Individuals with disabilities and parents of children with disabilities in Saskatchewan will be able to better plan for the future, following the exemption of Registered Disability Savings Plans (RDSPs) from social assistance calculations.
The exemption means that RDSP assets and income - including funds withdrawn for payment to a beneficiary - will not be included when determining eligibility for the Saskatchewan Assistance Program.
"The exemption of RDSP assets and income from social assistance calculations makes sense for a number of reasons," Social Services Minister Donna Harpauer said. "Most importantly, it will encourage individuals with disabilities and parents of chidlren with dsabilities to create RDSPs without having to worry that the assest will be clawed back when withdrawls are made on behalf to the beneficiaries."
Saskatchewan becomes one of the first provinces in Canada to implement this exemption, with other jurisdictions expected to follow.
"We appreciate the leadership that the Province has shown with this improvement for people with disabilities," Canadian Mental Health Association (Saskatchewan Division) executive director Dave Nelson said. "This exemption should help people with disabilities and their families enjoy a better life in our province."
The federal government introduced RDSPs in its 2007 budget to help people with disabilities and families with a child or family member with a disability save for their long-term financial security. The initiative is expected to take effect by December 2008, at which time applications for registration of RDSPs will be accepted by financial institutions. Funds will be allowed to accumulate tax free in the plans until withdrawn. People with disabilities and families will also be elgible for matching grants and bonds from the federal government, depending on family income.
"Most people with disabilities incur extra costs because of their disability," Harpauer said. "This new exemption will help ensure that people with disabilities in Saskatchewan have opportunities for independence and participation in our communities and economy."
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For more information, contact:
Brain Miller
Social Services
Regina
Phone: 306-787-5031
Email: brian.miller3@gov.sk.ca
*Press release taken from the Government of Saskatchewan website,
click here to view.