Knowledge Centre

Divisional Court Rules Annuity Payments Not Exempt From Income Support Calculations

Mitch Kitagawa and Brent Craswell
March 2015 Kelly Santini LLP, Ontario

Newton v Ontario (Director, Disability Support Program) (2014 ONSC 6006) – In 1980, Edmund Newton suffered head injuries when he was struck by a vehicle while riding his bicycle. He commenced an action, which settled for $60,000 in 1986. Newton used this settlement to purchase an annuity, which guaranteed him a stream of monthly payments for the rest of his life. In 1995, Newton applied and was approved for social assistance. He did not notify the Ministry of Community and Social Services about the money he was receiving through his annuity. It was not until 2007 that the Ministry became aware that Newton was receiving such payments.

Read more.

Comments are closed.