Chapter 16. RDSP list of definitions

Disclaimer: RDSP issuers

The information contained on this page is technical in nature. The target audience are issuers of the:

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

For general information, visit the RDSP page.

On this page

Alternate formats

A PDF version of the Registered Disability Savings Plan provider user guide is available on the index page.

List of acronyms

AHA
Assistance holdback amount
AIP
Accumulated income payment
BN
Business number
CCB
Canada child benefit
CDSA
Canada Disability Savings Act
CDSB
Canada Disability Savings Bond
CDSG
Canada Disability Savings Grant
CDSP
Canada Disability Savings Program
CESP
Canada Education Savings Program
CRA
Canada Revenue Agency
CSAA
Children's Special Allowance Act
DAP
Disability assistance payment
DTC
Disability tax credit
ESDC
Employment and Social Development Canada
FMV
Fair market value
ITA
Income Tax Act
ITS
Interface transaction standards
LDAP
Lifetime disability assistance payment
MSFT
Managed secure file transfer
Non-PGAP
Non-primarily government assisted plan
ODI
Office for Disability Issues
PA
Privacy Act
PGAP
Primarily government assisted plan
PIPEDA
Personal Information Protection and Electronic Documents Act
PCG
Primary caregiver
PRPP
Pooled Registered Pension Plan
QFM
Qualifying family member
RDSP
Registered Disability Savings Plan
RESP
Registered Education Savings Plan
RPP
Registered Pension Plan
RRIF
Registered Retirement Income Fund
RRSP
Registered Retirement Savings Plan
RT
Record type
SDSP
Specified Disability Savings Plan
SIN
Social insurance number
SIR
Social insurance registry
SPP
Specified Pension Plan
TT
Transaction type

Introduction

A number of acronyms and definitions are specific to Employment and Social Development Canada (ESDC). This also applies to the administration of Registered Disability Savings Plans (RDSPs). These acronyms and definitions also relate to applications for the Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB). Finally, they apply to the payments of these incentives.

This alphabetized list of acronyms and definitions will help readers quickly identify the meaning of the terms used in this guide.

16.1 List of definitions

The following terms are used throughout this user guide.

Accumulated income payment (AIP)

A payment made to a subscriber from the income earned from contribution and education savings incentives paid into a Registered Education Savings Plan (RESP).

Agent

An agent provides administrative services on the issuer's behalf.

Assistance holdback amount (AHA)

The AHA is the total amount of CDSG and CDSB paid into an RDSP within the 10-year period before the particular time. This amount is less any amount of CDSG or CDSB that has been repaid to ESDC in that 10-year period. For a Specified Disability Savings Plan (SDSP), the AHA is nil.

Beneficiary

An individual who meets RDSP eligibility requirements that are named by the holder of an RDSP.

Business day

A day on which issuers are generally open for business in the province in which the issuer's head office is located.

Business number (BN)

A 15-character alphanumeric code, assigned by the Canada Revenue Agency (CRA), that identifies the RDSP issuer or agent authorized to submit transactions to the Canada Disability Savings Program (CDSP) system. It can also be the number assigned to the organization caring for a child and receiving an allowance under the Children's Special Allowances Act (CSAA).

Canada Child Benefit (CCB)

A tax-free monthly payment made to eligible families to help them with the cost of raising children under 18 years of age.

Canada Disability Savings Act (CDSA)

An Act to encourage savings for persons with disabilities. The legislation is the enabling legislation for the CDSG and the CDSB.

Canada Disability Savings Bond (CDSB)

The CDSB, commonly referred to as "bond" is money the Government of Canada deposits into the RDSP of qualified low-income and modest-income Canadians. The CDSB is paid into the RDSP until December 31 of the year in which the beneficiary turns 49 years of age.

Canada Disability Savings Grant (CDSG)

The CDSG, commonly referred to as "grant" is a matching grant the Government of Canada will deposit into a qualifying beneficiary's RDSP, up to 300%, depending on the amount contributed and the beneficiary's family income. The CDSG is paid into the RDSP, on contributions made on or before December 31 of the year in which the beneficiary turns 49 years of age.

Canada Disability Savings Regulations (Regulations)

The Regulations set out the requirements, terms and conditions for the payment, and administration of the CSDG and the CDSB.

Canada Education Savings Program (CESP)

ESDC is responsible for the administration and delivery of the CDSG and the CDSB. Within ESDC, the CESP provides the delivery mechanism and necessary system supports for the effective administration of the CDSG and the CDSB.

Carry forward

The carry forward provision of CDSG and CDSB entitlements refers to the accumulation and payment of unused CDSG and CDSB entitlements from the past 10 years (starting in 2008).

Canada Disability Savings Program (CDSP) system

An ESDC electronic application that supports the delivery of the CDSG and CDSB. It enables the exchange of electronic information between the CDSP system and partners:

  • financial organizations
  • CRA
  • ESDC
  • Social insurance registry (SIR)
  • Office for Disability issues (ODI)

Child-in-care

A child under the care of a federal or provincial department or an agency approved by a province to have the custody or care of the child that receives payments under the CSAA.

Children's Special Allowance Act (CSAA)

CSAA authorizes a tax-free monthly payment for a child who is under the age of 18, who physically resides in Canada and who is under the care of a federal or provincial department, or an agency approved by a province to have the custody or care of the child.

Contributions

An amount paid into the plan by the holder, or by any entity with the holder's written permission.

Designated provincial program

Program established under the laws of a province.

Disability assistance payment (DAP)

A payment made from the RDSP to the beneficiary or to the beneficiary's estate. When a DAP is made, the AHA and proportional repayment rules apply.

Disability Tax Credit (DTC)

A non-refundable tax credit available to individuals with one or more severe and prolonged physical or mental impairments in a given year. These impairments must be certified by a medical practitioner and approved by the CRA under section 118.3 of the Income Tax Act (ITA).

Disability Tax Credit (DTC) eligible individual

An individual eligible for the DTC in respect of a taxation year.

Education savings rollover

An RESP subscriber and an RDSP holder may choose to transfer an accumulated income payment under the RESP to the RDSP if, at the time of the election, certain conditions are met.

Eligible proceeds

Funds that are eligible to be transferred to an RDSP:

  • Registered Retirement Savings Plan (RRSP)
  • Registered Retirement Income Fund (RRIF)
  • Registered Pension Plan (RPP)
  • Pooled Registered Pension Plan (PRPP)
  • Specified Pension Plan (SPP)
  • RESP investment income

Error reports

The CDSP system-generated reports, identifying the field(s) in error, sent to the issuer when information submitted to the CDSP system is missing or improperly formatted.

Fair market value (FMV)

The value of the funds in the RDSP at a given time.

Family income

Family income is used to determine the amount of CDSG and CDSB entitlements. From birth to December 31 of the year a beneficiary turns 18, a beneficiary's family income is based on the income information used to determine the CCB (line 236 of the income tax and benefit return) for that beneficiary. Beginning in the calendar year, the beneficiary turns 19, the beneficiary's family income is based on his or her income plus his or her spouse's income.

Financially dependent child or grandchild

In relation to a retirement savings rollover, the RDSP beneficiary was financially dependent (as a result of a mental or physical infirmity) upon the parent or grandparent at the time of the parent or grandparent's death.

Financial organization

Used generally to refer to the entity that is offering the RDSP product directly to clients.

Guardian

An individual, department, agency, or institution that has the legal right to make decisions affecting a child's interests and has the responsibility of taking care of the child (as defined by provincial law).

Holder

An entity that enters into an RDSP contract with an issuer and names a beneficiary as the sole beneficiary of the plan.

Income Tax Act (ITA) 146.4

The legislation that governs RDSPs. The CRA is responsible for interpreting and administering the provisions under the ITA.

Interface transaction standards (ITS)

The ITS outlines the data elements and the format that an issuer must use when submitting electronic information to the Government of Canada.

Issuer

A corporation that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee and with which the specified minister has entered into an agreement that applies to the arrangements for the purposes of the CDSA.

Issuer agreement

An agreement between the Minister of Employment and Social Development and an issuer that sets out the terms and conditions with respect to the administration of the RDSP, the CDSG and the CDSB.

Lifetime disability assistance payments (LDAP)

Payments made from the RDSP to the beneficiary that, once they begin, they are payable at least annually until or the plan is terminated or the beneficiary dies, whichever occurs first.

Linked social insurance number (SIN)

When a beneficiary receives a new SIN to replace a previous SIN, the old SIN is linked to a new SIN.

Managed secure file transfer (MSFT) system

An Entrust®-enabled software recognized by ESDC as a secure method of data encryption.

Non-primarily government assisted plan (non-PGAP)

When, at the beginning of the calendar year, private contributions (including retirement savings and education savings rollovers) exceed the total amount of CDSG and CDSB held in the RDSP.

Office for Disability Issues (ODI)

Within ESDC, ODI provides program policy leadership in the design and oversight of selected programs focusing on issues faced by people with disabilities. ODI is the policy and program authority for the CDSG and the CDSB.

Personal Information Protection and Electronic Documents Act (PIPEDA)

Outlines the basic rules for the manner in which organizations can collect, use, and communicate personal information.

Pooled Registered Pension Plan (PRPP)

A defined contribution pension plan that is portable and accessible savings vehicle that will help Canadians meet their retirement objectives.

Primarily government assisted plan (PGAP)

When, at the beginning of the calendar year, the total amount of CDSG and CDSB held in the RDSP exceeds contributions (including retirement savings and education savings rollovers).

Primary caregiver (PCG)

The person that is eligible to receive the CCB for the child, as defined under the ITA. The PCG is primarily responsible for the care and upbringing of the child.

Privacy Act (PA)

The legislation that provides all individuals present in Canada access to federal information about themselves. It also specifies how the government can collect, use, disclose, and retain personal information. The Act provides the legal framework for protecting personal information, accessing personal information, data matching, and controlling the use of SINs.

Qualified dependent

A person who has not attained the age of majority. It is the child of a PCG or is under their care or the care of their spouse and resides with the PCG.

Qualifying family member (QFM)

A legal parent, spouse or common-law partner of an adult beneficiary may become the holder of an RDSP that is open for the first time for an adult beneficiary. This applies if the beneficiary's capacity to enter a contract is in doubt and no legal representative has been appointed.

Record type (RT)

A data record that is exchanged between the RDSP issuer's system and the CDSP system.

Registered Disability Savings Plan (RDSP)

The RDSP is a long-term savings plan intended to help Canadians with severe and prolonged disabilities save for the future.

Registered Education Savings Plan (RESP)

Registered plan that is intended to help to save for a beneficiary's postsecondary education.

Registered Pension Plan (RPP)

An arrangement by an employer or a union to provide pensions to retired employees in the form of periodic payments.

Registered Retirement Income Fund (RRIF)

An arrangement between a carrier and an annuitant under which payments are made to the annuitant of a minimum amount each year.

Registered Retirement Savings Plan (RRSP)

A contract or arrangement between an individual and a financial organization under which contributions are made for the purpose of providing the individual a retirement income commencing at maturity.

Repayment obligation

The amount of CDSG and CDSB paid into an RDSP that must be repaid to ESDC.

Reporting periods

The time period, extending from the first to the last day of the same month, over which RDSP transactions take place. The RDSP provider has 4 business days after the reporting period to send files for processing by the CDSP system. They cannot include any transactions which occurred after the last day of the reporting period.

Retirement savings rollover

An indirect tax-deferred transfer allows proceeds from a deceased individual's retirement savings plan to be transferred to the RDSP of their financially dependent child or grandchild. The eligible plans include:

  • RRSP
  • RRIF
  • RPP
  • PRPP
  • SPP

Service provider

A service provider provides support services regarding RDSP as well as compiles and forwards electronic transactions to the CDSP system.

Shared custody

Parents that share the custody of a child may receive and share the CCB for that child throughout the year. Shared custody exists when a child lives with 2 different individuals, both considered the PCG. These PCGs, or shared-custody parents, must live in separate locations on an equal or near-equal basis. Each PCG must also be primarily responsible for the child's care and upbringing when living with the child.

Shortened life expectancy

When a medical doctor or nurse practitioner attested, in writing, that the beneficiary's state of health is such that the beneficiary has a life expectancy of 5 years or less.

Social insurance number (SIN)

A 9-digit number that is needed to work in Canada or to have access to government programs and benefits.

Specified Disability Savings Plan (SDSP)

An RDSP is designated as an SDSP when a medical doctor or nurse practitioner has attested, in writing, that the beneficiary's state of health is such that they are not likely to survive more than 5 years. The holder designates the plan as an SDSP and submits the election with the medical certification to the issuer. An SDSP permits the holder to request annual withdrawals without requiring the repayment of the AHA or the proportional repayment amount.

Specified Disability Savings Plan election

When the beneficiary has a shortened life expectancy, and the holder designates the RDSP as an SDSP.

Specified Pension Plan (SPP)

Prescribed provincial pension Plan.

Specified year

When a medical doctor or nurse practitioner has attested, in writing, that the beneficiary has a shortened life expectancy. A specified year begins when the issuer receives the medical certificate and continues for each of the 5 years following the date of the attestation is signed by a medical doctor or a nurse practitioner.

Specimen plan

A template of the contract that holders must sign with an issuer when they open an RDSP for a beneficiary. The CRA must approve the issuer specimen plan before an RDSP can be offered to the public. The CRA assigns a unique specimen plan number to approved specimen plans.

Statement of entitlement

A statement showing the amount of CDSG entitlements available as well as the amount of contribution required in the current year to maximize the CDSG that could be paid into the RDSP.

Transaction identifier

A unique identifier assigned to each transaction by the RDSP issuer.

Transaction type (TT)

The 2-digit number following the RT, which further categorizes the transaction submitted to the CDSP system.

Unusable social insurance number (SIN)

SINs are verified monthly at SIR. As a result of this monthly SIN validation, certain SINs will be identified as "flagged" by SIR as "SIN is not useable."

Useable SIN

SINs may have a status of "SIN is useable." This is a result of SIR reactivating (unflagging) a SIN.

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2025-09-18