What's New - July 3rd, 2008
What a PLAN: Disability Savings Plan
Canada has become the first country to create a Disability
Savings Plan.
For the first time in history, a generation of people with
disabilities are outliving their parents. The creation
of the Disability Savings Plan responds to this global phenomenon
by assisting families to create financial security, provide safe
homes, and cover the extraordinary costs associated with their
son's or daughter's disability.
The Disability Savings Plan will benefit more than 700,000
people with severe disabilities, whose families will now have a
simple method for planning for the future. The Plan
will put billions of dollars into the hands of people with
disabilities.
PLAN and its Affiliates have been promoting the creation of a
Disability Savings Plan for nearly five years. During
2005 and 2006, PLAN conducted national consultations and met with
hundreds of families from coast to coast to get their input on the
design of a plan.
The March 16th Federal Budget announcement creates a Registered
Disabilities Savings Plan with the following characteristics:
- A $200,000
lifetime contribution limit
- Contributions
permitted by the individual, any family member or
friend
- No annual limits
on contributions
- No restrictions
on when the funds could be used or for what purpose
A Disability Savings Grant will match contributions and
will be greater for individuals/families with less
income. This Grant will enhance families'
efforts. This is important because families and people
with disabilities already face additional disability-related
expenses.
A Disability Savings Bond will provide support to people with
disabilities who have low incomes and are without family
support. This initiative signals a shift away from a
welfare-based model towards an investment
model. Eligibility should be based only on qualification
for the disability tax credit.
To find out more information on the Disabilities
Savings Plan, click
here to contact PLAN or
the PLAN Institute.
Status: Confirmed
Announced on: March 26th, 2007