Old Age Security

Overview

Old Age Security is a universal program that pays pension benefits to people who are age 65 or older, who have 10 or more years of residency in Canada over the age of 18.

Benefits are indexed to the Cost of Living and reduced or taxed back based on income.

History

1952 Old Age Security Act introduced (Federal)
1965 Act modified to accommodate the introduction of CPP
1967 Guaranteed Income Supplement added to the Act
1977 Eligibility and portability amended

Old Age Security Benefits (Updated January 2009)

Application for benefits must be made six months prior to attaining age 65.

Old Age Security pension of $516.96 is paid monthly to those with 40 years residency in Canada and prorated for those with fewer years. Benefit are taxed back from recipients with high incomes.

Guaranteed Income Supplement Benefits (Updated January 2009)

Guaranteed Income Supplement is paid to those Old Age Security pensioners with income below a certain level. The benefit is $652.51 monthly if single or married to a non-pensioner. The benefit is $358.01 if married to a pensioner or spouse allowance recipient. Benefits are taxed back from recipients with moderate to high incomes.

Spouse's Pension Allowance (Updated January 2009)

Spouse's Pension Allowance are paid to the spouses of an Old Age Security pensioner while they are 60-65 years old. The benefit is $947.86 for those married to someone receiving the Guaranteed Income Supplement or $1,050.68 for someone widowed. Benefits are taxed back from recipients with moderate to high incomes.

Portability

Pensioners who have resided in Canada after age 18 for at least 20 years receive benefits no matter what country they reside in.

Pensioners who have resided in Canada after age 18 for less than 20 years receive benefits while residing in Canada , for the first 6 months of leaving Canada and if they emigrate to a country with a reciprocal agreement with Canada.

Funding

Current payments are made from general revenues.

Taxation

Old Age Security benefits are taxable income to the recipient.

Guaranteed Income Supplements and Spouse's Pension Allowances are not taxable.

Old Age Security benefits are taxed back from recipients with high incomes