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.