Video: Introduction to the Registered Disability Savings Plan

Transcript

Introduction

A Registered Disability Savings Plan (RDSP) is a long-term savings plan. It helps Canadians with severe and prolonged disabilities and their families save for the future:

• it is a contract between a holder and a financial organization
• all funds in the plan are solely for the beneficiary to use
• a beneficiary may only have 1 RDSP

Partners

Three main partners are responsible for the administration of the:

• Registered Disability Savings Plan
• Canada Disability Savings Grant (CDSG), and
• Canada Disability Savings Bond (CDSB)

They are:

• Employment and Social Development Canada (ESDC)
• the Canada Revenue Agency (CRA), and
• financial organizations

Employment and Social Development Canada

Within Employment and Social Development Canada, 3 entities play a part in administrating the CDSG and the CDSB.

The Canada Education Savings Program (CESP):

• provides the necessary system support for the effective administration of the CDSG and the CDSB
• enrols issuers
• develops and delivers training and compliance reviews
• provides client services to the public and issuers
• maintains the system necessary for the administration of the CDSG and CDSB, and
• manages payments of CDSG and CDSB

The Office for Disability Issues (ODI) is the program and policy authority for the CDSG and the CDSB. It:

• provides policy and program oversight through the interpretation of the Canada Disability Savings Act and the Canada Disability Savings Regulations
• undertakes engagement and communications activities, and
• develops and updates the agreements with Issuers and the forms necessary to administer the CDSG and CDSB

The Social Insurance Registration Office validates beneficiary and holder Social Insurance Number (SIN) information.

The Canada Revenue Agency

Within the Canada Revenue Agency, 2 directorates play a part in administrating the RDSP.

• The Registered Plans Directorate:
  • monitors contracts for compliance with RDSP rules
  • provides support to financial organizations and the public on questions related to the Income Tax Act
• The Benefit Programs Directorate:
  • determines eligibility for the Disability Tax Credit
  • provides ESDC with information related to residency and income for adult beneficiaries and primary caregivers

Financial organizations

Financial organizations include issuers, agents and service providers.

In terms of RDSP, CDSG and CDSB administration, some of the roles and responsibilities of the issuer include:

• offering RDSPs to the public
• obtaining beneficiary and holder information
• submitting requests for the CDSG and the CDSB
• receiving and depositing the CDSG and the CDSB, and
• processing withdrawals for the beneficiary

Knowledge check

Time for a knowledge check.

Who are the main partners responsible for the administration of the RDSP, the CDSG and the CDSB?

1. ESDC and issuers
2. ESDC, the CRA and issuers
3. the CRA and issuers
4. issuers