 which is under the allowable asset limit.

Calculation 1

Calculation 2

$54,345 - Assets for the period in question
$50,000 - Maximum allowable assets
$ 4,345 - Difference

In accordance with the Act and Regulation, the recoverable overpayment is $980 as it is the lesser of calculation 1 and 2.

Related directives