People with either physical or developmental disabilities in the Province of Ontario may be eligible to receive benefits under the Ontario Disability Support Program (ODSP). The ODSP is administered by the Ministry of Community, Family and Children's Services. This program which is often called the Disability Pension is available to people who are over 18 years of age and to those who meet a very closely regulated set of criteria. These rules surround issues of assets and income of the person with the disability and their medical condition. The purpose of this program is to provide a basic level of income, prescription drugs and dental care to adults with disabilities. It also provides some basic programs such as the current employment program which is designed to encourage people receiving benefits to enter into the workplace and to retain employment opportunities. For many people with disabilities in Ontario, it is important to maintain these benefits even though they are somewhat limited. It should also be noted that the benefits under this program are payable until the person with the disability reaches age 65 at which time the Canada Pension Plan, Old Age Security and the Guaranteed Income Supplement programs take over. Under these programs, the person will continue to receive a modest income, prescription drugs but they will lose their entitlement to funded dental care.
As previously mentioned, the Ontario Disability Support Program is essentially a pension plan for people with disabilities. It contains several components which will be discussed here in a summary format since the full details of each category are far too lengthy and complex for a web site discussion. If you wish to gain further insights into the Ontario Disability Support Program, please do not hesitate to contact the "Special Needs" Planning Group for assistance and direction.
The Ontario Disability Support Program provides a person with a disability with a tax free monthly cheque based upon the person's actual expenses up to a maximum of $1042.00. This amount is reduced to $796.00 if the person with a disability is living in the family home or in a "room and board" situation. The amount of the cheque can be reduced by employment income and other sources of income. After November 1, 2006, a recipient of ODSP benefits will have any employment earnings deducted from the ODSP cheque at the rate of 50% of the amount earned. (an employment bonus of $100 will be added to the cheque as a result of the recipient being employed) Under this directive, the ODSP cheque and entitlement to the program in general can easily be eliminated if a person becomes employed and earns too much In addition, other income will reduce the ODSP benefit cheque dollar for dollar. However, under a fairly new development, a person receiving benefits under the ODSP program is allowed to receive voluntary payments of up to $5,000 in any 12 month period and unlimited amounts of money if used for disability related expenses without affecting his entitlement to benefits.
Over and above the monthly cheque, a person receiving benefits has access to a drug plan which entitles him to listed prescribed medications and a dental plan which entitles him to basic dental coverage. Quite often, the drug and dental cards are of tremendous benefit to people with special needs since medications are frequently required as a result of the disability. This factor alone can make the preservation of the government program essential. If a person qualifies for benefits under the ODSP, he may qualify for up to an additional $250 for a special diet allowance provided that the special diet was prescribed by an approved medical advisor. This extra funding has been added to the program in recognition of the fact that special diets may well be imperative to a person with a disability and the costs are often unmanageable for an individual receiving only basic funding.
Employment Supports are also available through the ODSP program. These supports are designed to reduce or eliminate disability-related barriers to finding and keeping an income earning position of employment. A person with a disability can access the following assistance under the employment support section of the ODSP.
If a person qualifies for employment benefits under ODSP then the services he or she can receive are as follows:
Assistance Developing an Employment Plan
Employment Preparation and Training:
Job Coaching
Job Placement
Technical Aids
Interpreter, Reader, Note taker, Intervener Services
Transportation Assistance While in Training Program
All in all, it is easy to see that to live on only the ODSP benefits is not living in the lap of luxury. The cost of living in most communities of Ontario far exceeds the benefits available to the people with disabilities. The preceding review is simply a generalization of life on the ODSP but it can be much more involved than that. If you are interested in a more in depth view of the ODSP program, simply contact Graeme Treeby at The "Special Needs" Planning Group and he will provide you with additional information.
A person who wishes to receive ODSP benefits must qualify for them on both a financial and medical basis. The Government's position is that it should be the payer of last resort when it comes to the ODSP program. This means that all other assets and income of the person with the disability must be almost exhausted before the ODSP program will begin to pay. The regulations surrounding the assets and income of the person with the disability will follow.
The regulations stipulate that a person applying for or receiving ODSP benefits must not own liquid assets in excess of $5,000 for a single person or $7,500 for a married person plus $500 for each dependant child. If an applicant or recipient exceeds these values, they are not eligible for benefits. There is no clear definition of liquid assets however, it is generally accepted that liquid assets are cash in the bank and "near cash" items like GIC's, RRSP's (under some circumstances these too can be exempt from being liquid assets under the Act), some in-trust accounts, some art work and collections. The regulations specifically exempt several assets from being considered liquid assets. This means that people can own the following without it being counted against them.
A Person's Principal Residence
A Vehicle of Any Value
A Second Vehicle of up to $15, 000 Used for Employment
Tools of Trade of a Member of the Benefit Unit
Student Loans
Prepaid Funeral Programs
Some Compensation for Pain and Suffering
Inheritance or the Proceeds of an Insurance Policy of up to $100,000, Held in Trust (Inheritance Trust)
Cash Surrender Value of a Life Insurance Policy including a Segregated Fund up to $100,000
Inheritance or the Proceeds of an Insurance Policy of Unlimited Amounts Held in a Henson Trust (See Henson Trusts in Tools and Techniques section)
Income can come in many forms. Most often, we think of income as being related to employment and for many people, that is their only source of income. When we discuss income as it relates to people with disabilities, we must focus on all potential sources. It should also be noted that there are a great number of rules and regulations which define exemptions from income according to the ODSP. The following will summarize those items which typically are considered to be income and we will explore how they are treated by the ODSP.
All wages, salaries, casual earnings or any remuneration paid pursuant to a training program.
All regular or periodic payments received under any annuity, pension plan, superannuation scheme or insurance benefit.
All payments received under a mortgage agreement.
All pensions or other payments received pursuant to the legislation of any other country.
All payments in cash or in kind for spousal and or child support received pursuant to a court order or judgement of any jurisdiction anywhere or payments in cash or in kind made pursuant to an agreement.
All payments received as a retainer from a Children's Aid society for being available to provide emergency care.
All payments received where the recipient is a sponsored immigrant or nominated relative under the Immigration Act .
Any payments received from the sale or disposition of an asset unless otherwise exempt.
All compensation awards for pain or suffering in excess of $100,000.
All interest earned from the proceeds of a compensation award regardless of the amount of the award.
Dividends earned from a life insurance policy that are not otherwise exempt.
60% of gross income earned by renting out self-contained quarters.
The greater of $100 or 60% of gross rental income earned for lodging provided without meals.
The greater of $100 or 40% of gross rental income earned for lodging provided with meals.
It should also be noted that there are also a large number of items that are specifically excluded from the income calculation. They are:
Fifty percent (50 %) of earnings from employment
Earnings of a dependent child of the recipient of ODSP benefits.
Earnings of dependent adults attending secondary school on a full time basis or a training program.
The proceeds from the sale of a principal residence provided those proceeds are used to purchase another principal residence within twelve months of the closing date of the sale.
Interest earned on the allowable asset limits (i.e.: $5,000 for single person)
Refundable tax credits including the Canada Child Tax Benefit.
Payments from the Ontario Child Care Supplement for Working Families.
Reimbursement for child care expenses under the Ontario Child Care Tax Credit.
Funds received in the form of student loans.
Interest earned on the capital of an inheritance trust if it is retained in the trust and provided that the trust capital plus interest earned is less than $100,000.
All payments from the inheritance trust including interest earned provided that it is used for the purchase of disability related items and services.
Payments from the inheritance trust for non-disability related purposes up to a maximum of $6,000 per 12 month period.
Proceeds from a court judgement or legal settlement or an award from a statutory tribunal relating to compensation for pain and suffering up to a maximum of $100,000.
Dividends from an exempt insurance policy and loans against the face value of an exempt insurance policy provided that: The cash surrender value of the policy is less than $100,000. The dividends remain inside the policy. Loans against the face value of the policy provided they are used for disability related items and services or education and training expenses incurred because of the person's disability.
An amount of $6,000 in any 12 month period in the form of gifts, payments or "in kind" for any purpose from any source including trusts and life insurance policies.
Payments from any source in the form of gifts or voluntary payments for disability related items and services or for education and training incurred because of the disability of a member of the benefit unit.
Donations received from a religious, charitable or benevolent organization for any purpose limited to $100,000 per recipient lifetime in conjunction with the $100,000 amount allowed for an inheritance, trust or insurance policy. The exemption amount is $100,000 in total from all three sources.
40 % of gross rental income and 60 % of gross board and lodging income or $100 which ever is greater. (I.e.: the portion of rental income not included in income is listed here as exempt income)
Loans used for an approved purpose. Approved purposes are the following: The purchase of disability related items or services. Expenses for health related reasons as supported by a medical doctor. Business loans. Ontario Student Assistance Program payments for tuition, books, child care, educational supplies and other compulsory fees related to a post-secondary institution. Loans for assets which are exempt (i.e. motor vehicles, principle residences) Loans for the purchase of household items necessary for the well being of any member of the benefit unit.
First Nations settlements not made under the Indian Act or a Treaty.
Payments for ODSP employment supports.
Payments received under the Developmental Services Act.
An adoption subsidy received from a Children's Aid Society under the Child and Family Services Act.
Transitional Skills Grand received under the Employment Insurance Act.
LEAP incentive payments under the Learning Earning and Parenting Program.
In conclusion, the Ontario Disability Support Program has a very complicated set of rules and regulations surrounding the qualification process. People with disabilities who have assets in excess of the allowable amount are not eligible for benefits and people who have income will have to use it first, before receiving benefits from the ODSP. The financial issues must be sorted out before a person will qualify for benefits and a great deal of planning should be done around making certain that assets and income do not fall into the hands of the person with a disability by mistake. This could also make a person ineligible for benefits.