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Universitas is preparing to distribute compensations to the subscribers of RESPS

by

Alain Thériault

17 July 2019 13:30

Photo : Freepik

After the analysis of 18 000 files, Universitas says it is ready to distribute among its subscribers to 1.5 million dollars ($M), from its operating budget to mitigate the impact that would have been the cause of the easing in eligibility criteria for educational assistance payments (EAP) endorsed in December 2018.

Independent evaluator, Paul Vézina has analyzed the 18 000 records submitted by the customers of Universitas. KPMG has ensured the adequate allocation of the budget envelope of$ 1.5 Million, according to the criteria established by Mr. Vézina, a former judge of the superior Court and the Quebec Court of appeal.

Deadline of 31 August

Universitas has entrusted the distribution of the amounts to the subscribers to Collectiva, a firm specializing in the management of claims. “All customers registered will receive Collectiva, by email, an invitation to consult, online, the result of the analysis of their case,” said Universitas in a press release.

The decisions of Universitas communicated by Collectiva will be without appeal, and the underwriters will have until 31 August to accept them. They may have to wait until October 1st to receive the amounts.

Not for all

These are not necessarily all the subscribers whose records have been analyzed, which will receive an amount. “Although not all families are considered disadvantaged, which will provide a benefit based on the criteria identified by Mr. Vézina, every dollar of our financial commitment to us represents a further step in the achievement of the full potential of our children. We are convinced that the fruit of this approach will allow more relevant to look to the future, ” said Isabelle Grenier, president and chief executive officer of Universitas.

Customers had until April 30, 2019 to register for the mitigation program. Among the criteria, all the subscribers of a registered education savings plans (RESPS) collective were to be customers of Universitas and have subscribed to their group RESP (brand REEEFLEX or Plan UNIVERSITAS) to October 5, 2017. In addition, the beneficiaries of the RESP should not have withdrawn their three EAP December 31, 2017, on the eve of the entry into force of the easing.

A second vote after the growls

The clients had accepted almost unanimously the easing in a vote held in October 2017. Subsequently, the controversy had erupted, and had been widely reported in the media in terms of attrition : the easing had in some cases actually melt the exchanges of approximately 20 %. A decrease driven by a greater number of beneficiaries to share the plate of the RESP collective.

According to Isabelle Grenier, the easing had led to Universitas distribute$ 33 Million in addition to the student beneficiaries (see the edition of FlashFinance.ca April 8, 2019).

A second consultation was held that the acceptance of the vote, more tight, and that the participation rate had been higher. The result of this vote, Universitas had the enhanced $ 500,000 in its initial offer in mitigation.

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