Chapter 15. RDSP Canada Disability Savings Program System

15.4.3.1 Reporting periods

The CDSP system processes files and pays grant or bond monthly.

Reporting periods extend from the first to the last day of the same month. The financial institution has 4 business days after the reporting period ends to submit files for processing. Financial institutions must not include any transactions that occurred after the last day of the reporting period.

For example, to be included in the August reporting period, the financial institution must finalize files by the 4th business day after August 31.

If ESDC receives files after the specified cut-off date, it will hold and process those files in the following month's processing cycle.

15.5.1.1 RT 101

During the processing of transactions, ESDC may send some or all of the following reports to financial institutions.

The error files (RT 801 and RT 851) indicate that transactions were not sent in accordance with format and validation requirements. The error file contains the transaction number, the error code, the name of the field, and flags from the SIR validation if applicable.

It is the financial institution's responsibility to make the corrections and resubmit the transactions for processing.

If the contract registration transactions were successfully processed, this will be indicated in the transaction processing file (RT 901) at the end of the month. These transactions include:

• contract information
• beneficiary information
• holder information

Every month, beneficiary and holder SINs are verified through SIR. SIR may report that a SIN is "usable", "unusable" or "linked" through the SIN usability file (RT 921).

The contract status file (RT 951) concerns all contract registration transactions and informs the issuer of the contract registration status.

The transfer information extract file (RT 971) reports to the receiving financial institution. It includes all successfully processed financial transactions from the prior RDSP once the transfer is completed. This file includes transactions that have been reported to the CDSP system for the contract of the relinquishing financial institution. It also includes transactions reported for earlier contracts that were transferred for the same beneficiary.

15.5.2.1 Step 1

To confirm the contract meets the conditions of registration, the CDSP system requires 3 separate transactions for each DSP. All 3 transactions must be sent as a package at the same time. Any of these RT transactions sent individually will not be processed.

• RT 101-01 contract information
• RT 101-02 beneficiary information
• RT 101-03 holder information

Each of these 3 transactions must be verified and processed successfully before it can be confirmed that the contract meets the conditions of registration.

Note: For more information about mandatory information required for each RT and TT, refer to the ITS on the ESDC page.

15.5.2.2 Steps 2 and 3

15.5.2.3 Step 4 and 5

15.5.2.4 Steps 6 to 10

15.6.1.1 Close a contract

To close a contract, the financial institution submits a RT 102-10 close contract transaction to the CDSP system.

Information needed to close a contract:

• the financial institution's contract number
• the reason why the RDSP is being closed:
  • the beneficiary has passed away
  • the beneficiary is no longer DTC-eligible
  • the RDSP is transferred to another financial institution
  • the plan is deregistered
• the date of the event requiring the closure of the contract
• the date the RDSP is closed

For more information on why a contract must be closed, refer to Chapter 8. Closing an RDSP.

15.6.1.2 Rename a contract

If a financial institution wishes to change the contract number or identifier of an established contract, the RT 102-11 rename contract is used.

Information needed to rename a contract:

• the new number given to the contract by the financial institution
• the original number given to the contract by the financial institution
• the date the contract was renamed

15.8.1.1 RT 401

After receiving financial transactions (RT 401) from the financial institution, ESDC may send the following reports: the error report (RT 801) and the severe error report (RT 851). These reports indicate transactions in error.

Toward the end of each processing period, ESDC sends financial institutions an e-mail informing them that the transaction processing file (RT 901) is ready to be downloaded. The report acknowledges all successfully processed transactions and may include:

• amounts of grant and bond payments
• confirmation of repayments
• refusal reasons
• date of payment
• transaction origin
• retirement savings and education savings rollover issues

15.8.2.1 Step 1

RT 401 is used by the financial institution to report all financial transactions and to request grant and bond payments. There are 2 RTs available for use:

• RT 401-01 contribution/grant request
• RT 401-05 bond payment request

15.8.2.2 Step 2

ESDC retrieves the submitted transactions, uploads them to the CDSP system and begins the validation process that includes formatting and business rules.

For more information, refer to Appendix A. Understanding RDSP error codes and Appendix B. Understanding RDSP refusal reasons.

15.8.2.4.1 DTC-eligibility and residency

The BPD at the CRA confirms the beneficiary's eligibility for the DTC.

It also checks if the beneficiary meets the Canadian residency requirements.

The transaction will receive a refusal reason if the:

• beneficiary is not DTC-approved
• beneficiary is not a resident of Canada

15.8.2.5 Step 5

ESDC sends files to the financial institution. The resulting grant or bond payment or refusal reason (non-payment or partial payment) is communicated to the financial institution in their monthly reports.

• The transaction processing file (.pro) (RT 901) acknowledges that a transaction has been successfully processed. For each transaction, this file reports the amount of grant or bond paid or a refusal reason when applicable
• The error file (.err) contains 2 types of records:
  • the error report (RT 801) indicates when validation has failed or information submitted is missing, incorrect, or incorrectly formatted
  • transactions in this report must be corrected and resubmitted
• The severe error report (RT 851) identifies severe errors and advises that the record has been rejected and must be corrected and resubmitted
• ESDC will send the grant or bond payment to the financial institution for any successful transactions that have not been refused

For more information, refer to Appendix A. Understanding RDSP error codes and Appendix B. Understanding RDSP refusal reasons.

15.8.2.6 Step 6

The financial institution updates the individual RDSP account with the received amount as well as the reason for partial or non-payment, as applicable. Or corrects missing/erroneous information to resubmit to the CDSP system in the next monthly production run.

15.8.3.1 Correction of contribution/grant request

When a correction needs to be made to a previously submitted and successfully processed contribution, the financial institution submits a correction of contribution/grant request (401-02).

A RT 401-02 correction is submitted to:

• correct a contribution amount
• correct PCG information
• request a grant on a contribution transaction where grant was not originally requested
• resubmit transactions that did not attract grant due to a transfer

There is no limit to the number of corrections that can be done for the same original RT 401-01 contribution/grant request transaction.

Much of the same information required for an RT 401-01 is required for an RT 401-02. The main differences in an RT 401-02, the original RT 401-01 transaction is referenced. This is so that the CDSP system knows which transaction must be corrected, and a new field is added indicating the correction date.

Information needed to correct a contribution/grant request:

• corrected contribution amount
• the BN of the financial institution of the original transaction
• the transaction number of the original request
• the date the correction was made

A correction transaction (RT 401-02) will reverse the original contribution and grant amounts received. It replaces them with the corrected amounts, provided the referenced contract is still registered.

For each successfully processed RT 401-02, financial institutions will receive 2 records in their RT 901 file.

• Reversal of original contribution: contribution and grant originally paid shown as a negative amount in the first RT 901 file with the transaction ID of the correction

• Corrected amount of original contribution: corrected contribution and amended grant paid shown as a positive amount in the second type 901 file with the transaction identification number of the corrections

The CDSP system has been designed to preserve the payment date of the original contribution/grant request.

Some financial institutions may be inclined to correct (RT 401-02) contribution amounts made to an RDSP to $0 and then submit new transactions (RT 401-01). When this is done the payment date on the older transaction is erased and a more recent payment date is generated on the newer transaction (with the same transaction date).

This change of payment date can negatively affect the beneficiary in instances where the assistance holdback amount must be repaid.

Note: The only circumstance in which a new 401-01 should be used to correct a transaction date error.

Finally, as there is no correction transaction for the bond. If an error occurs on a bond request submitted to the CDSP system, the correct information must be submitted on a new bond request (RT 401-05).

15.8.3.2 Stop bond payment request

When a holder wishes to stop receiving bond for the beneficiary, the financial institution submits a stop bond payment request (401-06). For example, when the beneficiary moves out of the country.

Much of the same information required for a RT 401-05 bond request is required for a RT 401-06. The main differences: in the RT 401-06 the original RT 401-05 transaction is referenced so that the CDSP system knows which transaction must be stopped, and a new field is added indicating the stop request date.

Information needed to stop a bond payment request the:

• date the request was made to stop the bond payment
• BN of the financial institution where the bond request was submitted
• transaction number of the transaction to be stopped that was previously reported by the original financial institution

If the holder wishes to receive the bond in the future, a new RT 401-05 bond payment request will need to be submitted. Bond payments will resume from the date of the new request.

15.8.4.1 Add consent

The add consent (RT 202) is used to add an individual to a beneficiary's consent list or update information for existing consent.

Information needed to add/update a PCG the:

• transaction number established by the financial institution
• specimen plan number assigned to the financial institution by the CRA
• contract number of the RDSP
• beneficiary's SIN
• date the consent was added
• name and SIN of the PCG

The RT 202-01 is the method by which financial institutions update a beneficiary's PCG information, whether for contract registration purposes or for payment of grant or bond entitlements, including:

• situations where the beneficiary is an adult when signing the contract but was 18 years of age or under during the current or past years of entitlements
• situations where a beneficiary could have had more than one PCG.

Again, this would only be needed if:

• this information was not provided in a contract registration
• add/update holder or financial transaction

For example, if a contribution/grant request is already submitted and then there is a change in PCG, using RT 202-01 to communicate the change in PCG would be the better method.

Once an add/update consent record is successfully processed, a contract can be registered (if all conditions are met). Financial transactions can also be reviewed and adjusted (if all conditions are met).

15.8.4.2 Revoke consent

The revoke consent (RT 202-02) transaction is used to cancel consent previously granted, for example a PCG or former holder. The current holder must first be removed from the RDSP contract before their consent can be revoked. However, the current holder cannot be removed unless a new holder is added first.

RT 202-02 information needed to revoke consent the:

• transaction number established by the financial institution
• specimen plan number assigned to the financial institution by the CRA
• contract number of the RDSP
• beneficiary's SIN
• date the consent was revoked
• information on the PCG or holder who is revoking consent

15.9.1.1 RT 401

After receiving financial transactions (RT 401) from the financial institution, ESDC may send the following reports: the error report (RT 801) and the severe error report (RT 851) indicate transactions in error.

Toward the end of each processing period, ESDC sends issuers an e-mail informing them that the transaction processing report (RT 901) is ready to be downloaded. The report acknowledges all successfully processed transactions and may include:

• amounts of grant and bond payments
• confirmation of repayments
• refusal reasons
• date of payment
• transaction origin
• retirement savings and education savings rollover issues

15.9.2.1 Lump sum DAP

A lump sum DAP is an ad hoc payment made to a beneficiary or to the estate of a beneficiary if permitted by the terms of the RDSP specimen plan. When a lump sum DAP is made, the assistance holdback amount (AHA) and the proportional repayment rules apply.

Should a financial institution discover that a lump sum DAP was processed in error, a DAP reversal must be submitted to the CDSP system.

15.9.2.2 LDAP

LDAPs are recurring payments that, once started, must be paid at least once a year until either the plan is terminated, or the beneficiary has passed away. LDAPs may begin at any age but must start no later than December 31 of the year in which the beneficiary turns 60. When an LDAP is made, the AHA and the proportional repayment rules apply.

Should a financial institution discover that an LDAP transaction was processed in error, an "LDAP Reversal" must be submitted to the CDSP system.

For more information on the lump sum DAPs and LDAPs, refer to Chapter 4. RDSP payments Lump sum DAPs and LDAPs.

15.9.3.1 Step 1

RT 401 is used by the financial institution to report all financial transactions. The following record and TT are used to report lump sum DAP and LDAP transactions:

• RT 401-20 lump sum DAP
• RT 401-21 LDAP
• RT 401-22 lump sum DAP Reversal
• RT 401-23 LDAP Reversal

Each of these transactions shares common identification fields:

• the number that identifies the RT
• the number that identifies the TT
• the issuer's BN
• a unique number assigned to each transaction
• a specimen plan number assigned by the CRA
• the number assigned to the contract
• the beneficiary's SIN

15.9.3.2 Step 2

The CDSP system receives lump sum DAP and LDAP transactions from the financial institution and validates the required information.

Processed transactions (lump sum DAP/LDAP payments) will update the CDSP system.

15.9.3.3 Step 3

The CDSP system informs RPD, the CRA of the lump sum DAP/LDAP payments.

15.9.3.4 Step 4

Processed lump sum DAP/LDAP transactions are reported back to financial institutions in their monthly reports. Transactions containing errors will need to be corrected and resubmitted for processing.

ESDC sends files to the financial institution.

The transaction processing file (.pro) (RT 901) acknowledges that a transaction has been successfully processed. For each transaction, the amount of grant or bond paid and a refusal reason when applicable are reported.

The error file (.err) contains 2 types of records. The error report (RT 801) indicates when validation has failed or information submitted is missing, incorrect, or incorrectly formatted. Transactions in this report must be corrected and resubmitted. The severe error report (RT 851) identifies severe errors and advises that the record has been rejected and must be corrected and resubmitted.

For more information on error codes or refusal reasons, refer to Appendix A. Understanding RDSP error codes and Appendix B. Understanding RDSP refusal reasons.

15.10.1.1 RT 401

After receiving financial transactions (RT 401) from the financial institution, ESDC may send the following reports.

The error report (RT 801) and the severe error report (RT 851) indicate transactions in error.

Toward the end of each processing period, ESDC sends issuers an e-mail informing them that the transaction processing report (RT 901) is ready to be downloaded. The report acknowledges all successfully processed transactions and may include:

• amounts of grant and bond payments
• confirmation of repayments
• refusal reasons
• date of payment
• transaction origin
• retirement savings and education savings rollover issues

15.10.2.1 Retirement savings rollovers

The specimen plan must be designated to accept retirement savings rollovers. A retirement savings rollover allows amounts from a deceased individual's:

• Registered Retirement Savings Plan
• Registered Retirement Income Fund
• Registered Pension Plan
• Specified Pension Plan
• Pooled Registered Pension Plan

These amounts can be transferred to the RDSP of a beneficiary with a disability. The beneficiary must be the deceased's child or grandchild who was financially dependent on them.

Retirement savings rollovers are reported by the financial institution using RT 401-08 retirement savings rollover transaction.

Should a financial institution discover that a retirement savings rollover transaction was reported in error, a retirement savings rollover reversal transaction (RT 401-09) must be submitted. This submission must be made to the CDSP system.

15.10.2.2 Education savings rollovers

The specimen plans must be designated to accept education savings rollovers. In general, the rollover of Registered Education Savings Plan investment income into an RDSP on a tax-deferred basis is available. This benefit is for beneficiaries with a severe and prolonged mental impairment that is expected to prevent them from pursuing post-secondary education.

Education savings rollovers are reported by the financial institution using an education savings rollover transaction (RT 401-30).

Should a financial institution discover that an education savings rollover transaction was reported in error, an education savings rollover reversal transaction (RT 401-31) must be submitted. This submission must be made to the CDSP system.

15.10.3.1 Form

Rollover forms can vary from one financial institution to another but are accepted if all the required information is included. The CRA form RC4625 may be used for retirement savings rollovers, but this is not mandatory. The CRA form RC435 may be used for the education savings rollovers.

15.10.4.1 Step 1

RT 401 is used by the financial institution to report all financial transactions. The following record and TT are used to report retirement and education savings rollovers:

• RT 401-08 retirement savings rollover
• RT 401-30 education savings rollover
• RT 401-09 retirement savings rollover reversal
• RT 401-31 education savings rollover reversal

Each of these transactions shares common identification fields:

• the issuer's BN
• a unique number assigned to each transaction
• a specimen plan number assigned by the CRA
• the number assigned to the contract
• the beneficiary's SIN

15.10.4.2 Step 2

The CDSP system receives the rollover transactions from the financial institution, validates the required information, and notifies the financial institution that the transactions were received and whether the information is complete.

If the PCG information is required, but not provided, error code 8104 will be produced indicating data missing from the field.

15.10.4.3 Step 3

The CDSP system informs the CRA-RPD of the rollover and the CRA-RPD investigates any rollover issues. For more information, contact the CRA at: 1-800-959-8281.

15.10.4.4 Step 4

Processed rollover transactions are reported to financial institutions in their monthly reports. Transactions containing errors will need to be corrected and resubmitted for processing. Transactions containing rollover issues need to be followed up and the issue resolved.

ESDC sends files to the financial institution:

• the transaction processing file (.pro) (RT 901) acknowledges that a transaction has been successfully processed. May contain a rollover issue.
• the error file (.err) contains 2 types of records:
  • the error report (RT 801) indicates when validation has failed or information submitted is missing, incorrect, or incorrectly formatted. Transactions in this report must be corrected and resubmitted.
  • the severe error report (RT 851) identifies severe errors and advises that the record have been rejected and must be corrected and resubmitted.

For more information on error codes or refusal reasons, refer to Appendix A. Understanding RDSP error codes and Appendix B. Understanding RDSP refusal reasons.

15.11.1.1 RT 971

Once a transfer is complete and the new RDSP has been registered, ESDC will send an RT 971 - transfer extract file, to the receiving issuer. This file contains all the historical data of all successfully processed transactions related to the RDSP. An RT 971 can have the following transaction information:

15.11.2.1 Step 1

A new contract must be established by the receiving issuer to allow for the transfer of assets from the prior RDSP. This is done by submitting the following transactions:

• RT 101-01 contract information
• RT 101-02 beneficiary information
• RT 101-03 holder information

All 3 elements of the contract registration package must be sent together. If one contains an error, it must be fixed and then all 3 transactions must be resubmitted, not just the one with the fixed error. Otherwise, the plan will not reach a registered status.

For more information on how to open a new RDSP, refer to Chapter 3. RDSP Registered Disability Savings Plan, section 3.2.2 Process to open an RDSP.

Each of these transactions shares common identification fields:

• the issuer's BN
• a unique number assigned to each transaction
• a specimen plan number assigned by the CRA
• the number assigned to the contract
• the beneficiary's SIN

Note: For more details about mandatory information required for each record, TT and the validation rules, refer to the ITS.

15.11.2.2 Step 2

The CDSP system verifies if conditions for registration have been met.

15.11.2.3 Step 3

When contract registration transactions are successfully processed, the CDSP system sends an RT 951 (.reg) file to the receiving issuer. Otherwise, incomplete, or inaccurate transactions are returned with an error report (RT 801) to the receiving issuer, refer to Appendix A. RDSP understanding error codes.

15.11.2.4 Step 4

The relinquishing issuer must send a stop bond request RT 401-06 to avoid receiving bond after a contract has been closed.

The relinquishing issuer sends the funds to the receiving issuer. Simultaneously, they submit a close a contract (RT 102-10) transaction to the CDSP system with closure reason “3” transfer.

Information required to close a contract the:

• contract number
• reason for closing the contract: transfer
• date the contract is closed

The relinquishing issuer also submits a transfer reporting of the FMV and earnings amounts (RT 701-02).

Information needed for transfer reporting of FMV and earnings the:

• date on which the financial data was reported by the financial institution
• FMV of the contract
• amount of investment (income earned)

15.11.2.5 Step 5

ESDC advises the relinquishing issuer of contract closure through an RT 951. It advises the receiving issuer of contract registration and resolved to transfer through an RT 951. ESDC also sends the successfully processed financial transactions of the relinquishing issuers to the receiving issuer. This is done through the transfer information extract file, a historical record RT 971.