Advancing the Inclusion of People with Disabilities 2007

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Chapter 3: Income Support, Benefits and Service Delivery

Research has shown that people with disabilities are more likely to have a low income, and to rely on government programs for income support. Based on the Survey of Labour and Income Dynamics, in 2005 the average earnings of working age Canadians with a disability were almost 10 percent lower than those without disabilities ($33,600 versus $37,200). In that same year, 59 percent of people with disabilities cited a source other than earnings as their main source of income. The Government of Canada is committed to improving the situation of people with disabilities and has many programs and initiatives which provide income support and related benefits that are directed at people with disabilities. They include: Canada Pension Plan Disability, Employment Insurance Benefit and the new Registered Disability Savings Plan. The Government of Canada is also working to improve the delivery of its programs and services to people with disabilities.

1. Canada Pension Plan Disability

In 2006-07, almost 304,000 individuals with severe and prolonged disabilities, along with 90,000 of their dependent children, received $3.4 billion in Canada Pension Plan Disability (CPPD) monthly benefits. The 2007 maximum monthly benefit is $1,054, and the average is $777 per month. The children's monthly benefit in 2007 is $204.68 for each eligible child.

The CPP is jointly managed by the federal, provincial and territorial governments and, in June 2006, Ministers of Finance approved changes to the contributory requirements for CPP Disability benefits for plan members with 25 or more years of contributions. These changes were included in Bill C-36, which amended the Canada Pension Plan in May 2007. The amendment allows individuals with 25 or more years of contributions to meet the contributory requirements for the disability benefit with valid contributions in three of the last six years, instead of the current requirement of four of the last six years. The amendment will come into force once formal approval has been received from the provinces/territories. Applicants will still have to demonstrate that they meet the medical eligibility criteria. The amendment extends CPPD coverage to thousands of contributors with a long history of labour force attachment and their children.

Since January 31st, 2005, beneficiaries who stop receiving CPPD benefits because they returned to work have been entitled to have their benefits automatically re-instated if their disability returns within a period of two years and prevents them from working. During 2006-07, 319 CPPD clients were able to have their benefits quickly re-instated this way. Indications are encouraging that more CPPD recipients are attempting to return to work. Automatic Reinstatement provides a safety net for those who are ready to attempt to return to work but fear the loss of CPP benefits.

2. Employment Insurance sickness benefits

Employment Insurance provides up to 15 weeks of sickness benefits to help people who cannot work due to short-term illness, injury or quarantine. Sickness benefits are intended to complement a range of other supports that are available for longer-term illness and disability, including benefits offered through employer-sponsored group insurance plans, private coverage held by individuals, and long-term disability benefits available under the Canada Pension Plan and provincial / territorial plans. Annual spending for EI Sickness Benefits in 2005/06 was $859.2 million.

3. Registered Disability Savings Plan: Canada Disability Savings Grants and Bonds

An important consideration for parents caring for a child with a severe disability is how best to ensure that child's financial security when they are no longer able to provide support. Budget 2006 announced that the Government would establish a small group of experts to examine the issue and provide their advice. In July 2006, an Expert Panel on Financial Security for Children with Severe Disabilities was appointed. The Panel submitted its report, A New Beginning, in December 2006.³²

In Budget 2007, the Government announced its intention to act on the recommendations of the Panel by announcing the introduction of a new Registered Disability Savings Plan (RDSP). As proposed, RDSPs will be available starting in 2008 and would be based generally on the existing registered education savings plan (RESP) design.

An individual eligible for the Disability Tax Credit (DTC), their parent or other legal representative, would be allowed to establish an RDSP. The DTC-eligible individual would be the plan beneficiary. The plan would consist of three main elements:

1. Parents, beneficiaries and others wishing to save would be able to contribute to an RDSP. Contributions to an RDSP for a beneficiary would be limited to a lifetime maximum of $200,000. Contributions would be permitted up until the end of the year in which a beneficiary attains 59 years of age.
2. Annual RDSP contributions would attract Canada Disability Savings Grants (CDSGs) at matching rates that depend on family income and the amount contributed, up to a maximum lifetime CDSG limit of $70,000. Where family net income does not exceed $74,357, the matching rate on the first $500 of contributions would be 300 percent, and the matching rate on the next $1,000 of contributions would be 200 percent. Where family net income exceeds $74,357, the matching rate on the first $1,000 of contributions would be 100 percent. These income thresholds are for the 2007 taxation year and would be indexed to inflation for 2008, when RDSPs become operational, and for subsequent taxation years. An RDSP would be eligible to receive CDSGs up until the end of the year in which the plan beneficiary attains 49 years of age.
3. Canada Disability Savings Bonds (CDSBs) of up to $1,000 per year will be provided to RDSPs established by low and modest-income families, up to a maximum lifetime CDSB limit of $20,000, and would not be contingent on contributions. The maximum annual $1,000 CDSB would be paid to an RDSP where family net income does not exceed $20,883. The CDSB would be phased out gradually for those with family net income between $20,883 and $37,178. These income thresholds are for the 2007 taxation year and would be indexed to inflation for 2008, when RDSPs become operational, and for subsequent taxation years. An RDSP would be eligible to receive CDSBs up until the end of the year in which the plan beneficiary attains 49 years of age.

Only the plan beneficiary, or the beneficiary's legal representative, would be permitted to receive payments from an RDSP. Payments from an RDSP would be required to commence by the end of the year in which the beneficiary attains 60 years of age.

To ensure that RDSP payments do not reduce federal income-tested benefits, amounts paid out of an RDSP would not be taken into account for the purpose of calculating income-tested benefits delivered through the income tax system, such as the Canada Child Tax Benefit and the goods and services tax credit. In addition, amounts paid out of an RDSP would not reduce Old Age Security or Employment Insurance benefits.

Provinces and territories provide income support for people with disabilities through means-tested programs. The Expert Panel noted that, for the RDSP program to be effective, RDSP assets should not disqualify a plan beneficiary from receiving provincial or territorial income support provided to people with disabilities. The Expert Panel also noted that payments from the plan should supplement - not reduce - income support provided under these programs at least until the level of income support plus RDSP payments exceeds the Low Income Cut Off for the province or territory.

The Minister of Human Resources and Social Development, in collaboration with the Minister of Finance, will work with the provinces and territories to ensure that the RDSP is an effective savings vehicle to improve the financial security and well-being of children with severe disabilities.

It is estimated that this measure will increase federal expenditures by $25 million in 2007-08 and $115 million in 2008-09.

RDSPs will help provide a brighter future for children with severe disabilities and give parents greater peace of mind in planning for that future.

4. Service Canada

Service Canada provides one-stop easy access to Government of Canada benefits and services needs through channels "of choice," whether in person, by phone, by mail or the Internet.

Service Canada's Charter commits to providing clients with:

• choice in how to contact Service Canada;
• information that is easy to understand; and
• service in the official language of one's choice.

People with disabilities face numerous challenges in carrying out their daily activities and Service Canada wants to minimize these challenges and ensure any issues are addressed with its clients with disabilities.

To this end, Service Canada's Management Board approved a plan in December 2005 that aims to increase and enhance accessibility of Service Canada's offices, Web sites, forms, applications, telephone, and mail services. This was also the impetus for the creation of a directorate to specifically focus on the service needs of people with disabilities. Work to implement the plan began in 2006. Part of this work included improvements of service to the deaf and hearing impaired. Employment Insurance (EI) TTY services were enhanced during the year and consolidated to one number:
1-800-678-2785.

In June 2006, Service Canada's Management Board approved a 3-year Strategy for People with Disabilities. The Strategy aims to transform services for people with disabilities by ensuring accessibility through all channels (Internet, by mail, by phone and in-person) and simplified and bundled services to build a world class government service that has best practice in serving people with disabilities. Work is already underway on a Disability Benefits Service Offering with initiatives to simplify forms and processes, and to create internal and external linkages to improve the client experience when people with disabilities deal with Service Canada. This will also ensure they get information about all the programs and services to which they are entitled.

a. External Advisory Group

An External Advisory Group (Advisory Group) enables Service Canada to seek advice, input, and feedback from non-governmental disability organizations involved in service delivery on ways to improve the accessibility and the delivery of Service Canada's programs and services for people with disabilities. The membership represents a broad spectrum of disabilities and its members are drawn from across Canada.

b. Research

Service Canada commissioned Strategic Counsel to conduct public opinion research with Organizations Supporting People with Disabilities. The contract for this undertaking was established in 2005 and the final report was received in March 2007.  

A research study on International Best Practices in Service Delivery for People with Disabilities was also obtained by Service Canada in December 2006. The research was conducted by Dr. Michael Prince from the University of Victoria.

Highlights of these studies follow.

c. Communications

Service Canada has adapted desks in some of our offices to improve access for people with disabilities. The Service Canada Web site includes the "talk to me" option-an automated reading service for visually impaired users. The 11 most frequently requested forms are available online in formats accessible to people with disabilities. All Service Canada publications are produced in large print and available in alternate format.

Regional Initiatives

Service Canada is about improving the delivery of Government of Canada programs and services to citizens through easy-to-access, personalized service. It undertakes many regionally-based initiatives to accomplish this goal.

New Brunswick

• In conjunction with the Premier's Council on the Status of Disabled Persons, a Disability Awareness Strategy was implemented across the New Brunswick Service Canada region. Service Canada centres across the region planned and organized internal and/or external disability awareness activities. A final report containing best practices and recommendations was prepared. It will be distributed throughout the New Brunswick Service Canada network.
• A profile to improve service offerings is being developed and a reference group has been established. The working group finished the first of three phases of the People with Disabilities Client Segment Profile and is currently working on the second phase.
  • Phase I included a diagnostic (snapshot of New Brunswick People with Disabilities situation) and an inventory of programs and services.
  • Phase II involves a needs assessment and gap analysis. A consultation group was organized in early 2007 to obtain feedback on service offerings and service gaps.
  • Phase III will lead to recommendations to management, based on the results of previous phases.

Manitoba

• In Winnipeg, Service Canada provides leadership and input to the Opportunities Fund (OF) Community Planning Group which meets quarterly to address common issues and provide input to OF programming.
• In Brandon, the OF Project (Enhanced Employment Assistance Service) is located in the Youth Office. Career and Employment Youth Services (CEYS) provides people with disabilities with client assessment services and case management services, utilizing appropriate interventions which will help people with disabilities successfully integrate into the labour market or educational system.

Saskatchewan

• In southwest Saskatchewan, Service Canada is involved with a committee that is focusing on youth with disabilities as they complete secondary education. Staff will provide transition services to achieve specific outcomes which promote the transition from school to work.
• Service Canada in northern Saskatchewan is a stakeholder on the Employment Networking Initiative. This coalition of Human Service Agencies provides integrated services for people with disabilities, ultimately leading to full inclusion and employment.
• Service Canada in Saskatchewan has completed a community profile of people with disabilities. This will help the province to ensure that the bundling of services are relevant and effective for the disability community.

Ontario

• Under the Opportunities Fund for Persons with Disabilities, Ontario Region partnered with the Canadian Working Group on HIV and Rehabilitation to sponsor an event aimed at raising awareness of workplace issues related to the employment of persons with episodic disabilities, thereby reducing systemic barriers to their participation in the labour force.
• The Adaptive Technology Workstation in Windsor is equipped with a variety of unique features enabling the person to customize their individual situation including: adjustable speaker volume and table housing; touch screens or various pointing devices to assist persons with limited manual dexterity; alternative keyboards; and adjustable font sizes and magnifying features to assist those with reduced vision.
  • All Citizen Service Agents in the Service Canada Centre have been provided with soft-skill training (ADAPT), to remove service barriers and better equip them to welcome and assist people with disabilities.
• A partnership between Service Canada and the Province of Ontario where Service Canada Ontario Region and the Ontario Disability Support Program (ODSP) Toronto Region has initiated a pilot for the bundling of CPPD benefit and ODSP benefit information in the Service Canada Centres (Toronto East / West) and the ODSP Toronto Regional Offices.
  • This bundling provides a holistic approach to the income support information that is provided to people with disabilities in the Service Canada Centres and the Ontario Disability Support Program Income Support offices.

Alberta / NWT / Nunavut Region

• Clients reported a very positive assessment of the CPP Disability/Assured Income for the Severely Handicapped (AISH) pilot in Central Alberta. This partnership provides an improved overall experience for mutual clients of Service Canada and the province of Alberta. Phase 2 (Southern Alberta) commenced February 2007.  
• Six International Medical Graduates were offered one year terms as Disability Officers and gained experience in the Canadian work environment.
• The region made contact with the provincial and municipal governments to explore their interest in collaborating on a Centre of Excellence for People with Disabilities for Alberta.

British Columbia and Yukon

• With the establishment of the Disability Action Plan (DAP), the BC/Yukon Region committed to developing a "coordinated approach to disability policy and programming." The region-wide action plan offers a way for staff from various departmental responsibility areas to improve program coordination by sharing disability-related information.
• Service Canada in the BC/Yukon Region works closely with the BC Government through a senior level regional federal/provincial committee to address common disability issues. These include initiatives regarding personal supports under the BC Government Disability Strategy, as well as improved federal/provincial coordination of employment programming for people with disabilities.
• Service Canada has taken an initial step towards integrating benefit delivery between the two governments. An agreement between Service Canada and the BC Ministry of Employment and Income Assistance will allow clients to provide consent for one set of Medical Records to be used in adjudication of both the federal and provincial programs, thereby providing clients with a streamlined and cost-effective application process.

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• ³¹ In 1999, Maclean's magazine voted this 33-page product as the worst government form.
• ³² Finance Canada, The Report of the Minister of Finance's Expert Panel on Financial Security for Children with Severe Disabilities, 2006 (available at: www.fin.gc.ca/activty/pubs/disability_e.html).

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