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

• The Personal Support Worker Retirement Savings Innovation Program will provide up to $42.2 million in contributions funding to organizations over three fiscal years. This funding will support 24-month pilot projects to incentivize PSWs in saving for retirement.

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

The Department of Employment and Social Development is finalizing its assessment 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. A total of 25 proposals were received by the Department, of which 6 applications were invited to submit detailed proposals following initial assessments. Results of assessments and recommendations to fund screened-in projects will be provided to the Minister of Jobs and Families by the end of June 2025, to enable the Department to proceed to negotiating Contribution Agreements with successful applicants.
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 will be 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 can 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.

The program will provide up to $42.2 million in contributions funding to organizations over three fiscal years. 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 (PSWs) are an unregulated workforce that provide the majority of direct care for Canadian seniors and persons with 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. The federal government has made the following investments to support PSWs and the long-term care sector:
• $1 billion to P/Ts through the Safe Long Term Care Fund for long term care, which could be used for hiring more staff and/or raising wages.
• $3 billion through Budget 2021 for long term care, which could be used to address health workforce issues.

To help address this challenge, on February 7, 2023, the federal government announced it would provide $1.7 billion over five years to support wage increases for personal support workers and related professions, as federal, provincial, and territorial governments work together on how best to support recruitment and retention. Since then, the federal government has signed agreements with the governments of British Columbia, Newfoundland and Labrador, and the Northwest Territories to support personal support worker wage increases and training by providing $232 million, $25 million, and $5.3 million to these governments, respectively.

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

The 2024 Fall Economic Statement announced that, as provinces and territories (other than BC, NL and NT) have not agreed to bilateral deals to raise the wages of personal support workers, the federal government intends to introduce a new refundable tax credit for personal support workers, potentially modelled on the design of the tax credit for volunteer firefighters. To implement this measure, legislative changes would be required.

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. The Government has made the following investments to support PSWs and the long-term care sector:
o $1 billion to P/Ts through the Safe Long Term Care Fund for long term care, which could be used for hiring more staff and/or raising wages, and
o $3 billion through Budget 2021 for long term care, which could be used to address health workforce issues.