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The Disability Savings Plan: Contribution Estimates and Policy Issues

Policy Paper by Keith Horner

In this paper Keith Horner analyzes the concept of a registered disability savings plan (RDSP), formulated by the Planned Lifetime Advocacy Network (PLAN). In the author’s view, such a plan would accomplish several objectives: it would provide a savings mechanism for persons with disabilities and their families to enhance self-sufficiency and living standards; it would develop a new partnership between families and governments; and it would ensure Canadian families have tools to plan for when they cannot care for family members with disabilities.

An RDSP would function similar to an RRSP, operating as a tax-assisted savings plan. Horner explores three possible models: modified RRSP rules, a tax-deferred RDSP, and a tax-prepaid RDSP. He also examines three fundamental questions: How beneficial is each model to the contributors and beneficiaries? What level of contribution would be expected and what would the plan cost governments? What other policy implications must be considered? The author explores possible design options for an RDSP and assesses the potential uptake and the cost of each option.

Horner concludes that an RDSP, when combined with improvements to social assistance, would be an effective means to encourage family contributions, promote additional savings and benefit people with disabilities.

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Policy Publication Details

Author(s):	Keith Horner;
Publisher:	Caledon Institute of Social Policy [ Visit Website ]
Year Published:	2005;	Publisher Type:	Research Institute
Publicly Available:	Yes	Research Focus:	National;
Registration Required:	No	Language:	English
Payment Required:	No	Publication Format:	Adobe PDF

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Subjects / Categories:

Policy Articles / Fiscal & Budgetary / Tax Policy
Policy Articles / Fiscal & Budgetary / Tax Policy / 2005
Policy Articles / Fiscal & Budgetary

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Keywords / Tags:

registered disability savings plan; disabilitie; RRSP; tax-deferred; RDSP; social assistance; policy implications; living standards;