InfoCapsule 7: Plan registration

From: Employment and Social Development Canada

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 (CDSG) and Canada Disability Savings Bond (CDSB) issuers. For general information, visit the RDSP section.

Consult this page frequently for newer versions. The following laws and regulations take precedence over information contained in InfoCapsules in the event of discrepancies:

  • Income Tax Act
  • Canada Disability Savings Act
  • Canada Disability Savings Regulations

Alternate formats

Preface

When opening a Registered Disability Savings Plan (RDSP), issuers should first ensure that the holder and the beneficiary of the plan meet the eligibility requirements before submitting the contract registration request.

Eligibility

To open an RDSP, a beneficiary must:

Submission

For a plan to be registered by the Canada Revenue Agency (CRA) the following three transactions must be sent together as a registration package and each must be successfully processed by the Canada Disability Savings Program (CDSP) system:

Validation

SIN

The CDSP system validates the SIN information of the beneficiary and the holder with the Social Insurance Register (SIR).

If the SIN information fails validation, the contract status will be set to “pending”.

DTC/residency

Once the SIN information passed SIR validation, the CDSP system will validate the beneficiary’s DTC eligibility and residency status with the CRA.

If the residency or DTC eligibility fails validation, the contract status will be set to “pending”.

Note: When the contract status is “pending”, this means that the contract is not registered; therefore, no Canada Disability Saving Grant (CDSG) and Canada Disability Savings Bond (CDSB) will be paid.

Corrections (if applicable)

SIN

Issuers may need to take action in order to bring the contract status from “pending” to “registration confirmed” by consulting their Error file (RT 801) to identify which transaction(s) is in error, apply corrective measures and resubmit all three transactions of the contract registration package, at the same time, including the ones that were successfully processed.

DTC/residency

No action can be taken on the issuer’s part other than relating the information to the holder and referring them to the CRA.

Note: The monthly Contract status file (RT 951) sent by the CDSP system should be consulted to confirm the status of each contract, as well as any updates to the contract status.

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