The Registered Disability Savings Plan
This entry has been selected as a finalist in the
Banking on Social Change: Seeking Financial Solutions for All competition.
The development and implementation of the Federal Registered Disability Savings Plan (RDSP) is a lead initiative in the transformation of disability supports away from the traditional welfare-based model and towards one where people can accumulate assets.
About You
Location
Project Street Address
Project City
Project Province/State
Project Postal/Zip Code
Project Country
Your idea
Year initiative/program began:
2000
Field of work
Other
If Field of Work is "Other" please define in 1-2 words below (and explain in detail in the entry form):
Service / Activity focus (If "other" please explain in entry form)
Other
Year organization founded (yyyy)
1989
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Positioning of your initiative on the Mosaic of Solutions™ diagram:
Which of these barriers is the primary focus of your work?
Non-affluent are not valued customers
Which of the principles is the primary focus of your work?
Turn hidden value into alternative markets
If you believe some other barrier or principle should be included in the mosaic, please describe it and how it would affect the positioning of your initiative in the mosaic
One of the major barriers experienced by people with disabilities is perceptions about their worthiness. This is deeper than not being valued as a customer. People with disabilities have to fight societal perceptions of unworthiness, of not being seen as a person or citizen worthy of government support when funds are limited; as beneficiaries of pity; of being seen as an object to whom things are done too; of ‘no expectation’ i.e. of having nothing to contribute. This perception is deeply embedded in most cultures and is profoundly debilitating for people with a disability. It results in isolation and loneliness which is as significant a handicap as the actual disability. This leads to having limited or no social capital, and being seen as objects of charity or welfare.
The result is that most people with disabilities are stuck in a cycle of poverty in which the supports they rely on hinder them from ever getting ahead. These Government systems tend to finance programs under the mistaken belief that rehabilitation services are all you need. The result – people with disabilities are service rich, but cash poor.
These views are shared by the larger culture and unfortunately people with disabilities and their families can start to believe them as well. The RDSP is a bold attempt to mobilize the financial assets of people with disabilities; acquire powerful partners, proclaim and assert their worthiness. Instead of empowerment we seek ‘ec-powerment’ (economic).
This barrier should be included in the mosaic because until you are seen as a human being, as a capable valued person, all solutions will default to the status quo i.e. having things done to you.
Name Your Project
The Registered Disability Savings Plan
Describe Your Idea
The development and implementation of the Federal Registered Disability Savings Plan (RDSP) is a lead initiative in the transformation of disability supports away from the traditional welfare-based model and towards one where people can accumulate assets.
Innovation
What is your signature innovation, your new idea, in one sentence?
The development and implementation of the Federal Registered Disability Savings Plan (RDSP) is a lead initiative in the transformation of disability supports away from the traditional welfare-based model and towards one where people can accumulate assets.
Describe what makes your idea unique—different from all others in the field.
The Registered Disability Savings Plan is unique because it is the first of its kind in the world and takes a strategic approach to combating poverty and financial instability among Canadians with a disability. This plan is specifically designed to transfer money directly to people with a disability who receive Disability Benefits from government and have traditionally been excluded from being able to accumulate assets.
The plan mobilizes the collective resources of people with disabilities and their families, providing a financial power base to partner with financial institutions and government around finding new methods of financing needed supports for people with disabilities in the future. This is particularly poignant at a time when the tax base is shrinking and heath care costs are taking up an increasing amount of the diminishing fiscal pie.
The RDSP will leverage hundreds of millions of dollars of Federal Government funds and unlock billions of dollars of capital from family members and friends so that their family member with a disability can accumulate their own financial assets and enjoy a good life. The RDSP is complemented by matching Government Grants and Bonds that support people with disabilities regardless of their income. By fusing a new partnership between Government, Canadian families, and financial institutions, the RDSP provides a new approach to dealing with the social and financial issues surrounding the exclusion of those with disabilities from the financial sector as a result of their disability.
How do you implement your innovation and apply it to the challenge/problem you are addressing?
PLAN proposed, researched, campaigned and once approved, partnered with the Government of Canada to develop this new registered financial product. We are now partnering with the expected 14 financial institutions who will offer the RDSP and the 13 provincial and territorial governments who will waive welfare restrictions to enable people with disabilities accumulate savings.
The RDSP is now being implemented by the Federal Government and will be offered for sale by 12-14 Financial Institutions across Canada. Starting in December of 2008 Canadians will be able to sign up for this tax-deferred savings plan from numerous financial institutions across the country. PLAN is working on financial literacy and outreach around the RDSP to ensure this innovation is widely utilized. In collaboration with the Federal Government, Provincial Governments, financial institutions and other organizations, PLAN is developing and disseminating materials and information, conducting workshops and presentations, and advising Governments on the RDSP.
Do you have any existing partnerships, and if so, how did you create them?
Our lead partnerships are with the Provincial Government of BC; Vancouver Foundation and Financial Institution’s in BC. This partnership will offer a package to 40,000 people with disabilities in BC consisting of: an initial contribution to RDSP of $150.00 which will trigger grants and bonds totalling $1600; an RDSP edition of Safe and Secure; a free web based social network TYZE (www.tyze.com ); an alternative to guardianship; and free PLAN membership
In which sector do these partners work? (Check all that apply)
Citizen sector (nonprofits, NGOs) .
Impact
Provide one sentence describing your impact/intended impact.
The Registered Disability Savings Plan will lift people with disabilities out of poverty, lever and mobilize new sources of capital for their benefit, and provide their parents with peace of mind.
Please list any other measures of the impact of your innovation.
Other measures of the impact of our innovation would be:
• The direct transfer of money to people with disabilities;
• The transformation of the disability welfare system to an asset-based model;
• Create economic partnership with financial institutions; and
• Peace of mind for parents who worry about the livelihood of their family member with a disability once they have passed away.
Does your innovation address and/or change banking regulations?
No.
How many people does your innovation serve or plan to serve? Exactly who will benefit from your innovation?
The RDSP will directly affect 400,000-700,000 Canadians with a disability who are eligible to set up an RDSP, and millions more Canadian families who support and care for their family member with a disability.
This Entry is about (Issues)
Sustainability
Financing source
How is your initiative financed (or how do you expect your initiative will be financed)?
The development and advocacy around the Registered Disability Savings Plan was financed through the support of numerous community organizations, but mostly in part by the J.W. McConnell Foundation, Vancity, and the Law Foundation of British Columbia.
The RDSP itself is self-sustaining. It is a legislated plan with a long term commitment by Federal Government to provide contributions through the Disability Savings Grant and the Disability Savings Bond.
PLAN’s ability to provide information and support to people with disabilities and their families will be enhanced by partnerships with Financial Institutions’s and provincial and territorial governments.
If known, provide information on your finances and organization:
Annual budget - $1,020,424
Revenues 854,000
Expenses 824,000
Number of staff (full-time, part-time, volunteers) 7 full time, 6 part-time
What are the main financial barriers and how do you plan to address them?
The main financial barriers for this program are that plan benefits are decreased for anyone who does not receive contributions from family and friends. Low-income individuals are still able to access the Government Bond, but may have a harder time receiving portions of the Government Grant which requires contributions from family and friends (but is geared towards low and middle income families). PLAN is developing a “No One Alone Fund” which would contribute charitable funds into RDSPs for people who don’t necessarily have friends or family in their lives who are in the position to contribute. This fund would leverage federal government funds and provide significantly increased benefits for low-income recipients and address their social isolation.
Aside from financial sustainability, how do you plan to grow the initiative?
PLAN has proposed a Pooled Disability Investment Fund which provides an investment vehicle for RDSPs and Discretionary Trusts. This Pooled Investment Fund would be used to develop the capacity and resilience of the disability community in creating social and financial well-being for people with disabilities. We estimate this market to be $160 billion dollars.
PLAN is beginning to provide outreach to Canadians who may be eligible to set up RDSPs but are currently unaware of the plan. This outreach will be conducted through seminars/presentations, workshops, information and materials, an online awareness campaign, the PLAN website and RDSP Blog, and articles written for disability organization newsletters across the country.
The Story
Please select one
What was the motivation or defining moment that led to the creation of this innovation? Tell us the story.
The motivation that led to the creation of the RDSP was the 1000’s of stories from parents, family members and people with disabilities across the country, all expressing the need to help their disabled relatives, but wary to provide this help for fear of disqualifying their loved one from receiving much needed government disability benefits and supports.
Caught within the traditional welfare-based approach, governments continuously claw-back any attempts from family and friends to help their disabled relative achieve some sort of financial security and increase their quality of life. What we heard from families is that their relative with a disability are significantly less able to enter into the workforce and leverage themselves out of poverty. Yet, the amount of assistance and support they receive leaves them significantly below any measure of well-being.
The defining moment came when we realized that despite all the talk, the majority of funding for people with disabilities is provided through programs and services. And that this was simply not good enough. We wanted better
Please provide a personal bio of the social innovator behind this initiative.
Al Etmanski, President and Co-Founder,
Planned Lifetime Advocacy Network (PLAN)
Al has been a leading advocate for people with disabilities and their families in Canada for more than two decades. He is widely recognized as a visionary thinker in areas of social policy, community development and individualizing services for people with disabilities.
Al is an author, advocacy consultant and social inventor who specializes in finding innovative, non-governmental solutions to social problems.
In recent years, Al has become known for his expertise in fostering social enterprise within the civic sector, converting social capital to economic capital, the innovative use of non- profit, profit and public sectors as problem solving partners and creating alternatives to legal guardianship.
a) Please identify the individuals that your innovation benefits (Please check all that apply)
Producers , Consumers , Holders of assets.
b) Do you help the people you serve to buy goods or services using financial innovation? If so, how?
PLAN’s development of the Registered Disability Savings Plan will help Canadians with a disability and their families utilize the services of the financial sector from which they are so often restricted from participating. Over time people’s RDSPs will provide billions of dollars to supplement income, enable home ownership, purchase supports, services and products and ultimately, enhance quality of life. By creating a financial savings mechanism that is designed specifically to address the needs of people with disabilities and leverages contributions from government, the RDSP will help people with disabilities accumulate savings without losing their access to much needed government supports and programs.
c) Do you help the people you serve to sell goods or services using financial innovation? If so, how?
No.
 | 182 weeks agoBarb Gosse said: Hello all, The whole SEDI Team is pulling for you all at PLAN and this win!!! Tally-Ho!!!! Barb about this Competition Entry. - read more > |
| 182 weeks agoBarb Gosse said: The team at SEDI is pulling for you all at PLAN! Best of luck!!!! about this Competition Entry. - read more > |
| 182 weeks agojaynie Mitchell said: Hi all at Plan. Good luck I'm rooting for you, as you have give so much hope to families and individuals around the world all the best ... about this Competition Entry. - read more > |
| 183 weeks agoelizbeth Snell said: I am so happy that PLAN innitiated this action which will benefit people all over Canada - my brother being one. Thanks Plan. Liz ... about this Competition Entry. - read more > |
| 184 weeks agodr gopalakrishna said: ---------- DR. Gopalkrishna about this Competition Entry. - read more > |
| 184 weeks agoLinda McDaniel said: Go PLAN go! about this Competition Entry. - read more > |
| 184 weeks agoThe Registered Disability Savings Plan has been chosen as a finalist in Banking on Social Change: Seeking Financial Solutions for All. |
