Toronto-based BMO Investments Inc. is partnering with Vancouver-based Planned Lifetime Advocacy Network (PLAN) to educate Canadians about the registered disability savings plan (RDSP).

“What we have found is that people in generally who are living with a disability many have not even heard of the RDSP,” Robert Armstrong, vice president and head of managed solutions, BMO Global Asset Management. “What we want to do is we want to make sure these individuals have the opportunity to learn more about what is an RDSP and how it may benefit them.”

As part of its three-year relationship with PLAN, BMO representatives will travel the country with the non-profit organization to give presentations to community organizations about the RDSP. The presentations will explain the benefits of the savings vehicle as well as highlight who is eligible to open a plan and how they can go about doing so.

“It’s not something on paper that [individuals] want,” says Armstrong, “they want to talk to a subject matter expert.”

BMO also hopes to raise the awareness of RDSPs with the financial industry generally. Branch employees at BMO are being reminded of the RDSP and its benefits, says Armstrong, and the bank is also hosting RDSP events nationally to bring financial advisors — from any firm — up to speed on the details of this relatively new product.

In addition to the educational presentations, BMO is also offering a four dollar discount on all monthly Practical, Plus, Performance, Premium and Air Miles Everyday Banking Plans to BMO RDSP beneficiaries as part of its partnership with PLAN.

The RDSP was first introduced in 2008. Benefits of the plan include:

  • contributions grow on a tax-deferred basis;
  • government incentives could add up to an additional $90,000 per individual;
  • virtually no effect on most other disability-related benefits;
  • payments can provide regular or lump sum income with no restriction for what the funds are used.