Protecting disability and education savings plans needs to happen

Media Release: March 15, 2016
Andrew Weaver – Protecting disability and education savings plans needs to happen
For Immediate Release

Victoria B.C. – Andrew Weaver, Leader of the B.C. Green Party and MLA for Oak Bay-Gordon Head, says the changes he proposes in protecting RESPs and RDSPs from creditors are needed in British Columbia.

“I asked the Minister of Justice about this problem in question period two years ago,” says Weaver. “At the time, the Minister said that it was an important issue and that she’d be glad to work with me to move it forward. Yet two years have now passed and still nothing has changed.”

Today Weaver introduced a private member’s bill intituled “Court Order Enforcement Amendment Act”. The bill would add Registered Disability Savings Plans (RDSPs) and Registered Education Savings Plans (RESPs) to the list of plans protected under the act.

Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs) are already protected in BC and most other provinces from creditors in the case of personal bankruptcy. Such protection provides a glimmer of hope that individuals undergoing bankruptcy will not be destitute in their old age.

“If a person files for bankruptcy in B.C., their RRSPs are protected from being seized by creditors,” says Weaver. “However, the same protection does not exist for RESPs or for RDSPs. A child should not have their education investment seized due to misfortune that befalls their parents. Alberta has protected RESPs; we should follow suit.”

“I’ve waited for action on this issue for two years. I haven’t seen any meaningful progress from the government on this simple legislative change, so that’s why I’m proposing it today. My hope is that they finally act on it.”

– 30 –

Media Contact
Mat Wright – Press Secretary Andrew Weaver MLA
1 250 216 3382
mat.wright@leg.bc.ca