Maturity Date On and Before July 31st, 2014

Understanding Your Maturity Options

When your child or beneficiary has made that important decision to either pursue post-secondary studies or consider other options, you will need to make some decisions regarding your Registered Education Savings Plan (RESP).

We're here to help make that process simple. Check out the maturity time resources available to ensure you make the best decision in relation to your goals.

Not sure which maturity options are available?
Click here to check out a video on plan maturity.

Have Questions?
Click here to access the maturity Q&A section.

Not sure if your desired post-secondary institution qualifies?
Click here to access the list of approved post-secondary institutions.

Want to fill out an online application for quick processing?
Click here to access your online account and complete the digital form.

Understanding Your Plan's Maturity

Typically, your plan's maturity date is on July 31st of the year your beneficiary turns 18 years old and is expected to start their first year of post-secondary studies. Depending on your document delivery preference of important updates, an information notice will be sent to you within 180 days prior to your maturity date, but no later than July 1st. This notice will invite you to login to your Subscriber Online account in order to guide and instruct you on the steps of the maturity process, as well as the forms to be completed by you and your beneficiary.

Before your maturity date, you must select an option that best suits your beneficiary's academic studies. There are 2 options available: the scholarship option and the self-determined option.

The Scholarship Option +

The Self-Determined Option +

Educational Assistance Payments (EAPs)

An educational assistance payment (EAP) is the payment your child receives from their RESP when they enroll in an approved post-secondary institution. The beneficiary will receive EAPs once a year in their 2nd, 3rd and 4th year of eligible studies, depending on the option selected and provided the beneficiary remains eligible. This payment consists of investment earnings and government grant money accumulated in their RESP.

Under both the Scholarship Option and the Self-Determined Option, EAPs consist of the following:

  • Income on principal,
  • Government grants, and
  • Income on government grants.

Additionally, under the scholarship option, EAPs also consist of attrition1. The Heritage Educational Foundation (the "Foundation") may also provide discretionary payments2 from the discretionary payment account to:

Top-up the EAPs; and/or

Return an amount equal to the sales charges, or a part thereof. If the Foundation decides to make a discretionary payment to return the sales charges, they are at 25%, 50% or 100% depending on the scholarship option chosen at maturity.

Example: If you had chosen "four year scholarship option" in 2012, Knowledge First returned 100% of the sales charges. If you chose "two year scholarship option" Knowledge First returned 25% of your sales charges.

Important: Pursuant to the Canada Revenue Agency (CRA) regulations, there is an annual EAP threshold limit of $23,460. If the total EAP is more than this amount, you or your beneficiary will be required to provide Knowledge First with proof of the beneficiary's educational expenses that meet or exceed the annual threshold limit in order to receive any remaining balance.

Please note that attrition1 and discretionary payments2 are not available under the self-determined option.

1. Attrition is the term that applies to the share of pooled income remaining in the Heritage Plans after any beneficiaries in the same group as your beneficiary do not qualify for payments. For those beneficiaries, the contributions less fees (or principal) are returned to the subscriber, but the income that was earned on the contributions less fees stays in the total asset pool to be shared by beneficiaries remaining in the pool. For further explanation on how attrition applies to your plan, please see your Heritage Plans prospectus.

2. Discretionary payment is not guaranteed. You must not count on receiving a discretionary payment. The Heritage Educational Foundation decides if it will make a payment in any year and how much the payment will be. If the Foundation makes a payment, you may get less than what has been paid in the past. You may also get less than what the Foundation pays to the beneficiaries in other groups.

Important information for clients not pursuing post-secondary education:

  • You can substitute the beneficiary of your plan as long as no EAPs have been paid or forfeited and provided certain conditions are met.
  • Under the self-determined option, you can request the return of your contributions less fees and you can request your accumulated income payment (AIP) to be paid to you or to the joint subscriber (if applicable) subject to the following 2 different taxes:
    1. your regular income tax, and
    2. an additional federal tax of 20% (or 12% federal and 8% provincial tax for residents of Quebec).

To avoid incurring any taxes, you can transfer up to $50,000 of income to your or your spouse's* Registered Retirement Savings Plan (RRSP), providing there is RRSP contribution room to do so and you satisfy all Accumulated Income Payment (AIP) requirements.

What is the criteria to request the earnings as an Accumulated Income Payment (AIP) +

Ready to fill out your maturity application?
Click here to access your online account and complete the digital form.

*Your spouse must be named as the joint subscriber to your RESP.

Understanding Your Maturity Options – Q & A

When does my plan mature? +

Will someone contact me when my plan matures? +

What are the options for maturity? +

What is a recognized college or university? +

How do I know which option suits my beneficiary's needs? +

What do I need to provide to release my funds? +

What important timelines should I be aware of? +

What type of program can my beneficiary take that is eligible for EAPs? +

If I want to change my beneficiary, what are the rules? +

For more information please contact our Customer Service Team at 1.866.269.0639 or by email at