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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 Income payable to Jill's Estate
(see Loss of Income Section)

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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