Loss of Support
Example
- Claimant:
Jill - Female, aged 38.
- Background:
Jill was a single mother of two children, to whom she provided
support. She resided in Ontario and always worked in retail
sales. She died due to her HCV infection on July 1, 2000.
Her two children are Approved Dependants and are entitled
to be compensated for their loss of support. Below is how
the LOS calculation would be done:
|
Step
1
|
Determine
Jill's date of death. |
July
1, 2000
(see table below) |
|
Step 2
|
Select Jill's three
consecutive highest income years.
NOTE! Consider
every year predating her date of death.
|
1987,
1988, 1989
(see table below) |
|
Step 3
|
Calculate pre-claim gross income, which is
the average Earned Income earned during the 3 years
chosen above.
NOTE! Even though
Jill earned an average of $31,167 in the years 1995,
1996 and 1997, the legal guardian of the Approved
Dependants selected the three consecutive years
1987, 1988 and 1989 (average income $25,833) because
the average income for those three years, when multiplied
by the Pension Index ratio for 1988 was greater.
The
average is multiplied by the Pension Index ratio
of 1988 (the middle year).
|
$ 25,833.00
$36,051.00
after indexation
(see
table below)
|
|
Step 4
|
Calculate
the post-claim gross income for every year postdating
Jill's date of death. Since Jill died in the year
2000, the legal guardian of the Approved Dependants
may submit a claim for the post-claim year 2001. |
Post-claim
year = 2001 |
|
Step 5
|
The legal guardian
of the Approved Dependants completed Form GEN
10.
The legal guardian
also submitted all necessary financial/income
tax documentation confirming the pre-claim
income and post-claim income.
|
T1
Income Tax returns & Notices of Assessment |
|
Step 6
|
The Administrator completes
loss of support calculation in order to determine
amount payable = Jill's
annual loss of net income minus 30% for the year
2001.
Note that since
Jill became disabled in the year 1998, her Estate
may claim compensation for Loss of Income for the
period starting on her date of disability and ending
on the date of her death.
|
See
below |
Pre-claim
Gross Income Calculation
|
Year
|
Status
|
Income
|
Average pre-claim gross
income |
Pension Index
|
Average pre-claim gross
income in 2001 dollars |
|
|
|
A |
B |
(A/B) X 112.9 |
| 1985 |
employed |
17,000 |
N/A |
71.7 |
N/A |
| 1986 |
employed |
22,000 |
21,333 |
74.5 |
32,329 |
| 1987
|
 |
HCV Infected |
25,000
|
24,333 |
77.6
|
35,402 |
| 1988
|
employed
|
26,000
|
25,833 |
80.9
|
36,051 |
| 1989
|
employed
|
26,500
|
26,500
|
84.2
|
35,533
|
|
1990
|
employed
|
27,000
|
27,000
|
88.3
|
34,522
|
|
1991
|
employed
|
27,500
|
27,500
|
92.5
|
33,565
|
|
1992
|
employed
|
28,000
|
28,167
|
97.9
|
32,483
|
|
1993
|
employed
|
29,000
|
29,000
|
99.7
|
32,840
|
|
1994
|
employed
|
30,000
|
29,833
|
101.5
|
33,184
|
|
1995
|
employed
|
30,500
|
30,500 |
102.0
|
33,759
|
|
1996
|
employed
|
31,000
|
31,167 |
103.9
|
33,867
|
|
1997
|
employed
|
32,000
|
N/A |
105.5
|
N/A |
|
1998
|
date of disability |
20,000
|
|
107.4
|
|
|
1999
|
disabled
|
15,000
|
|
108.4
|
|
|
2000
|
date of death |
7,000
|
|
110.1
|
|
|
2001
|
deceased
|
0
|
|
112.9
|
|
|
Loss
of Income and Support Calculation
| |
Post-Claim
Years
|
| |
|
Loss
of Support payable to the legal guardian of the Approved
Dependants
|
| |
1998
|
1999
|
2000
|
2001
|
| Pre-claim
Income Calculation |
|
Average
pre-claim gross income (before indexation adjustment)
|
$25,833
|
$25,833
|
$25,833
|
|
|
Average
pre-claim gross income (adjusted for indexation)
|
|
$34,615
|
$35,158
|
$36,051
|
|
Gross
income limit, adjusted for indexation
|
|
$300,000
|
$304,704
|
$312,452
|
|
Pre-claim
gross income
|
$34,295
|
$34,615
|
$35,158
|
$36,051
|
|
Minus:
Ordinary deductions (income tax, CPP, EI)
|
($8,880)
|
($8,732)
|
($8,699)
|
($8,544)
|
|
Pre-claim
net income
|
|
$25,883
|
$26,459
|
$27,507
|
| |
|
|
|
|
| Post-claim
Income Calculation |
|
Actual
employment or self-employment income
|
$20,000
|
$15,000
|
$7,000
|
0
|
|
Other
benefits received by HCV Infected Person's dependants
as a result of the death of the person
|
0
|
0
|
$2,000
|
$4,000
|
| Post-claim
gross income |
$20,000
|
$15,000
|
$9,000
|
$4,000
|
|
Minus:
Ordinary deductions (income tax, CPP, EI)
|
($4,127)
|
($2,545)
|
($497) |
(0)
|
|
Post-claim
net income
|
|
$12,455
|
$8,503
|
$4,000
|
| |
|
|
|
|
| Calculation
of Amounts Payable |
|
|
|
|
|
Loss
of income for compensation purposes @ 100% (subtract
Post-claim Net Income from Pre-claim Net Income)
|
|
|
$17,956
|
$23,507
|
|
Amount
payable to Jill's Estate for Loss of Income
|
$9,542
|
$13,428
|
$17,956
|
Not
Applicable
|
| Reduce
loss of income amount payable to allow for the deceased's
personal living expenses @ 30% |
Not
Applicable
|
Not
Applicable
|
Not
Applicable
|
$16,455
|
|
Amount
payable to legal guardian of Jill's Approved Dependants
for Loss of Support
|
-
|
-
|
-
|
$16,455
|
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|
