Disability Savings Plan: Research and Strategic Planning

Summary

The goal of this project was to develop a workable social policy framework that would create a new partnership between families, people with disabilities, government and the private sector. PLAN worked to implement a National Disability Investment Fund, and a Registered Disability Savings Plan (RDSP) to help Canadians with disabilities and their families save for the future. PLAN is an advocacy network for individuals and families dealing with disabilities. They identified several concerns facing people with disabilities as they age. According to PLAN, 75% of people with disabilities receive care from their families without government support, but for the first time in history, many people with disabilities will begin outliving their parents and primary caregivers. This project intended to assess the receptivity of policy makers for Planned Lifetime Advocacy Network’s (PLAN) social policy framework for reforms.

Grant Outputs

Disability Savings Plan: Policy Milieu and Model Development – http://www.caledoninst.org/Publications/PDF/559ENG.pdf

This report considers a variety of policy reforms that would allow for a long term savings plan for disabled family members. It examines the structural difficulties families and disabled people encounter when trying to save for their futures. It proposes three potential tax based reforms that could support families in saving including (1) Modified RRSP rules, (2) a Disability Savings Plan (tax-deferred) or (3) a Disability Savings Plan (tax-prepaid). The report also recommends a National Disability Investment Fund that could better support low-income disabled people and their families than the previously mentioned tax-based reforms.

Disability Savings Plan: Contribution Estimates and Policy Issues – http://www.caledoninst.org/Publications/PDF/558ENG.pdf

This report examines the implications of implementing a Disability Savings Plan that would encourage family savings for people with disabilities. It concludes that the eligibility rules and attractiveness (in terms of tax breaks and benefits) of the plan would play a substantial role in determining its success. It recommends implementing a disabilities savings plan, similar to the existing Registered Education Savings Plan, which would include favourable tax measures to encourage private contributions in order to help provide for the long term care of disabled individuals.