HRSDC GRANTS OVERVIEW

GRANT TYPE	DEFINITION	ELIGIBILITY	LIMITS
GRANT TYPE	DEFINITION	ELIGIBILITY	Annual	Lifetime
Basic Canada Education Savings Grant	Payment of 20% on contributions made on or after January 1, 1998 in respect of an eligible beneficiary, up untill the end of the calendar year in which the beneficiary turns 17.	Valid SIN Resident of Canada Special conditions apply for beneficiaries who are 16 and 17 years old. * (see below)	$ 500 Up to $1000 if there Carry Forward Room is available**	$ 7,200 (Basic & Additional Grants combined)
Additional Canada Education Savings Grant	Payment above the Basic CESG of 10% or 20% on the first $500 or less of annual contributions made on or after Jan 01, 2005 depending on total net family income.	Same as above Payable only into Individual Plans or Sibling-Only Family Plans Family income must not exceed $81,452 for 2009	$ 100 per bemeficiary per year	$ 7,200 (Basic & Additional Grant together)
Canada Learning Bond	Incentive directed to children born on or after Jan 01, 2004 whose primary caregiver is in receipt of the National Child Benefit Supplement. It is not dependent on contributions	Children born on or after Jan 01, 2004 Valid SIN Resident of Canada Payable only to Individual Plans or Sibling-only Family Plans Primary caregiver eligible to receive the National Child Benefit Supplement	$500 first year $100 for the following 15 years if the eligibility requirements are met.	$ 2,000
Alberta Centennial Education Savings Grant or ACES	Incentive directed to children born or adopted in Alberta on or after Jan 01, 2005 or attending Alberta Schools at the age of 8, 11 & 14 on or after Jan 01, 2005.	Children born on or after Jan 01, 2005 or adopted on or after Jan 01, 2005 Children aged 8, 11 and 14 years on or after Jan 01, 2005 and attending an Alberta school Payable only to Individual Plans or Sibling-only Family Plans No contribution is required to receive the $500 Grant A minimum $100 contribution is required within the year immediately preceding each application to receive the $100 Grant	$500 Grant paid at birth $ 100 Grant paid at the age of 8, 11 and 14	$ 800

New Quebec Education Savings Incentive (QESI)

The Quebec Education Savings Incentive (QESI) is a program made available for RESP clients that reside in Quebec.

The incentive, initially announced with the 2007 Quebec provincial budget, consists of a basic grant of up to $250 that is paid directly into a Registered Education Savings Plan (RESP) opened with a financial institution or with another RESP provider that offers the QESI. Dependent on family income, up to an additional $50.00 per year can be added to the basic grant amount.

Under the provisions of Revenu Quebec, participating institutions will be able to retroactively apply for the grant for a total of up to 3 years. Mackenzie is upgrading its systems to accept this grant and we anticipate being able to do so in 2010. At that time, Mackenzie will submit all eligible contributions to Revenu Quebec.

* Contributions for 16 and 17 Year-old beneficiaries
Special CESG eligibility conditions apply to contributions made for 16 and 17 year old beneficiaries:

A minimum of $100 in annual RESP contributions must have been made in any four years (and not withdrawn) before the end of the calendar year the beneficiary turned 15.

OR
A minimum of $2,000 in RESP contributions must have been made (and not withdrawn) before the end of the calendar year the beneficiary turned 15.

** Grant room and Carry Forward
As of 1998, grant room (unused Basic CESG Amounts) accumulates for a child until the end of the year in which the child turns 17.

1998 to 2006: $ 400 per year is added to the grant room for each eligible child since 1998 (or since birth if the child was born after 1998)
2007 or later: $ 500 is added to the grant room for each eligible child per year since 2007(or since birth if the child was born after 2007).

To find out how much carry-forward room is available for your child, click here.

Important Plan Dates to remember

31 years contribution limit – maximum age for a beneficiary to receive contributions within a family plan
35 year lifespan – Maximum number of years a plan can remain open. Plan needs to be terminated by the end of its 35th year.

Grant Approval Process

Mackenzie (as promoter) processes the Grant application on behalf of the client through an electronic exchange of information with HRSDC.

At the beginning of each month all RESP transactions processed in the previous month are collected and sent to HRSDC for validation and processing.

HRSDC validates and processes the data submitted and will respond back by the end of the month.

Example:

Timeframe applicable for Basic Grant, Additional Grant or Provincial Grant.

January 15, 2009
Purchase of $ 400.00 in ABC Fund
Grant requested - Basic

Feb 5, 2009
MFC submits all January transactions to HRSDC

Feb 5-25
HRSDC
Validation and approval process

Feb 26
HRSDC responds to MFC submitted transactions with grant and/or reject/refusal records

Feb 27
Grant posted to client account - $ 80.00 posted to client account (43 days)

The maximum time frame for receipt of grant, Bond etc, provided all documentation and information is accurate and accepted by HRSDC is 65 days.

Timeframe applicable for Canada Learning Bond

Initial application of Canada Learning Bond follows the same timeline of the other Grants. Subsequent installments of Canada Learning Bond are paid in August thereafter, if the eligibility requirements are met.

Mutual funds sponsored by Mackenzie Financial Corporation are only qualified for sale in the provinces and territories of Canada. Please read a fund’s prospectus and speak to an advisor before investing.