Canada Education Savings Program (CESP) - Glossary of Terms

Please refer to the Income Tax Act for formal definitions of RESP terms.

TERM	DEFINITION/DESCRIPTION
Accumulated Income Payment (AIP)	An accumulated income payment (AIP) is a payment to a subscriber from the income earned on money the subscriber has contributed to a Registered Education Savings Plan (RESP). As well, it also includes income earned on funds in the RESP from a Canada Education Savings Grant (CESG) or a Canada Learning Bond (CLB).
Beneficiary	The beneficiary of an RESP is usually a child, but can be any person named by the subscriber of an RESP to receive money for education after high school from the RESP in the form of Educational Assistance Payments (EAPs). Payments to a beneficiary are made according to the specific terms of the RESP.
CRA	Canada Revenue Agency.
Canada Education Savings Grant (CESG)	A Canada Education Savings Grant (CESG) is a grant offered by the Government of Canada to encourage parents, family and friends to save for a child’s education after high school. A CESG is paid by Human Resources and Skills Development Canada directly into an RESP in which the child is a named beneficiary.
Canada Learning Bond (CLB)	A Canada Learning Bond (CLB) is a Government of Canada grant to help modest-income families start saving for their child’s education after high school. A CLB is paid by Human Resources and Skills Development Canada directly into the RESP of a child who is a named beneficiary and whose parent or guardian is eligible to receive the National Child Benefit Supplement (NCBS).
Educational Assistance Payment (EAP)	An Educational Assistance Payment (EAP) is a payment from an RESP to help a beneficiary continue his or her education after high school. An EAP is made up of, the Canada Education Savings Grant (CESG), the Canada Learning Bond (CLB), and income earned on the money saved in the RESP.
Family RESP	These plans can have one or more beneficiaries. However, each beneficiary must be connected by blood or adoption to each living subscriber under the plan or have been connected to a deceased original subscriber, and be under 21 when named. Please note that contributions to this plan can only be made until a beneficiary turns 21.
Group RESP	Group plans are operated on a pooling principle where the beneficiary named under a contract by a subscriber will receive Educational Assistance Payments when enrolled in a qualifying program, but if the beneficiary fails to qualify for payment, the earnings are distributed among other beneficiaries of the same age who do qualify. Contributions to a Group plan are calculated by the Foundation's actuary. The amount and frequency of these contributions stay the same as long as the beneficiary has not attained 18 years of age.
HRSDC	Human Resources and Skills Development Canada.
Individual RESP	An individual RESP is a plan with only one beneficiary. That beneficiary may or may not be related to the subscriber and can be over 21 when named a beneficiary. Since subscribers can open plans for themselves, a subscriber can also be the beneficiary of an individual RESP. Contributions to this type of plan can be made up to 22 years after the plan is established.
Net Family Income	Net family income is the net income of the beneficiary’s family used to determine eligibility for the Canada Child Tax Benefit. Check your Canada Child Tax Benefit notice to find out your net family income.
Qualifying Educational Program	A qualifying educational program is a course of study that lasts at least three weeks in a row, with at least 10 hours of instruction or work each week. A program at a foreign educational institution must last at least 13 weeks. Qualifying educational programs include apprenticeships, and programs offered by a trade school, CEGEP, college or university.
Registered Education Savings Plan (RESP)	A Registered Education Savings Plan is a special savings plan that can help you, your family, or your friends save for education after high school. RESPs are registered by the Government of Canada to allow savings for education to grow tax-free until the person named in the RESP enrolls in education after high school.
RESP Provider	An RESP provider is any person or organization offering a Registered Education Savings Plan (RESP) to the public. RESP providers include most financial institutions, such as banks and credit unions, as well as group plan dealers and financial service providers.
Primary Caregiver	The individual who receives the Canada Child Tax Benefit payment each month. It is usually the child’s mother. A primary caregiver can also be the department, agency or institution that receives a special allowance payable under the Children's Special Allowances Act.
Custodial Parent / Legal Guardian	Custodial Parent or Legal Guardian is an individual, department, agency, or institution that has the legal right to make decisions affecting a child's interests, and the responsibility of taking care of the child.
Subscriber	A subscriber is a person who opens an RESP and may make contributions to that RESP on behalf of an individual named as a beneficiary.

Note, unless otherwise provided, terms contained in this website have the meaning ascribed to them in the Canada Education Savings Act.