Video: Registered Disability Savings Plan application form and its annexes

Transcript

Application form and its annexes

In order to receive the Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB) complete the:

• application for the CDSG and/or CDSB
• Annex A - Joint holder (if applicable)
• Annex B - Primary caregiver (if applicable)

The application process to request the CDSG and the CDSB requires the participation of:

• the holder(s):
  • to select a participating financial organization (or issuer), designate a beneficiary, complete the application form and contribute
• the issuer:
  • to assist the holder(s) in completing the application form, the issuer must:
    • submit the transactions to request the CDSG and CDSB to Employment and Social Development Canada (ESDC), and
    • retain the original signed form and annexes on record

Avoiding common errors

For the application to be processed, issuers are required to verify that:

• information on the form and annexes are legible
• sections are completed correctly, and
• applicable declaration and consent sections signed

The beneficiary and holder information must be exactly as they appear at the Social Insurance Register (SIR).

Otherwise, it could result in the non-payment of the CDSG and the CDSB.

Completing the application form

The holder must complete each applicable section of the application for the CDSG and/or the CDSB, provide accurate information and sign section 4 (declaration and consent of the holder) in order to receive the CDSG and CDSB payments.

Guidance on how to complete each section of the form is in InfoCapsule #6.

Annex A - Joint holder

If there is more than 1 holder on a Registered Disability Savings Plan (RDSP), each additional holder must complete the Annex A - Joint holder and provide their consent to use and share their personal information.

Annex B – Primary Caregiver

The personal information of the primary caregiver (PCG) determines the family income for a particular year. We also use it, to validate the beneficiary’s residency and eligibility for the Disability Tax Credit (DTC).

Annex B is designed to collect the information required to determine the CDSG and CDSB entitlements for any year the beneficiary is under the age of 18. It is also used to determine any unused entitlements to the CDSG and the CDSB that the beneficiary may be entitled to under the carry forward measure for any period when they were 18 years of age or younger.

If at any time in the last 10 years, a beneficiary was under the age of 18, each PCG should complete an Annex B.

Beneficiary turning 18 years of age

By December 31 of the year the beneficiary turns 18, they are required to provide their consent in section 5 of the application form to use and share their own personal information in order to receive the CDSG and CDSB payments after the year in which they turn 18.

Otherwise, it will result in the non-payment of the CDSG and CDSB starting the year the beneficiary turns 19 years of age.

Don’t forget, once a beneficiary reaches 19 years of age, the family income used to determine the CDSG and CDSB entitlements is their family income reported and no longer the PCG’s.

If the beneficiary is not contractually competent, or contractual competency is in doubt, a qualifying family member, legal representative or agency should sign section 5 on behalf of the beneficiary.

When to complete the application form

An application for the CDSG and/or CDSB is completed:

• when opening an RDSP
• if a new RDSP is opened with another Issuer and an existing RDSP is transferred, and
• if the holder signed section 3 Declaration of refusal and changes their mind

Reasons for non-payment of the Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB)

If the Canada Disability Savings Program (CDSP) system rejects the transaction requests, the CDSG and/or CDSB will not be paid.

This means that the issuer will receive an Error file with a 4-digit error code indicating why the CDSP system rejected a transaction. The issuer will need to correct the error and resubmit the transaction. Appendix A of the RDSP provider user guide can help issuers understand and correct the error received.

Refusal reason

A refusal reason indicates why a transaction requesting CDSG or CDSB, which was successfully processed by the CDSP system, did not receive a full or partial CDSG or CDSB payment. The transaction-processing file specifies the refusal reasons.

To learn more about refusal reasons, consult Appendix B of the RDSP provider user guide.

Knowledge check

Time for a knowledge check.

1. When completing the application form to request CDSG and CDSB, the holder forgot to sign section 4 (declaration and consent). Can we process the application?
   1. yes
   2. no

Answer

The answer is:

• b. no - without consent, the Government of Canada cannot pay CDSG and CDSB