Mr. Speaker, this winter the federal government implemented a savings plan to assist persons with disabilities and their families.
The Registered Disability Savings Plan, or RDSP, is a tax-free investment to financially support persons with disabilities. For every dollar invested into an RDSP, the federal government also provides a contribution in the form of grants or bonds, which are based on the beneficiaries’ annual household income.
When withdrawing RDSPs, beneficiaries will receive a combination of the accumulated contributions, grants, bonds and income. Upon withdrawal, beneficiaries will only be taxed on the grant, bond and income.
Withdrawals from RDSPs will not affect federal income-tested benefits and credits, such as the Canada Child Tax Benefit, the Goods and Services Tax Credit and Old Age Security benefits.
Mr. Speaker, I am pleased to confirm today that the Department of Education, Culture and Employment will fully exempt both the RDSP asset and RDSP withdrawals from consideration in the assessment process for all ECE income security programs.
The Government of the Northwest Territories supports the federal government’s plan for persons with disabilities. This program supports our vision to give NWT residents the opportunity to become self-reliant as individual capacity allows, to participate fully in community life, and to share in opportunities available to them in their communities. Mahsi.
