{"id":292803,"date":"2016-01-13T17:33:40","date_gmt":"2016-01-13T22:33:40","guid":{"rendered":"https:\/\/policyoptions.irpp.org\/2016\/01\/three-things-the-federal-government-can-do-to-improve-the-registered-disability-savings-plan-2\/"},"modified":"2025-08-28T15:24:45","modified_gmt":"2025-08-28T19:24:45","slug":"three-things-the-federal-government-can-do-to-improve-the-registered-disability-savings-plan-2","status":"publish","type":"post","link":"https:\/\/policyoptions.irpp.org\/fr\/2016\/01\/three-things-the-federal-government-can-do-to-improve-the-registered-disability-savings-plan-2\/","title":{"rendered":"Three things the federal government can do to improve the Registered Disability Savings Plan"},"content":{"rendered":"<p>Many of us in the disability community were pleasantly surprised when the <a href=\"https:\/\/www.liberal.ca\/files\/2015\/10\/A-new-plan-for-a-strong-middle-class.pdf\">Liberal party promised<\/a> to create a National Disabilities Act that would safeguard disability rights, reduce systemic barriers and establish a foundation of opportunity for those affected by disability.\u00a0 <a href=\"https:\/\/barrierfreecanada.org\/home\/\">Canada is an outlier<\/a> among developed nations for not having one \u2013 <a href=\"https:\/\/www.theglobeandmail.com\/globe-debate\/its-well-past-time-for-a-canadians-with-disabilities-act\/article25904732\/\">the U.S. has had theirs for 25 years<\/a> \u2013 so it could not arrive soon enough.<\/p>\n<p>But the federal Conservative government did make some positive contributions of their own for the disability community during their decade in power \u2013 most notably, <a href=\"https:\/\/www.cra-arc.gc.ca\/rdsp\/\">the Registered Disability Savings Plan (RDSP). <\/a><\/p>\n<p>The RDSP <a href=\"https:\/\/www.rdsp.com\/tutorial\/a-bit-of-history\/\">was the brainchild<\/a> of non-profit organization, PLAN and was championed by the late Finance Minister, Jim Flaherty, who made it a reality in the 2007 budget.\u00a0 Flaherty had first-hand experience with disability; <a href=\"https:\/\/www.thestar.com\/business\/personal_finance\/2012\/05\/27\/finding_jobs_for_disabled_canadians.html\">one of his sons<\/a> contracted encephalitis as an infant with lasting health consequences.<\/p>\n<p>The RDSP is Flaherty\u2019s legacy to Canadians with disability and it remains an important and valuable program \u2013 at least in theory.<\/p>\n<p>According to a <a href=\"https:\/\/www.parl.gc.ca\/Content\/SEN\/Committee\/412\/banc\/rep\/rep03mar14-e.pdf\">2014 study<\/a>, only about 15 percent of eligible Canadians take part in the program, meaning almost half a million eligible Canadians are losing out. With a <a href=\"https:\/\/www.cbc.ca\/news\/canada\/british-columbia\/autism-teens-residence-tsunami-care-lack-of-1.3309653\">wave of teens with autism<\/a> reaching adulthood in the coming years, helping families affected by disability help themselves has never been more important.<\/p>\n<p>So what is it and what needs to be done to make it work better for Canadians?<\/p>\n<p>The RDSP is a savings plan that helps parents and caretakers of those with a disability save for their loved one\u2019s long-term financial future with some financial contributions coming directly from the government \u2013 free money, in other words.<\/p>\n<p>There are two components to the RDSP in addition to personal contributions: a federal grant and a federal bond.\u00a0 The grant is based on family income and how much a family contributes privately to the RDSP.\u00a0 It can equal as much as $3,500 in contributions from the government each year.\u00a0 The bond is based solely on family income (those making less than $43,953) and can be as much as $1,000 in contributions from the government per year.<\/p>\n<p>Over the lifetime of an RDSP, an individual can receive as much as $70,000 from the federal grant, and if eligible, as much as $20,000 from the federal bond.<\/p>\n<p>So why are so few using the RDSP?<\/p>\n<p>In 2014, a <a href=\"https:\/\/www.parl.gc.ca\/Content\/SEN\/Committee\/412\/banc\/rep\/rep03mar14-e.pdf\">cross-party Senate Committee<\/a> undertook a study to answer this very question.\u00a0 It\u2019s time our new federal government dusted off the report and put some of the recommendations into action.<\/p>\n<p>Here are three quick ways the federal government can improve the RDSP and help families affected by disability now:<\/p>\n<ol>\n<li><strong><a href=\"https:\/\/www.parl.gc.ca\/Content\/SEN\/Committee\/412\/banc\/rep\/rep03mar14-e.pdf\">Establish an RDSP automatically<\/a> once an individual is eligible for Revenue Canada\u2019s Disability Tax Credit.\u00a0<\/strong><\/li>\n<\/ol>\n<p>When I initiated my son\u2019s RDSP, I was required to provide his Disability Tax Credit status, a Social Insurance Number, proof of age and residency in Canada.\u00a0 It\u2019s a lot of intimidating bureaucratic paperwork that could put off families who may have time, language or educational barriers.<\/p>\n<ol start=\"2\">\n<li><strong>In the meantime, raise the awareness and understanding of the RDSP program.<\/strong><\/li>\n<\/ol>\n<p>I regularly encounter families in the disability community who have never heard of the RDSP program or don\u2019t know how to initiate it.\u00a0 Others have told me they don\u2019t have the money to start one \u2013 unaware they\u2019d be eligible for free government bonds just for opening the account without requiring a penny of savings from them.<\/p>\n<p>The Senate report recommends the federal government should partner directly with advocacy groups to help spread the word. This makes good sense since it\u2019s often the front-line non-profit groups who are directly engaged with disability families and know best how to reach them and could help them with administrative hurdles.<\/p>\n<p>Another promising model is to have health practitioners work directly with their patients.\u00a0 Recently, a coalition of healthcare providers, researchers and community agencies based in <a href=\"https:\/\/ocfp.on.ca\/docs\/default-source\/poverty-tool\/patient-brochure-on-income-supports-2013.pdf?sfvrsn=2\">Ontario<\/a> and Manitoba have created a <a href=\"https:\/\/www.gov.mb.ca\/health\/primarycare\/providers\/povertytool.html\"><em>Get Your Benefits!<\/em><\/a> Toolkit to help healthcare workers improve the wealth \u2013 and thus the health \u2013 of their patients by helping them access income and other supports they may be entitled to.<\/p>\n<ol start=\"3\">\n<li><strong>Make it much easier for other family members and friends to contribute to an existing RDSP<\/strong><\/li>\n<\/ol>\n<p>This recommendation isn\u2019t in the Senate report, but it\u2019s one that comes from my own experience and from others I know in the disability community.\u00a0 If you have a disabled child, \u2018extra money\u2019 is not always easy to tuck away.\u00a0 But birthdays and other special events are an opportunity for loved ones of the child to contribute meaningfully to their future.<\/p>\n<p>Financial institutions should work with the federal government to find a much easier way for those who are not plan holders to contribute to an individual RDSP in small or significant amounts (in theory it is permitted now, but in practice, it is almost impossible in some plans).\u00a0 It takes a community to raise a child after all.<\/p>\n<p>The RDSP really is an excellent program and needed as much today as when it was created.\u00a0 The federal government just needs to give it wings to make it fly.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many of us in the disability community were pleasantly surprised when the Liberal party promised to create a National Disabilities Act that would safeguard disability rights, reduce systemic barriers and establish a foundation of opportunity for those affected by disability.\u00a0 Canada is an outlier among developed nations for not having one \u2013 the U.S. has [&hellip;]<\/p>\n","protected":false},"author":913,"featured_media":292801,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","ep_exclude_from_search":false,"footnotes":""},"categories":[],"tags":[],"article-status":[],"irpp-category":[],"section":[],"irpp-tag":[],"class_list":["post-292803","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Three things the federal 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