Subject:                          FW: CONGRATULATIONS ALBERTA!

Hi all,

I’m passing along this fantastic news that was announced in Edmonton today (Nov 27).  The Provincial government of Alberta has exempted RDSP assets and income from calculations for AISH and other income support programs.  Our province joins B.C., Saskatchewan, Manitoba, Newfoundland and Labrador, and the Yukon in exempting the RDSP.   This removes an obstacle which stood in the way of families taking full advantage of the RDSP for their sons or daughters with disabilities.

We hear from the PLAN folks in Vancouver that the Federal government is on track for having the regulations and program details completed in the next week or so.  We have also heard that a number of financial institutions will have products available by the end of the year and more will roll out throughout the coming year.

It is nice to know that determined citizens working together can make a difference!

Cheers,

Bruce

D. Bruce MacKay

President, Lethbridge Association for Community Living

Information Bulletin

ALBERTA
Strong Communities
November 27, 2008
Alberta supports new federal disability savings plan
Savings will not affect eligibility for provincial financial assistance programs
Edmonton... The Alberta government will ensure Albertans with disabilities who have a federal Registered Disability Savings Plan (RDSP) will not have their provincial benefits affected.

The RDSP is a new federal program that will help parents and others to save to ensure the long-term financial security of a child with a severe disability.

“This will encourage families with children with disabilities to plan for their future needs, as well as help Albertans with disabilities to save money to supplement their income and maximize their independence,” said Mary Anne Jablonski, Minister of Seniors and Community Supports.

The Alberta government is ensuring Albertans with disabilities will continue to qualify for benefits as they would without an RDSP, by fully exempting the RDSP as income and assets when determining eligibility for provincial financial assistance programs. Government programs affected by this cross-ministry initiative include the Assured Income for the Severely Handicapped (AISH) program, the Alberta Seniors Benefit program, and the Income Support program.

“This exemption offers families peace of mind knowing that they can save for the future of a family member without affecting their provincial benefit,” said Hector Goudreau, Minister of Employment and Immigration. “It will also help family members maintain a good quality of life.”

More information on RDSPs is available on the Canada Revenue Agency website at www.cra-arc.gc.ca or by calling 1-800-959-8281 (TTY users call 1-800-665-0354).

The buzz is starting to build on the RDSP (Registered Disability Savings Plan).

Here is another blog about the RDSP which has some good information: http://rdsp.wordpress.com/

Currently we (those of us who are looking to make use of the RDSP for our family member with a disability) are waiting for the Federal Government bureaucracy to complete writing the regulations for the RDSP.  The folks with PLAN (Planned Lifetime Advocacy Networks) in Vancouver are telling us that their contacts in the federal government are saying the regulations should be finished probably toward the end of March, 2008.  There may be a process then of sending the regulations out for feedback from other organizations (such as, for example, financial institutions), gathering suggestions for improvement, and making revisions.  The final step will be approval by the federal cabinet.  Financial institutions will begin to offer RDSP products only after all of these regulations are complete.  This may take some time. 

In Alberta, now that the election is over, we can begin to organize and plan how best to approach our elected representatives about making changes to AISH (Assured Income for the Severely Handicapped) so that RDSP savings and income will be exempted from asset calculations for AISH purposes.  The RDSP should be a way for families to ensure that their son or daughter with a disability has a good quality of life.  It should not be used as a replacement for the programs and services (such as AISH) that the province already provides for its citizens with disabilities. 

Keep watching for more information as it becomes available.

The front page story in the Lethbridge Hearld on Thursday, February 7, 2008 reported that Premier Ed Stelmach announced on Wednesday a plan to allow people on AISH to earn more money before it would affect their assured income benefits.  The article suggested that Stelmach was distancing himself even more from former Premier Ralph Klein with this proposal.  Whatever the reason, Premier Stelmach indicated that this proposal would allow people to earn another $500 per month without it affecting their AISH benefits.

This, if it goes through, would be good news. 

One implication is that changing AISH limits would enable someone to take greater advantage of potential RDSP benefit.

There was no mention in the article about changing AISH asset limits which could have a bigger impact on how useful the RDSP can be to people who have contributed to it for many years.

We'll have to continue to see how AISH plays out in the election.

Thanks to Dean Fowler of Meyers Norris Penny and to Darth Bluekens of National Bank Financial for giving a small group of families an overview of the potential for the new RDSPs.

Stay tuned here for updates.  Financial institutions still need to create RDSP investment products and the Province of Alberta needs to make some adjustments to provinical rules regarding AISH before everyone can take advantage of this opportunity.

Stay tuned for more information.  Let us know if you hear any news.

Registered Disability Savings Plan (RDSP)

Family Voices Hot Topic Night

January 31, 2008

7:00-9:00

at Meyers Norris Penny

3425-2 Ave S

Presented by

Dean Fowler,  Parent of a child with a Disability

CA, and Partner at MNP

& Garth Bluekens, CA

Investment Advisor with

National Bank Financial

How can RDSP’s help you save for

your Child’s future?

·       What is the RDSP?

·       Who is eligible?

·       Who can contribute?

·       When will it come into effect?

·       Where can I get more information?

A proposal by Planned Lifetime Advocacy Network in Vancouver (PLAN) for a Disability Savings Plan is now a fact. After an 8 year campaign, on Friday December 14th 2007, the RDSP received royal assent after passing third reading in both the House of Commons and the Senate. The RDSP is a historic initiative in a number of arenas:

The First! – Canada is the first nation to address families’ concern for the future by implementing a Registered Disability Savings Plan. Families and politicians in other countries such as United States, Australia and New Zealand have followed our progress and are working on their own plans.

The Scale – The RDSP will assist as many as 700,000 Canadians with disabilities and the Federal Government has budgeted $115 million in matching Canada Disability Savings Grants and Bonds for 2008-09.

Personal Control – The Federal Government has emphatically declared that they trust families and people with disabilities. There are no restrictions on what the RDSP can be spent on. While the Federal Government is sharing responsibility for planning for the future with the Grant and Bond, people with disabilities and their families will control the use of the funds

Future Financial Security – Like RRSPs, the RDSP will have a significant impact on the future financial security of people with disabilities. Even modest contributions when a child is young will result in significant income flow – as much as $20,000 to $25,000 per year - later in life. Financial security then provides greater opportunity for people to live “good lives”.

Ripple Effects – The future impacts of the RDSP go well beyond the creation of a simple future planning tool. Provincial governments will be forced to change the asset limits for disability benefits and to eliminate claw-backs. Other reforms will also be necessary to accommodate to a new world where people with disabilities have more assets and income.

PLAN is now working with financial institutions and the federal government to ensure the RDSP is offered as a "product" in every financial institution in the country as quickly as possible.

See http://www.plan.ca/SocialPolicy_PolicyUpdates.php for more information.