Ministry of Social Development and Social Innovation

Annualized Earnings Exemption 2014

Introduced in January 2013, the Annualized Earnings Exemption (AEE) allows individuals on disability assistance to use their earnings exemption on an annual, instead of monthly, basis and without a monthly maximum. The intent of the AEE is to better assist individuals whose ability to earn fluctuates during the year, for example, due to medical conditions.

The 2014 AEE applies to earnings received from Jan. 1 to Dec. 31, 2014. The AEE limits for 2014 are:

  • $9,600 for families with one adult who has the Persons with Disabilities (PWD) designation
  • $12,000 for families with two adults, only one of which has the PWD designation, and
  • $19,200 for families where both adults have the PWD designation

These amounts are equivalent to 12 times the monthly exemption limit for the calendar year.

The AEE is being rolled out in phases. 2013 was the first year of the AEE and phase one has been extended for another year. The first phase of the AEE is focused on individuals on disability assistance whose past earnings pattern shows that they are most likely to benefit from an annualized earnings exemption. In 2014, the AEE was available to individuals who chose the AEE in 2013, and to those who met the following criteria at the time of selection:

  • Had the PWD designation for at least the past 12 months;
  • Received disability assistance in at least the past two consecutive months; and
  • In at least one of the past 12 months, had earnings over $500 for families with one adult with a PWD designation and over $750 for families where both adults have PWD designations.

Only those individuals or families who met the above criteria and replied by the deadline of Jan. 28, 2014 were able to choose the AEE for the 2014 calendar year. The choice to participate in the AEE for 2014 was optional and those who did not choose or did not respond to the AEE registration letter will have the monthly earnings exemption in 2014. This phased approach will allow the ministry to monitor the program and make necessary adjustments before opening the program up to all British Columbians on disability assistance.

Choosing the AEE, rather than monthly earnings exemption was optional. However, individuals and families who chose the AEE for 2014 are locked in for the full 2014 exemption year. The only exception to this is when an individual who has chosen the annualized exemption becomes part of a couple during the exemption year. If the person’s new partner had not chosen the annualized exemption, the couple will be asked to decide between the annual and monthly option.

More information can be found under the Frequently Asked Questions section.