New terms and conditions, Grants for Payments of Past Losses to Individuals Program

Introduction

These terms and conditions for an Indigenous Services Canada (ISC) grant authority applies to compensation for past losses of treaty annuities made to individuals established in settlement agreements between First Nations and the Government of Canada led by Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC).

Every year the Government of Canada administers treaty annuity payments through ISC to Indigenous peoples registered under the Indian Act entitled to them through membership in First Nations that have signed historic treaties, Robinson treaties and numbered treaties 1 to 11, with the Crown. In general, treaty annuities consist of $4 or $5 cash payments made directly to individuals at more than 300 treaty payment events held in First Nations communities and urban centers both on and off reserve. Some treaties include additional provisions of $15 or $25 for band councilors and chiefs, a triennial clothing payment or yearly payments for ammunition and twine. Treaty provisions are to be provided in perpetuity and any individual annuities that are not collected during a particular year will continue to accrue until collected.

In addition to their symbolic importance to First Nations signatories, treaty rights are protected by section 35 of the Constitution Act, 1982 and thus, honouring the treaty agreements is a constitutional obligation on the part of the Crown. ISC is the department responsible for honouring the Crown's money-related treaty promises, which include most treaty annuities.

These benefits have remained fixed at the amounts outlined in the original text of the treaties, dating back to 1850. ISC and CIRNAC are embarking on a path to modernize annuity payments as an opportunity to advance the nation-to-nation relationship and reconciliation with First Nations signatories to the historic treaties.

Legal and policy authority

Constitution Act, 1982, s. 35

Department of Crown-Indigenous Relations and Northern Affairs Act, S.C. 2019, c. 29, s. 337

Department of Indigenous Services Act, S.C. 2019, c. 29, s. 336

Indian Act, R.S.C., 1985, c. I-5

Purpose, program objective and expected results

The purpose of the grant authority is to allow ISC to disburse settlement funds in a timely manner to eligible individuals as set out in CIRNAC-negotiated settlement agreements.

This aligns with the Specific Claims Program of which the primary purpose is to provide financial compensation to First Nations in exchange for legal certainty for all Canadians regarding First Nations' legally-based historic claims against Canada concerning the management of their lands and assets as well as the fulfilment of certain treaty obligations.

The primary objective of the grant authority is to support Canada's settlement agreements pertaining to treaty annuities compensation for past losses as quickly, and with as much collaboration as possible, in light of the overall policy objectives of reconciliation and discharging the federal government's outstanding lawful obligations to First Nations and within a timeframe of 3 years.

This initiative aligns with the 2023 to 2024 ISC departmental result, Indigenous communities have governance capacity and support for self-determination and the 2023 to 2024 CIRNAC departmental result, past injustices are recognized and resolved. It also aligns with the Government of Canada's Results and Delivery Charter by improving relationships and outcomes with Indigenous peoples.

The planned results are measured by the following performance indicator: percentage of payments made to eligible individuals following a negotiated settlement agreement where First Nations request ISC to administer payments.

Eligibility

Eligible recipients include individuals, pursuant to the Indian Act, that meet criteria set out in settlement agreements achieved by Canada with First Nations that award monetary compensation to First Nations. Individual means those individuals who are entitled to receive annuities pursuant to historic treaties.

Type and nature of eligible expenditures

Payments will be made further to settlement agreements for compensating past treaty annuity losses negotiated between Canada and First Nations. The settlement agreement between each First Nation will specify the compensation amounts and eligibility criteria. Negotiations will aim to reach an agreement on the amount of compensation owed by Canada as a result of:

• updating historical annuity amounts already paid
• underpayments, including non-payments and late payments of the non-updated annuity amounts for individual annuities, chief's annuities, councilors' annuities, the clothing allowance and ammunition and twine payments

Total Canadian government funding and stacking limits

Total government assistance for the same purpose and eligible expenditures shall not exceed 100% of the eligible expenditures.

Method for determining the amount of funding

The grant amount is determined through a final or interim settlement agreement between Canada and the Indigenous group in accordance with a cabinet-approved mandate.

Maximum amounts payable

The maximum amount payable will vary in accordance with settlements negotiated between Canada and the respective eligible recipients. The total settlement awarded to each First Nation is negotiated separately between the Crown and the First Nation and amounts to be paid to individuals are at the sole discretion of each individual First Nation. As a result, an exemption to this section of the Policy on Transfer Payments has been provided by the Treasury Board.

Basis on which payments will be made

Eligible individuals must apply using the approved application form customized for this particular purpose. The applicant will be required to provide valid government-issued identification. Payments will be made by cheque or direct deposit.

Payments are made in accordance with the terms and conditions detailed in negotiated agreements or other cabinet-approved mandates. Compensation payable to individuals will be made pursuant to the terms of the settlement agreement. Payments will be made following receipt of release and indemnity from the individual.

For a grant up to $250,000, the department has full discretion on whether to pay the grant in a lump sum or to pay it in instalments. While individual grants are not expected to exceed $250,000, any payments over $250,000 will be paid in a single payment to meet the objective of the grant to support Canada's settlement agreements pertaining to treaty annuities compensation for past losses as quickly as possible.

Application requirements and assessment criteria

A custom application form for payment of past losses must be completed which includes signing an indemnity release. This is the form required to pay the past loss amount and treaty arrears balance. This custom form will change depending on the settlement agreement reached with the First Nation, for example, different releases required for those paid from date of birth rather than membership date. Authorization will be required from individuals to share forms with the First Nation.

The application must meet reasonable standards with respect to the type of information required.

Due diligence and reporting

ISC has procedures and resources for ensuring due diligence in approving these payments, verifying eligibility and entitlement and for managing and administering the program.

As part of the monitoring efforts, a Performance Measurement Strategy consistent with the requirements of the Treasury Board Policy on Transfer Payments will provide baselines and benchmarks from which Trust moneys, estates and treaty annuities' effectiveness in achieving its set purpose, objectives and outcomes can be evaluated.

Official languages

The department will ensure that any member of the public can communicate with and obtain available services from the department, in relation to this program, in accordance with part IV of the Official Languages Act. In addition, the department will ensure that the design and the delivery of programs respect the obligations of the Government of Canada as set out in part VII of the Official Languages Act.

Repayable contributions

Provisions for repayable contributions do not apply.

Redistribution of contributions

Provisions for redistribution of contributions do not apply.

Other terms and conditions

Not applicable.