Inspired by the discussion on Monday with Stephanie Cadieux, the MLA for Surrey South, during Private Members statements, I reintroduced a Private Members’ bill to protect Registered Disability Savings Plans (RDSPs) and Registered Education Savings Plans (RESPs) from creditors.

Registered Retirement Savings Plans (RRSPs) were first introduced federally in 1957. Legislation enabling Registered Retirement Income Funds (RRIFs) was subsequently brought forward in the late 1970’s thereby permitting seniors to withdraw their RRSP funds over time instead of all at once or through purchase of an annuity. Since that time, most provinces, including British Columbia, have recognized the importance of protecting RRSPs and RRIFs from creditors in the event of personal bankruptcy. They have passed legislation to protect RRSPs and RRIFs from being seized during bankruptcy. This provides a bankrupt individual a glimmer of hope that they will not be destitute in their old age. Here in British Columbia, such seizures are governed by the 1996 Court Order Enforcement Act.

In 2008 the Federal Government passed legislation to allow for the creation of Registered Disability Savings Plans (RDSPs). The RDSP is a federal, tax-deferred, long-term savings plan for people with disabilities who want to save for the future. Unfortunately, under the Court Order Enforcement Act,  RDSPs  are not listed as a registered plan in BC’s legislation and are therefore not exempt from creditor protection. Therefore, should an individual with an RDSP go into debt, their savings in the RDSP will not be protected from seizure.

The province of Alberta has already taken such measures and amended their Civil Enforcement Act to include RDSPs under Section 92.1(I): Exemption of registered plans and registered disability savings plans. Legislation has also passed in Alberta protecting RESPs from creditors.

By ensuring the financial security and well-being of those living with disabilities, we are not only providing the individuals and their loved ones with a sense of security, we are also reducing the strain on social services that incurs when individuals are unable to care for themselves. By also including RESPs in section 71.3 of the Court Order Enforcement Act, we are protecting children who, through no fault of their own, might see their education investment seized by creditors.

Below I reproduce the text and video of my introduction, as well as the accompanying media release.

Text of Introduction

A. Weaver: I move that a bill intituled the Court Order Enforcement Amendment Act, 2017, of which notice has been given in my name on the order paper, be introduced and read a first time now.

I’m pleased to be introducing a bill intituled the Court Order Enforcement Amendment Act, 2017. Inspired by a discussion on Monday, I’m reintroducing this for the second time.

Registered retirement savings plans are protected in this province from creditors in the case of personal bankruptcy. Protecting these funds provides a small safeguard that individuals undergoing bankruptcy will not be completely destitute in their old age. It’s good law that most provinces in Canada have adopted.

However, there is no protection for funds that are part of a registered education savings plan or a registered disability savings plan. These are important funds that need equal protection. Recognizing that a child should not have their education investment seized due to misfortune that befalls their parents, the Alberta government passed legislation a number of years ago protecting RESPs. It’s with this in mind that I bring this bill forward today.

This bill amends the Court Order Enforcement Act to ensure that RESPs and RDSPs are protected by law from creditors.

Mr. Speaker: The question is first reading of the bill.

Motion approved.

A. Weaver: I move that the bill be placed on the orders of the day for second reading at the next sitting of the House after today.

Video of Introduction

Media Release

Andrew Weaver introduces bill to protect RDSPs and RESPs from creditors
For immediate release
November 1, 2017

VICTORIA, B.C. – Andrew Weaver, leader of the B.C. Green Party, today introduced a bill to protect Registered Disability Savings Plans (RDSPs) and Registered Education Savings Plans (RESPs) from creditors. The bill, the Court Order Enforcement Amendment Act, 2017, was first introduced by Weaver in March 2016 and would provide RDSPs and RESPs with the same legal protection as Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Fund (RRIFs).

“A child should not have their education investment seized due to misfortune that befalls their parents,” said Weaver

“RDSPs and RESPs are important funds that British Columbians use to save for their futures. It is only fair that they have the same protection as RRSPs and RRIFs. This protection provides a glimmer of hope to those facing bankruptcy that they will not be destitute in their old age. There is no reason why British Columbians who are eligible for the disability tax credit and contribute it into RDSPs shouldn’t have that same glimmer of hope should they ever face a dire financial situation.

“I have been raising this issue in the house for three years now. Government has had plenty of time to consider it. It is time that government acts to finally give British Columbians’ RDSPs and RESPs the equal protection they deserve.”

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Media contact
Jillian Oliver, Press Secretary
+1 778-650-0597 | jillian.oliver@leg.bc.ca