APPENDIX B: CORE SUPPORTS

IV. Financial Supports

Overview

Persons with disabilities are over represented in the group of Albertans that don’t have enough income to provide “the basics” – food, shelter, clothing, health care and the ability to care for their children. Some are able to achieve a minimal standard of living most of the time, but run into difficulty when the unexpected happens. (E.g. illness, an increase in rent, the need to pay a damage deposit or having to find a new daycare) In addition, Canadians across lifespan have a wide scope of expenditures related to their disability that Canadians without disability do not have to endure. These expenditures are often identified as financial stressors for the person/family member supporting the individual or the individuals themselves.

Not unlike the broader population, 1991 national survey data identified prescription and non-prescription drugs as the major “out-of-pocket” costs not covered by government programs or private insurance. For individuals who are able to cover their disability-related expenditures, they are typically able to do so because they are employed and are reasonably compensated for this employment. Labour force participation studies indicate the majority of Canadian adults with disabilities do not access financial supports to fund disability costs or support their basic needs.

Approximately 88% of Canadians with disabilities report some kind of personal income and 60% report employment income of some kind. The remaining group depend on other sources of income or report no income at all. Of the approximately 10% of Canadians with disabilities identified as having no personal income at all, family and friends were viewed as the primary sources of financial support.

Canadians with disabilities that access non-employment funding supports appear to primarily get this funding from social assistance programs.

Context of Financial Supports in Alberta

Financial Supports or Income Supports refer to a variety of monetary supports available to Albertans who are not able to finance their basic needs due to temporary or permanent unemployment or to insufficient earnings from existing employment. Examples of programs that provide financial supports to Albertans with disabilities are AISH (Assured Income for the Severely Handicapped) and Workers Compensation Board Benefits.

The availability of financial supports is dependent on the age of onset and the cause of the disability. For example, persons who are born with a disability may only have access to financial supports based on their eligibility for an existing disability that relates to a social support programs. In contrast, persons who sustained their disability through the negligence of another person have the option of suing an individual to obtain financial supports from the defendant’s insurance policy. Further, persons who sustain their disability within the context of employment have the option of obtaining temporary financial support from the Workers’ Compensation Board. Persons with disabilities may access more than one financial support program to assist them with basic and disability-related expenditures.

Assured Income for the Severely Handicapped (AISH)

The largest provider of financial supports to persons with disabilities in Alberta is the Assured Income for the Severely Handicapped program. Alberta Human Resources and Employment is responsible for administering this program through various employment and labour offices in Alberta. Eligibility for AISH depends on the individual having a severe handicap that causes a substantial limitation in the individual’s ability to participate in the labour force. Albertans residing in the community are eligible for a maximum AISH benefit of $850 per month. In many places in Alberta, it is impossible to live a dignified life on $850 per month. Albertans residing in a hospital or nursing home are eligible to receive a modified AISH benefit, which consists of room and board, and a handicap benefit.

In 2000, approximately 26,700 Albertans accessed the AISH program to cover basic and disability-related expenditures. Alberta Human Resources and Employment estimates that there were 29,305 AISH recipients for the 2001/2002 fiscal year. Albertans receiving AISH have access to medical supports including Alberta Health Insurance and Alberta Medical Services Card (covers optical, dental, prescription, ambulance services, and other health-related needs). Prior to the completion of an AISH application, Albertans are required by AISH policy to apply for Canada Pension Plan disability benefits.

A review of the AISH program by the Premier’s Council on the Status of Persons with Disabilities and various community contacts identified a number of issues. For example, AISH benefits do not reflect the financial expenditures incurred by Albertans for disability-related supports not funded by government programs. Also, there is no agreement between AISH and Alberta Children’s Services to transition children with disabilities into the AISH program once they become adults.

Supports for Independence – Assured Support

Alberta Human Resources and Employment administers a second income support program called Supports for Independence (SFI). The SFI program provides income support to persons with or without disability. In 2001, approximately 28,700 Albertans accessed the SFI program for income support. Within SFI, there is a disability-related income program referred to as the Supports for Independence Assured Support program.

This program provides financial supports that cover housing, food, transportation, clothing, medical, familial responsibilities, and re-entry into the labour market. The expectation of this program is that the recipient will access supports on a “short-term” basis until his or her disability is no longer a barrier to employment. Alberta Human Resources and Employment has a number of specialized employment programs to assist Albertans in their re-entry into the workforce (See Employment Supports section).

Workers Compensation Board (WCB) Benefits

The WCB program is a disability insurance program funded by employers for Alberta employees to access in circumstances where an employee has sustained injury in the employment environment. This disability insurance program protects employers from litigations by providing an avenue for employees who are injured during work-related responsibilities to access financial support for employment-related injuries, lost income, and health care. The WCB program is a short-term financial support program that has an expectation that the individual will return to their original position or a position with comparable compensation.

Canada Pension Plan - Disability Benefits

The CPP Disability Benefits program is a federal pension program available to Canadians who are no longer able to work full time due to disability but have contributed to CPP for a minimum time period during their employment, are under 65 years old, and have been identified as disabled under the Canadian Pension Plan legislation.

Unlike the AISH program, the CPP Disability Benefits program provides income support but not medical benefits. The CPP benefits program pays out a monthly benefit to eligible Albertans that are based on the individual’s period of employment, medical information and earnings.

For Albertans receiving the CPP benefit and deemed by their medical doctor to be candidates for re-entry to the workforce, there is an opportunity for employment/education retraining through the Canada Pension Plan Vocation Rehabilitation program.

This program provides individuals with a disability benefit and financial support for education and re-employment until such time that the individual’s income has exceeded the allowable program limits. In 1999-2000, the Canadian government paid $2.6 billion in benefits to 287,000 people with disabilities and $245 million in benefits to 97,000 children of people with disabilities who contributed to CPP.

Disability Tax Credits

The Canadian taxation system provides disability tax credits for persons with severe and prolonged mental or physical disabilities and their family/support persons. For Albertans who are not paying into the tax system, some but not all of their credits may be transferred to family members that provide them with care on a regular basis. The scope of tax credits available to Canadians with disabilities includes the Federal Disability Supplement, moving expenses, tuition, medical expenses, personal support fees paid to a group home, and renovations to existing property and new construction to increase accessibility.

A Need for Financial Supports in Alberta

Not all individuals with disabilities require financial supports. Individuals who do require financial supports usually find their basic and disability related costs exceed their available resources. Persons with disabilities do have a higher cost of living than persons without disabilities due to the inaccessible nature of society to accommodate the diversity of needs of these citizens.

Numerous attempts have been made by governments to rectify this inequity and increase the economic power of persons with disabilities. This has largely been done through supportive programs aimed at increasing levels of education and employment. While these initiatives are important to increasing the user capacity of persons with disabilities, it is of equal importance that these programs produce employment options that can sufficiently support the disability expenditures experienced by many Albertans. Persons with disabilities will not be able to cover all of their own costs until they experience equitable opportunities in the labour market and experience equitable purchasing power.

Challenges Associated with Financial Supports

The challenge associated with financial supports for individuals has two views:

• From the perspective of the provider, or provincial government, the challenge is identifying the scope of need, coming to terms with who is responsible for meeting this need and to what extent, so that all Albertans can fully participate in their communities.
• From the perspective of the recipient, a person with disabilities or their family/support persons, the challenge is justifying and explaining to funding bodies that many Albertans are being forced to live in poverty by marginal employment options, inflexible employment laws, poor supports for families caring for children with disabilities, and high expenditures for disability supports.

In an average year it is estimated that a person with disabilities or their family/support persons will pay $1,000 to $25,000 for disability related expenditures over and above basic living expenses. Consequently, persons with disabilities or their family/support persons need to make incomes that are $1,000 to $25,000 more than persons without disabilities just to have a comparable disposable income.

All Albertans value their independence. Appropriate and adequate employment opportunities that allow individuals to care for themselves are the optimum option. However, many Albertans are often concerned that their attempts to take part in training, education and the competitive workforce will lead to their loss of “disability” status and the invaluable additional supports it often provides. For many, this is a significant work disincentive. Criteria for acceptance under any of the programs clearly relate to an ability to work. Recipients therefore often carry the label of “permanently unemployable” just so they can maintain the valuable supports they need to get by.

Existing social assistance programs are not flexible enough to respond to the diverse and changing needs of Albertans. Program responses need to be individualized within the context of the person’s disabilities and actively involve persons with disabilities in the determination of their needs. One size doesn’t fit all.

Outcomes and Strategies

Specific Outcomes

1. The government of Alberta’s programs and policies will address the impact of disability, not the presence of disability.
2. The government of Alberta will involve persons with disabilities in the development and design of Alberta Human Resources and Employment policies and programs.
3. All Albertans will have financial security sufficient to meet daily living needs.
4. Disability financial supports will be seen as an investment, not a handout that carries the stigma of welfare.
5. Disability financial supports will enable all Albertans to make informed choices, and to participate in and to be included in all aspects of Canadian citizenship. The strengths, needs and preferences of all people must be respected.
6. Disability financial supports will reflect the real cost of living with a disability.
7. Disability financial supports will treat persons with disabilities with respect by giving them the option to self-declare, as all Canadians do in the taxation system.
8. Disability financial supports will be designed to provide an incentive to seek employment options. Currently, many Albertans are afraid that getting a job or taking job training could cause them to lose their “disability status.”

Visionary Outcome

All Albertans will have access to a standard of living and quality of life that ensures their health, safety, comfort and dignity.

Short-Term Strategies

Strategy 1: Separate income and personal supports for Albertans with disabilities.

Ideally, personal supports will help to overcome the barriers associated with living with a disability. Eligibility for income supports will be a separate matter, with monthly income payment levels simply based on the cost of living a life of dignity. In the case of Aboriginal people, this policy would apply on and off the reserve.

A person with a disability who is able to find paid employment that supports basic living needs will not lose the personal supports that are required to take part in work and live in the community. Nor will he or she lose enhanced disability-related health benefits, which are critically necessary.

Strategy 2: Revise Assured Income for the Severely Handicapped (AISH) to reflect the real cost of living with a disability.

Recommended Strategies

Assured Income for the Severely Handicapped (AISH)

119. Revise the provisions of the AISH program as follows:
• Separate eligibility for medical benefits from program eligibility.
• Increase the basic AISH payments in 2002 to reflect the cost of living and the real cost of living with a disability.
• Raise income exemption levels to $500 per month or 50% of the AISH benefits.
• Adjust annually the AISH amount by the cost of living index.
• Stop claw-back of AISH to offset Canada Pension Plan – Disability cost-of-living increases.
• Allow family and friends to offer financial assistance without reducing AISH benefits.
120. Implement mandatory disability awareness and sensitivity training for AISH administrators.
121. Require staff to be supportive when assisting consumers with the completion of applications, gathering data and correcting referrals to another department when appropriate.
122. Make AISH program descriptions and applications available in alternative communication formats, in keeping with government policy.
123. Use the same model for AISH as for the income tax system, relying on self-declaration with a mechanism for an audit.
124. Provide advocacy support for recipients of disability-related income support.

More Flexible Income Support Programs

125. Develop financial supports that encourage responsibility, personal accountability and self-management of funds.
126. Make eligibility regulations less complex and easier to understand.
127. Make it unnecessary for applicants to transfer to other programs to receive the benefits they require. Currently, AISH recipients go to Assured Supports if they require a hearing aid and those who need an ambulance service may need to go to Extended Care benefits.
128. Review programs to ensure consistency of benefits and equal entitlement regardless of the program.
129. Make the extended medical benefits the same as those available to seniors.
130. Ensure that financial supports are adaptable enough to cover additional costs such as damage deposits, utility hook-up costs and increases in utility rates.
131. Review financial supports to address discrimination against or unfairness towards single people with disabilities.

Enhanced Employment Opportunities

See Employment Supports section for specific recommendations.

More Flexible Transitions between Income Support and Employment

132. Provide an income supplement for a seamless transition from Services to Children with Disabilities to AISH at age 18 and from AISH to Old Age Security and Guaranteed Income Supplement at age 65.
133. Rapidly reinstate AISH after an unsuccessful employment attempt.
134. Continue entitlement to personal supports after entry or return to the labour market.
135. Continue extended care health benefits after a person with a disability returns to work.
136. Encourage temporary, short-term or part-time workplace experience without losing benefits.
137. Take a series of initiatives to quantify the extra costs of living with a disability in order to separate personal supports from income supports and encourage housing and estate planning for persons with disabilities.

Advocacy and Appeal Processes

138. Handle appeals in a quasi-judicial, fair, transparent and respectful manner, and provide timely hearings.
139. Ensure that staff that deal with AISH applicants are supportive – that they help persons with disabilities to complete applications and gather data, as well as refer them to the appropriate office department as required.
140. Establish a provincial standard for all staff to follow in interpreting policy and regulations relating to AISH applications.
141. Inform all recipients of disability supports about the appeal processes that are in place.
142. Provide the assistance of an advocate before and during an appeal process.
143. Send denied applications directly to the appeal process without an administrative review.