Question Period Note: PERSONAL SUPPORT WORKER RETIREMENT SAVINGS INNOVATION PROGRAM

How is the Government working to strengthen the working conditions of Personal Support Workers?

Personal support workers (PSWs) provide vital care and support services for seniors and persons with disabilities across this country. The Government has committed to strengthening their retirement security.

As announced in Budget 2023, the Personal Support Worker Retirement Savings Innovation Program (PSW-RSIP) will provide up to $42.2 million in contributions funding to successful applicants over three fiscal years. This funding will support 24-month pilot projects to incentivize participating PSWs in saving for retirement.

By offering these supports, the Government will be able to assess incentives to encourage workers lacking retirement security coverage in saving for their future.

IF PRESSED on funding to support wage increases for personal support workers

The Government continues to work with provincial and territorial governments on how best to support recruitment and retention of personal support workers.

IF PRESSED on REASONS WHY an AGREEMENT HAS only BEEN signed with common wealth TO DATE

The Government took steps to enhance the success of this pilot program, which included a targeted solicitation of an organization that indicated a capacity to implement the project within the timeframes in addition to the open Call for Concepts.

Common Wealth, was invited to submit a proposal for consideration in Spring 2025. Like all proposals received this proposal was evaluated according to eligibility criteria of the program, the originality of its savings mechanisms, and its ability to offer broad national coverage. 

The Department of Employment and Social Development has finalized its assessments of received proposals from eligible organizations interested in the new Personal Support Worker Retirement Savings Innovation Program (PSW-RSIP).

The program was announced and launched through two separate intakes on November 25, 2024 – an open call for concepts and a solicited call for proposals. A total of 25 proposals were received by the Department, of which 6 applications were invited to submit detailed proposals following initial assessments.

Common Wealth was invited through the solicited call for proposals, and their proposal was the highest scoring project among all proposals reviewed under the Government-approved hybrid assessment process that began in November 2024. The Minister of Jobs and Families announced the launch of Common Wealth’s pilot project in an event on September 3, 2025.

At this time, no other organizations have been funded.

Eligible organizations for funding under the Program include not-for-profit groups, unions, for-profit organizations, unions, boards of trade, industry associations, cooperatives, Indigenous organizations and 2SLGBTQI+ organizations. Organizations applying were asked to provide additional information about their project, including detailed projections for participation by Personal Support Workers (PSWs), savings and incentives paid, and of administrative costs.

Eligible recipient organizations could apply for funding worth between $1.0 million and $30.0 million over the total project duration. Eligible pilots must operate for 24 months and end no later than December 31, 2027.

Up to 15% of contributions funding can be used to pay administrative costs of initial recipients for not-for-profit organizations, while for-profit organizations can use a maximum of 8% of contributions funding to pay administrative costs. Selected projects will be required to:

1) Make use of a tax-assisted private savings vehicle (e.g. registered pension plans, group savings plans, group RRSPs or TFSAs, etc.).

2) Contain an element that wholly or partially matches funds invested for retirement by participating PSWs.

3) Agree to provide data to the Department to allow for the assessment of the program.

The PSW profession or occupation is not a job title uniformly recognized or used in all provinces and territories. The PSW-RSIP will determine eligibility based on job descriptions of PSW participants which align with the 2021 National Occupations Classification (NOC) system definitions. Any participating PSWs that report working in occupations such as Nurses, aides, orderlies and patient service associates (NOC 33102), or as Home support workers, caregivers, and related occupations (NOC 44101), would be considered eligible end recipients of program funding as PSWs under the Program.

Selected projects will also need to outline strategies for meeting the program's performance measurement data requirements, ensuring the registration and eligibility of participating PSWs, ensuring accurate incentive payments, and how they will market the pilot project(s) to reach PSWs.

Funding to support wage increases for personal support workers

Personal support workers are an unregulated workforce that provide the majority of direct care for Canadian seniors and persons with functional limitations or disabilities. Virtually all care assistance with activities of daily living is provided by PSWs. PSWs provide care primarily in long-term care facilities, in home care, and in hospitals.

The Government continues to work with provincial and territorial governments on how best to support recruitment and retention of personal support workers.

Through the Aging with Dignity bilateral agreements with provinces and territories, federal investments are also supporting specific provincial and territorial initiatives, including helping support workforce stability in home and long-term care. The agreements that were finalized in 2023-24 include:

$2.4 billion over 4 years to improve access to home and community care

$3 billion over 5 years for long-term care from the 2021 federal budget to:

apply standards of care in long-term care facilities

help support workforce stability, including wage top-ups and improvements to workplace conditions for health care staff, including personal support workers

The Aging with Dignity bilateral agreements, including funding to support personal support workers, are posted on the following website: https://www.canada.ca/en/health-canada/corporate/transparency/health-agreements/shared-health-priorities/aging-dignity-bilateral-agreements.html

In line with Budget 2023 commitments, the Government announced the launch of the Personal Support Workers Retirement Savings Innovation Program, on November 25, 2024.

The program provides funding to eligible organizations such as not-for-profits, businesses, unions, cooperatives, Indigenous organizations, and others, to support pilot projects that provide savings incentives for Canada’s hard-working Personal Support Workers (PSWs) through tax assisted savings vehicles such as group Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs).

Intake and application processes for this program are now closed.

“Personal support workers are the backbone of long-term care for our seniors and for persons with functional limitations or disabilities. Personal support workers perform jobs that are mentally and physically exhausting, but they often do not enjoy the same job protections, compensation, and benefits as their peers in the health care sector.

To complement the investments the federal government has made to improve access to home care or care in a safe long-term care facility, including the working conditions and wages of personal support workers, the government is proposing new investments to support Canada’s personal support workers.

Budget 2023 proposes to provide up to $50 million over five years, starting in 2023-24, to Employment and Social Development Canada to develop and test innovative solutions to strengthen the retirement savings of personal support workers without workplace retirement security coverage.”

Budget 2023: A Made in Canada Plan, 28 March 2023

“A strong economy depends on a thriving care sector and the hard workers behind it. Through these measures, we’re supporting personal support workers by helping them build a financial safety net and retire with confidence. With the collaboration and advocacy of unions in the healthcare sector, these efforts will strengthen its workforce and ensure Canadians have access to high-quality, and reliable care across the country.”

– The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario, September 3, 2025

“We recognize the incredible work of personal support workers across the country. They take care of our loved ones and provide support to older Canadians who want to age at home for as long as possible. They deserve the same retirement benefits as other health care workers. Everyone should have access to a secure retirement.”

– The Honourable Stephanie McLean, Secretary of State (Seniors), September 3, 2025