Change to Rules on Registered Disability Savings Plan (RDSP) Withdrawals Effective January 30, 2013

BCCPD Community Update
February 2013

Dear Community Partner,

The Ministry of Social Development (MSD) has made changes to the rules governing withdrawals from the Registered Disability Savings Plan (RDSP). As a result, RDSP holders have more choices about what they can use withdrawals from their Plan for without impacting their eligibility for provincial disability benefits (PWD or PPMB).

According to the new policy, RDSP holders can use withdrawals in various ways without jeopardizing their benefits. If an individual chooses to save money to buy a large item that exceeds their asset limit (a single person on PWD is allowed to have up to $5,000 in assets), they will no longer risk losing their benefits as long as they clearly document that the funds originated directly from their RDSP.

For example, Bob starts making regular withdrawals from his RDSP. He wants to save enough money to buy a $10,000 boat. Under the old rules, having more than $5,000 in the bank or owning a non-exempt asset worth more than $5,000 would mean that he could no longer receive his PWD income (under normal circumstances a boat would not be an exempt asset). The new policy allows Bob to save money and own a boat without risking his PWD.

For More Information

The MSD’s policy on assets and exemptions for the RDSP is at:

Or contact us about this change or for general information on the RDSP at 604-872-1278 or toll free 1-800-663-1278