The Ministry of Employment and Income Assistance will fully exempt the federal government's Registered Disability Savings Plan when calculating clients' eligibility for disability assistance.

British Columbians with disabilities who are eligible for the Government of Canada's Disability Tax Credit and their families or legal guardians will be able to contribute up to a lifetime maximum of $200,000 (after tax dollars) to a Registered Disability Savings Plan before they turn 60.

The federal government has released details of proposed changes to legislation that would enable a national Registered Disability Savings Plan to be in place beginning in 2008.

The exemption by British Columbia's Ministry of Employment and Income Assistance will allow clients and their families to keep disbursements from the Registered Disability Savings Plan on top of their regular disability assistance payments.

Further, British Columbia will exempt assets held in the Registered Disability Savings Plan when calculating clients' eligibility for their monthly disability assistance.

The Registered Disability Savings Plan exemption is intended to encourage families and friends to save for the future needs of children and adults with severe disabilities. The exemption supports the government's Disability Strategy and commitment to build the best system of support in Canada for persons with disabilities.

British Columbians who are eligible for the Government of Canada's Disability Tax Credit but are not yet receiving it are encouraged to apply for it now so that they will be eligible for the new Registered Disability Savings Plan when introduced.