The federal government says it will consider changes to the Registered Disability Savings Plan program that has already attracted 48,000 people in its first three years.
The plan offers generous funding under the Canada Disability Savings Grants program. Depending on your income, the government will match up 300% on the first $500 put in annually and 200% on the next $1,000 with a lifetime limit of $70,000.
“It is going according to plan. The RDSP is regarded as a major policy innovation in Canada. We are leading the world,” said Jim Flaherty, minister of finance. “We want to have a look at it now to make sure it is working as well as it should work.”
Mr. Flaherty said there have been “some challenges in some of the provinces” where the person applying has an intellectual disability with the issue being whether they need to have a guardian to enter into the plan.
“I’ve been working with my colleagues to fix that,” said the minister. “I have to tell you financial institutions stepped up to the plate on this because it’s not a money maker for them.”
Also on the table for review is the 10-year rule, which restricts when money can be taken out of the plan. Grants have to repaid if money is removed within a decade of being put in the plan.
Ottawa will also look at the issue of what happens to savings of a person who enters the plan but becomes no longer eligible. To be eligible you have to be claiming the disability tax credit.
The government will be accepting submissions until Nov. 4, 2011 and anyone can comment in writing.
gmarr@nationalpost.com
Garry Marr Oct 21, 2011 – 12:10 PM ET | Last Updated: Oct 21, 2011 2:07 PM ET
Reuters/Chris Wattie
Jim Flaherty, minister of finance, announces government is reviewing RDSP program