Financial Security for People with Disabilities Plan Institute is grateful for the opportunity to present on how the unique financial model of the Registered Disability Savings Plan helps to provide Financial Security for people with disabilities. Welcome to Plan Institutes presentation at the Zero Project, Financial Security for People with Disabilities – The Registered Disability Savings Program in Canada Introduce Trevor. The Registered Disability Savings Plan

Presentation Outline About Plan Institute and PLAN RDSP Financial Innovation - Facts RDSP - Overview RSDP - Grants and bonds The RDSP and you - Examples More information and resources links In this presentation we will cover a short introduction to PLAN and Plan Institute, The RDSP as a Financial Innovation, a short overview of the RDSP, the significant Grants and Bonds that form the RDSP, The RDSP and you and finally where and how to get more Information.

Planning for a Good Life - 50 Combined Years Two Pillars for “A Good Life” Financial well-being Social well-being RDSP: A world’s first One of a range of financial planning tools Plan Institute and PLAN are both Non-profit Charitable organizations located in Vancouver, British Columbia Canada that helps those with disabilities achieve a good life through financial and social well-being. Plan Institute proposed, researched, and campaigned for the RDSP. Both organizations have continued to track, advise, and promote the plan as well they have recently collaborated with the provinces to further accommodate the RDSP by raising asset limits and eliminating claw-backs.

RDSP - Financial Innovation Created by Federal Government Canada with guidance from PLAN & Plan Institute and others in 2007. Is a Social Finance Innovation that is helping lift many people with disabilities in Canada out of future poverty. Funds are paid out 10 years after the last contribution to allow for time for the RDSP to grow in value. The RDSP is not designed to take the place of other benefits, rather compliment them. Is exempt from reducing other benefits payments and qualification. As a financial Innovation that the Federal Government of Canada implemented in 2007 the RDSP is helping lift people with disabilities out of the poverty paradigm. The RDSP is designed to be a long term savings plan and as such funds can be withdrawn from 10 years after the last contribution, it is exempt from other benefits reductions.

RDSP - Quick Facts Anyone may contribute to the plan with the written consent of the holder $200,000 lifetime contribution limit (no annual contribution limit) E150 Grant is a $ 150 one time kick start to the RDSP by Plan Institute in B.C. only The Government Grants and Bonds can provide up to a maximum of $ 90,000 over the life of the plan holders RDSP. RDSP Grants and Bonds can be awarded to qualifying RDSP’s that are opened before the holders 49th birthday. The RDSP has the following benefits: anyone can contribute to your plan ( with consent ), there is a $ 200,000 lifetime contribution limit, the grant and bonds that are available are up to a value of $ 90,000.00 and can be applied for up to the holders 49th birthday.

Canada Disability Savings Grant Federal Government matches annual contributions at the following rates: Family Income (2017) Grant (2016) Lifetime Maximum $93, 208 or less $3 for every $1 contributed on the first $500 (max. $1,500) $2 for every $1 contributed on the next $1,000 (max. $2,000) $70,000 More than 93,208 * or no tax return $1 for every $1 contributed on the first $1,000 (max. $1,000) The Federal Government of Canada will contribute up to $ 3,500 per year up to a lifetime maximum of $ 70,000 if your family income is below $ 94,000 or up to $ 1000 if it is above $ 94,000 Note: the threshold amounts increase a little each year

Canada Disability Savings Bond Annual Federal Government contribution to RDSPs of people with low and modest incomes Up to $1,000 each year to a lifetime maximum of $20,000 (no contributions necessary but taxes must be filed) Annual Income (2016) Amount of Bond $$ $30,450 or less $1,000 $30,450 - $46,605 $1,000 reduced on a pro-rated basis The Federal Government of Canada will contribute up to $ 1,000 per year up to a lifetime maximum of $ 20,000 if your family income is below $ 30,500 or $ 1000 reduced on a pro-rated basis between $ 30,500 & $ 47,000 there is no bond available above this amount Note: the threshold amounts increase a little each year

Grants and Bonds can be claimed retroactively for ten years Bond amounts will be paid automatically Grant amounts can be received by making contributions now for previous years (Note: the government will put in a maximum of $10,500 in any one year) you can only access them for 10 years and only if you make contributions before Dec 31st of the calendar year in which you turn 49 The fine print related to the Grants and Bonds are that the Bonds are automatically paid into the RDSP. The Grants can be retroactive for previous years ( the government will contribute up to a maximum of $ 10,500 in any one year and finally you can only go back 10 years to apply for missed years that you qualified for.

Who can set up a plan? For a Minor For Adults Parents or legal guardians set up the plan (parents can remain holders even after the beneficiary becomes an adult). A person appointed by the courts to act on the beneficiary’s behalf may also be the holder. Currently, until the end of 2023, parents and spouses can become the account holder for an adult who cannot enter into a contract. For Adults A legal parent, guardian or agency legally authorized to act on behalf of a minor beneficiary may set-up and become the holder of the plan until the beneficiary attains the age of majority. A beneficiary over the age of 18 can be the account holder of their own RDSP. Guardians cannot remain holders of a RDSP belonging to an adult.

How Maggie, Erin and Ranjeet will benefit from grants and/or bonds: $150/month $1800/ year $125/ month $1500/ year $0 No Contribution Family income over $93,208 Grant= $1,000 Income under $93,208 Grant= $3,500 Grant= $0 Family income over $46,605 Bond= $0 Income under $30,450 Bond= $1,000 Total= $2,800 Total = $6,000 Total= $1,000 We have shown some examples of how the Grants and Bonds as well as a plan holder RDSP would look based on various contributions in a given year . Maggie would have $ 2800 from her parents contribution's and a small Grant award. Erin would have $ 6000 from qualifying for the full grant and bond and Ranjeet would have $ 1000 from the Bond only.

Questions? Call: 1-844-311-PLAN (7526) Email: info@rdsp.com Visit: www.rdsp.com © The information included within this document is the sole property of Plan Institute. Any reproduction in part or as a whole without the written permission of Plan Institute is prohibited. The material in this presentation is intended as a general source of information only, and should not be construed as offering specific tax, legal, financial or investment advice. Every effort has been made to ensure that the material is correct at time of publication, but we cannot guarantee its accuracy or completeness. Interest rates, market conditions, tax rulings and other investment factors are subject to rapid change. Individuals should consult with their personal tax advisor, accountant or legal professional before taking any action based upon the information contained in this presentation. If you or your organization are interested in learning more about the RDSP and or further details of the financial Innovation aspect of the RDSP please reach out to us either here or at the contact information above. THAJK YOU for taking a few valuable minutes to learn about the RDSP .