Transitional Assistance Program

The program’s final application period ended on August 31, 2009.

Applications are no longer being accepted.

Frequently Asked Questions

This page contains answers to questions about the Transitional Assistance Program.

• General
• Eligibility
• Employment Insurance
• Funding available
• Applying
• Payment
• Working after receiving funding
• Appealing

Q.  What is the purpose of the Transitional Assistance Program?

A.  The Transitional Assistance Program was created to assist older forest workers by providing them with the options of making the transition to work in other industries or retiring if they wish to do so.

Q.  For how long is the program in effect and when can I apply?

A. The program was announced in spring 2008 and had application periods in 2008 and 2009. The final application period ended on August 31, 2009.

Q.  Is it okay for me to resign once I have applied to the program?

A.  Not if you want to receive Transitional Assistance Program funding. If you voluntarily resign prior to being approved for program funding, you become ineligible.

Q.  How does the Transitional Assistance Program affect my eligibility for Employment Insurance (EI)?

A.  If you are receiving EI benefits, you will have these benefits stopped effective the date you choose as your resignation/retirement date. Since each case is unique, we strongly encourage you to contact your Service Canada centre or call the EI Telecentre at 1-800-206-7218 to clarify your situation before you apply. You will be entirely responsible for any EI benefits overpayments that may occur as a result of receiving Transitional Assistance Program funding.

Q.  How much money can an applicant get from the program?

A.  The maximum amount available to a worker is $35,000. See our Funding available  page for more information.

Q. If I have received or expect to receive a severance payment, will this affect my funding under the Transitional Assistance Program?

A. Yes. If your application is successful, any Transitional Assistance Program benefit you are eligible for will be reduced by the amount of your severance. You are required to advise us if you have received, or believe you may receive, severance.

Q.  When you are calculating my Transitional Assistance Program funding, do you round my age and years of service up or down?

A.  Neither is rounded; both are calculated in years and days.

Q.  What questions should I ask my pension plan administrator?

A.  We cannot provide you with pension or income tax advice, but you should be aware that receiving Transitional Assistance Program funding may affect these and other areas of your personal finances. We encourage you to discuss how Transitional Assistance Program funding might affect your personal finances with a professional financial advisor, union or family members.

Q.  Do I send in originals or photocopies of documents?

A.  Your application form and the signatures on it must be the original, while supporting documents like a birth certificate or passport should be photocopies. Please send us photocopies of all supporting documents, while keeping your originals in a safe place.

Q.  Why do I need my employer’s consent to apply?

A.  Your employer’s consent is needed to make sure your participation in the program does not create a skills shortage in the area.

Q.  Do I need my employer’s consent even if I’m laid off?

A.  Yes. This is because the program has been designed to make sure it will not create difficulties for our forest sector once market conditions improve.

Q.  What if the employer that laid me off has gone out of business?

A.  If your most recent employer is no longer in business, then you do not need to get their consent. You will need to provide a photocopy of your Record of Employment showing bankruptcy/permanent shutdown as well as documentation about severance.

Q.  What if I have difficulty getting my employer to provide their consent before the application deadline? What about delays in getting supporting documents?

A.  We cannot review and assess your application until it is complete, including the employer’s consent and supporting documents. We encourage you to do everything possible to get the employer’s consent by the deadline. Incomplete applications may not be considered.

Q.  What supporting documents do I need to send with my application?

A.  Three types of documents are required: identification, tax documents and documents proving how long you have been continuously employed in the forest sector.

Q.  Why do you ask for copies of my tax forms?

A.  We require you to submit recent tax forms because they show your sources of income. We need this information to determine whether you are eligible to receive Transitional Assistance Program funding.

Q.  What if my tax forms for one or both of the last two years show less than 65 per cent of my income came from the forest sector – but only because I was laid-off or terminated?

A. To take this into account, we ask applicants in this situation to also send us income tax documents for the two years immediately before their lay-off. If you feel you have experienced special circumstances such as these, please explain them to us in writing and we will review your situation and request any additional documents we may require to make a decision on your application.

Q.  Do I need to send you my income tax Notice of Assessment?

A.  Not at the time of application. If you are approved for funding and want some or all of your funding deposited directly into your RRSP or a spousal or common-law RRSP, then you will need to send us a copy of your 2008 income tax Notice of Assessment at that time.

Q.  Why do you ask for supporting documents going back to 1999? What if I haven’t kept any documents for that long?

A.  We ask for documents going back to 1999 from applicants who wish to maximize their funding under the Transitional Assistance Program by proving that they have been working continuously in the forest sector for the past ten years. We can only give you credit for up to ten years of continuous service if you provide us with documents showing this history. Some applicants may have a long-time accountant who can write a letter (on their professional letterhead) confirming their length of employment in the forest sector.

If you are unable to provide documentation going back to 1999, your application will be processed based on the number of years documented in your application.

Q.  If I apply successfully, when will I receive my money?

A.  Successful applicants will be able to choose whether to receive funds in November 2009, July 2010 or split between those two dates. See our Once you are approved page for more information.

Q.  What steps do I need to take after I have been approved for participation in the program?

A.  If you are successful in applying to the Transitional Assistance Program, you will be contacted in writing by program staff and asked to provide additional information. See the Once you are approved section of this web site for more information.

Q.  Does Transitional Assistance Program funding count as taxable income?

A.  Yes. This is one reason why some recipients choose to have some or all of their funding deposited directly into their Registered Retirement Savings Plan (RRSP) or spousal or common-law RRSP. You must have RRSP contribution room available to have that option. We strongly encourage you to get professional financial advice if you have questions about how Transitional Assistance Program funding may affect your taxes or other financial circumstances.

Q.  Is it possible for me to have Transitional Assistance Program funding considered to be a Retirement Allowance for tax purposes?

A.  No. The Canada Revenue Agency (CRA) has informed us that this is not possible.

Q.  Can I have some or all of the money deposited into my Registered Retirement Savings Plan (RRSP)?

A.  Yes, if you have contribution room available in your RRSP, or a spousal RRSP. If this is the case, you may choose to have some or all of your funds deposited directly into your RRSP or spousal RRSP. You will need to make a decision about this after your application is approved, and send us your current Notice of Assessment at that time. See our Once you are approved page for more information.

Q.  What happens if I receive a severance payment after applying to the program?

A.  If you think you may be receiving a severance payment, this must be indicated on your application. Since your acceptance of Transitional Assistance Program funding indicates that you have resigned your job, you should not receive any additional severance payments. If you do, you must contact us immediately, as you will be required to repay a portion of your Transitional Assistance Program funding.

Q.  Can I return to work with my former employer if they resume operations? Is there a penalty if I do that?

A.  If you resign to accept Transitional Assistance Program funding, you will not be able to work for your previous employer(s), for an affiliated company or on the same site for a period of 18 months. If you return after 18 months, it will be as a new employee with no seniority. If you go back to work for the same employer/contractor within 18 months, you will be required to repay all or part of the money received, with interest.

Q.  If my employer is permanently closed, and I accept Transitional Assistance Program funding, can I take a job within 18 months at the same location if the facility is restarted under new ownership?

A.  The Transitional Assistance Program would consider the new owner to be a successor employer. As a result, if you chose to return to work at the same location within 18 months of receiving funding from the program, you would need to pay back the funding.

You could work there after 18 months without needing to return any funding, although you would be starting as a new hire with no seniority.

Q.  If I accept Transitional Assistance Program funding, can I work as an employee or contractor for employers other than the company(ies) for which I previously worked within 18 months of receiving Transitional Assistance Program funding?

A.  For 18 months after receiving Transitional Assistance Program funding, you may not work for the same employer(s), or their affiliated companies, or any employer at a location where you worked during the previous 24 months.

Q.  What happens if my circumstances change and a year later I decide that I have to go back and work for my former employer?

A.  If your circumstances change and you can no longer follow the rules of the program, you should call Community Development Trust staff 1-877-238-8882 to discuss your situation. We will work with you to find a solution. This may involve paying back a portion of the Transitional Assistance Program funding you have received.

Q.  How do I appeal a decision I disagree with?

A.  If you believe we have made an error in assessing your application, you may appeal the decision within 30 days. Information on how to submit a written appeal is provided at the time you are informed of a program decision.

For more information about the Community Development Trust:

• 1-877-238-8882 from B.C. communities outside Victoria
• 250-387-5349 from Victoria
• email: cdt@gov.bc.ca