Public Service Matters will be an occasional feature on the Samara blog. It will profile individuals and organizations engaged in exemplary public service. The column will be an opportunity to showcase ideas and initiatives that are having a positive impact in our communities and helping shape public policy at the local and/or national level.
For this column, we spoke to Vickie Cammack, co-founder of PLAN. The topic: the new Registered Disability Savings Plan, an innovation PLAN developed and that became available to all Canadians through the federal budget of 2008.
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"I think we've been successful because we've had a hand in the soil and a hand in the stars at the same time." With that, Vickie Cammack sums up the winning formula that led to the RDSP, a registered savings tool designed for the long term financial security of people with disabilities.
It's the kind of initiative that could only come from having your hand in the stars. Consider this: such an innovation has never been tried before anywhere in the world, and the potential is enormous. One way to measure it: the estimated market size is in the billions of dollars.
The RDSP is similar to the familiar RRSP in that it allows money to be invested tax free until withdrawal. Up to 500,000 Canadians who live with a disability may be eligible for the plan. There is a $200,000 lifetime contribution limit but no annual limit and matching funds are available from the Canada Disability Savings Grant as well as a Disability Savings Bond.
And it gets better: most provinces have exempted the RDSP from asset or income classification. This is crucial, Vickie explains, as those eligible for provincial or territorial disability benefits are often restricted in their ability to accumulate assets. Unearned money is usually ‘clawed back' dollar for dollar. The policy restricts one's ability to save and plan for future financial security without losing money and services now. The RDSP changes that, enabling people with disabilities to accumulate assets and have a safe place to build a nest egg. There is a lot more to the RDSP than that, you can go
here for the details.
How did the RDSP happen? According to Vickie, it had all the typical policy development ingredients we know and love: multiple consultations, independent research and an expert panel. The original idea, however, was born in the community. This is the other half of the formula: the hand in the soil.
Since it was founded in 1989, PLAN has talked to thousands of individuals with disabilities and their families about what they want in life. Their approach, while simple, was revolutionary. "Traditionally, the attitude towards people with disabilities has been, let's get them services," said Vickie, but she and co-founder Al Etmanski found that one-dimensional.
"We asked people to talk about the elements they considered critical to have a good life. Most people talked about close connections with friends and family and the freedom and ability to pursue their interests," she said. From these consultations, PLAN quickly recognized that financial security was a big part of that equation so began to look for ways to help families achieve it. Eventually that led to the RDSP.
"The original idea was for a tax credit, but it never caught on," explained Vickie. "Everything changed as soon as we started calling it a Disability Savings Plan." That concept clicked with people, reminding them of the familiar RRSP and RESP.
This framing allowed them to build momentum, as the response shows. "I just gave a talk to 500 people at Community Living Ontario," said Vickie, "and when I asked how many had heard of the RDSP, the majority put up their hands." Not bad considering the plan has been available for eight months and perhaps just in the nick of time.
"People are realizing that we may be entering a period when government services could diminish and they want to make sure they have other options for their financial security," she said. There are signs that Vickie could be right. After all, Canadians recently learned we face a $50 billion federal budget shortfall this year.
It's a good thing this country has innovative and caring organizations like PLAN out there. Vickie and PLAN weren't searching for a new financial product to make money. Rather, they saw a need for something that could benefit people in their community while strengthening our national economy and society. Their next challenge is to scale up the communities of support and
create networks of care around those that need them.
If that's not effective public service, we don't know what is.
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