New Application Form - Questions & Answers
Disclaimer: RDSP issuers
The information contained on this page is technical in nature and is intended for Registered Disability Savings Plan (RDSP), Canada Disability Savings Grant (grant) and Canada Disability Savings Bond (bond) issuers. For general information, visit the RDSP section.
- CDSP/ PCEI -2014/15-003B-200
- New Application Form
The following Questions and Answers provide further guidance on the use of the new Application for Canada Disability Savings Grant (grant) and/or Canada Disability Savings Bond (bond).
Q1. Why has so much of the personal information on the holder and beneficiary been removed on the new form?
A1. An application for grant and bond requires a Registered Disability Savings Plan (RDSP) to be set up (or at least the process to register the contract must have already begun). Contract registration requires the collection of all the personal information. It is redundant to ask for the same information on both applications. Cross-referencing the RDSP contract number and social insurance/business number is sufficient to identify the correct RDSP into which to deposit grant and/or bond, if eligible.
Default to apply for both grant and bond
Q2. Will the holder need to check the boxes to indicate which incentive they wish to apply for?
A2. No. The form has been changed so that both the grant and bond are applied for unless the holder indicates in Section 3 that they do not want to apply for one of them.
Q3. Why is the information about joint holders and primary caregivers no longer on the main application form?
A3. The main application form was streamlined and designed to collect the required information that is needed on all applications for grant and bond. Annexes are used for the extra information that may not apply in all cases.
For example, a 30-year old beneficiary opening a plan will not have a joint holder and only their family income is used to determine grant and bond amounts. As a result, this holder does not need either of the two annexes.
Qualifying family members
Q4. Can the Qualifying Family Member (QFM) sign the application form to provide consent on behalf of the beneficiary?
A4. Yes. However, a beneficiary should provide consent to use, share and disclose their personal information whenever possible - even where there is doubt regarding the beneficiary's contractual competency. In cases where the issuer and the QFM are of the opinion that the beneficiary lacks the capacity to provide this consent, the QFM will be permitted to provide consent on behalf of the beneficiary.
Q5. If an agency is the holder, will they need to complete all the annexes as well?
A5. If an agency is the holder, it is unlikely that there will be a joint holder, in which case, Annex A would not be needed. However, if you encounter a situation where there is (or may be) a joint holder with an agency, please contact Employment and Social Development Canada.
Agencies will, however, need to complete Annex B in order for bond to be paid and for the highest matching rate for grants to be paid on any contributions made if the beneficiary is 18 years of age or under at the time of the application (or was 18 years or under during any part of the ten-year period (starting in 2008) prior to the application).
Primary caregiver - Individual
Q6. Will a separate Annex B be needed for every primary caregiver? Will a separate Annex B be needed for every year that a person was a primary caregiver?
A6. In order to calculate the amount of unused entitlement for a beneficiary for the last ten years (starting in 2008), the family income for each of these years needs to be determined.
When a beneficiary is 18 years of age or under at the end of the year, it is the family income of the primary caregiver that is used. With changes in custody, there may be different individuals that are/were the primary caregiver.
ESDC requires the consent of each of the primary caregivers in this ten-year period in order to access and use the information held by the Canada Revenue Agency to determine the family income.
Every primary caregiver for this ten-year period needs to be identified. We will use information holdings from the Canada Revenue Agency to determine which years (and income amounts) apply to each primary caregiver. Thus, a separate Annex B is not required for every year that an individual was a primary caregiver.
However, if there is a change in the primary caregiver, the holder will need to identify the new primary caregiver and an Annex B will need to be completed for that person.
Primary caregiver - Agency
Q7. Will a separate Annex B be needed for every primary caregiver? Will a separate Annex B be needed for every year that the agency was a primary caregiver?
A7. The beneficiary may be in the care of an agency for all or a portion of the time when they were under 18 years of age in the last 10 years (starting in 2008).
If there was more than one agency responsible for the care of the beneficiary over this period of time, each agency needs to be identified.
Although a separate Annex B is not required for each year the agency cared for the child, they will need to attest whether a payment was made in respect of the beneficiary under the Child Special Allowances Act for at least one month in any of these years. In respect of such years, the beneficiary will be entitled to the maximum bond and the highest matching rate for grants on any contributions for those years.
Consent of a minor beneficiary
Q8. Does a beneficiary under the age of majority still need to sign Section 5?
A8. In most cases the holder is the legal guardian for the beneficiary and the consent obtained from them is all that is needed.
When the beneficiary turns 18 years of age
Q9. What happens when a beneficiary turns 18 years of age?
A9. The age of majority differs from province to province. Issuers should have policies in place to guide their staff in this regard.
The RDSP specimen plan will provide clarity as to whether the beneficiary has to replace or be added as a holder when they reach the age of majority. Annex A can be used to add the beneficiary as a holder for an existing plan.
When the beneficiary turns 19 years of age
Q10. What happens when a beneficiary turns 19 years of age?
A10. Starting in the year the beneficiary turns 19 years of age, it is the family income of the beneficiary (and their spouse) that is used instead of the primary caregiver's family income.
In order to pay bond in February of the year the beneficiary turns 19 years of age, ESDC needs to be able to determine the correct family income and needs the beneficiary's consent to access their personal information to do so. If this consent has not been obtained, the bond cannot be paid and the grant matching rate will only be 100% of the contribution.
Where there is an existing plan, it is recommended that the issuer obtain the beneficiary's consent by December 31st of the year the beneficiary turns 18 years of age.
If the previous form (HRSDC EMP 5463) was used to apply for the grant and/or bond originally, we suggest that issuers use Section 5 of the new form to obtain this consent. If the new form was used, Section 5 of the original application can be signed by the beneficiary with the current date of signature identified.
Consent of an adult beneficiary
Q11. Does a beneficiary who has reached the age of majority need to sign Section 5?
A11. If there is a legal representative appointed, they would sign on behalf of the beneficiary.
In the majority of cases, there is no legal representative and no doubts have been raised regarding contractual competency and, so, the beneficiary signs on their own behalf.
In cases where there is no legal representative appointed but doubts have been raised regarding the beneficiary's contractual capacity, it is expected that a reasonable enquiry is undertaken to determine if the beneficiary has the capacity to provide consent. In other words, even though they may not be contractually capable, the beneficiary may be able to understand that their personal information is going to be shared and used to determine any grant or bond they may be entitled to. Whenever possible, the beneficiary should sign on their own behalf.
In cases where there is doubt about an adult beneficiary's capacity to provide informed consent, the qualifying family member should sign on behalf of the beneficiary.
Questions on this Questions and Answers document should be directed to Employment and Social Development Canada by email at email@example.com or by calling 1-866-204-0357.
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