Good afternoon. Thank you for this opportunity to speak to you about the concern outlined in the written brief presented to this committee on behalf of Families Matter Co-operative. That brief was prepared by me, John Toft, secretary of the co-op, and by Kenneth C. Pope, a Henson trust specialist. Copies of this brief have also been sent to the expert panel that is considering changes to legislation to help in estate planning for people with development disabilities.
The Families Matter Co-operative Inc. is for and about people with developmental disabilities. It is an Ottawa-based social cooperative with a mission to improve the lives of people with developmental disabilities.
I come to this committee as a parent of a developmentally disabled person, my adult autistic son, Adrian, and as a co-op member. My personal interest begins and ends with the perpetual support and advocacy for my son that my family and I undertook the day he was diagnosed with autism. This concern and advocacy is lifelong, and it will extend well beyond my lifetime and affect the lives and interests of my other sons, as they continue to advocate for and support him.
I want my son to live in reasonable comfort for the rest of his life. I want him to have a reasonable standard of living, reasonable housing, sufficient supports, worthwhile employment, and social and recreational opportunities. In short, I want him to be able to live as close to a normal life as possible and to be a valued member of society.
These goals are hindered by current taxation policies. My goal here is to urge you to take a leadership role in changing such policies at the federal level and in working with the provinces to see that the changes you make are not clawed back but enhanced.
One personal example illustrates the current taxation system. I am a retired teacher receiving an Ontario teacher's pension. On my death and the death of my wife, Ann, my son will receive a survivor's pension at 50% of my pension. Current provincial legislation allows for a dollar-for-dollar clawback for Adrian from his provincial support benefit, ODSP, of every dollar of my pension benefit that he receives. Through that clawback, his benefit could be reduced to zero, and he would lose his eligibility for drug and dental benefits too. If he then paid for such benefits from his survivor's pension, he could end up worse off receiving the pension than not receiving it.
Pension plan advisers tell me it is necessary to change legislation at both the federal and provincial levels to eliminate this effect. They and Ken Pope advise me that the solution is to allow such pensions to be placed in Henson trusts. There the money would be protected with no effect on a person's eligibility for ODSP benefits.
Legislative changes to enable parents and grandparents to roll over RRSP and RIF moneys into Henson trusts for the benefit of their children and grandchildren with development disabilities were considered in the February 2003 budget. Proposed amendments to the Income Tax Act to put these changes into practice were drafted and ready in 2003. We ask you, the finance committee, to recommend implementation of these changes, as well as similar changes to also allow pensions to be placed in Henson trusts.
The brief we submitted contained a number of other recommendations you may consider. However, the implementation of the specific changes just discussed would make significant improvements to lives of people with developmental disabilities.
The written brief concluded as follows: “By taking these measures and others along similar lines, more people with developmental disabilities would become contributing members to Canada. People currently considered to be burdens on society could become assets to that society.”
Members of the Finance Committee, you have the opportunity to recommend changes in legislation to provide that federal leadership and societal change. My dream and hope is that you will provide that leadership.