Old Age Security
Encyclopedia
The Old Age Security pension
(or OAS or OAS-GIS) is a taxable
monthly social security
payment available to most Canadians
65 years of age or older. As of July, 2011, the basic amount is C$533.70 per month. At tax time, recipients with 2010 incomes over C$67,668 must pay back a portion of their Old Age Security at a rate of 15% of net income. This is often referred to as a clawback. The OAS pension is fully clawed back for people with incomes over C$110,038.
Category 1 - Lived in Canada for at least 40 years after turning 18, OR
Category 2 - Born on or before July 1, 1952, AND between the time the applicant turned 18 and July 1, 1977, the applicant lived in Canada for some period of time, AND the applicant lived in Canada for the 10 years immediately before the application was approved.
If an applicant has not lived in Canada for all of the last 10 years because he/she gave up residence in Canada at some time, an applicant may still qualify for a full pension if he/she meets both conditions below:
1) Lived in Canada for the year immediately before the application was approved, AND
2) Prior to these last 10 years, the applicant lived in Canada after age 18 at least 3 times as long as the total of absences during the last 10 years.
1) Age 65 or older, AND
2) Canadian citizen or Permanent resident (Canada)
currently living in Canada, AND
3) Lived in Canada for the last 10 years.
For low income pensioners who earn little or no other income, the Old Age Security is supplemented by a Guaranteed Income Supplement (GIS), which is considered non-taxable income. The amount of the Guaranteed Income Supplement depends on income, marital status and the age of the spouse in married couples. As of July 2006, the maximum supplement for a single individual with no other source of income is C$597.53, and C$392.01 to each spouse of a married couple.
Old Age Security should not be confused with the Canada Pension Plan
, which is a contributory, earnings-related pension paid in addition to the OAS to those who have contributed to it.
Pension
In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...
(or OAS or OAS-GIS) is a taxable
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
monthly social security
Social security
Social security is primarily a social insurance program providing social protection or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. Social security may refer to:...
payment available to most Canadians
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
65 years of age or older. As of July, 2011, the basic amount is C$533.70 per month. At tax time, recipients with 2010 incomes over C$67,668 must pay back a portion of their Old Age Security at a rate of 15% of net income. This is often referred to as a clawback. The OAS pension is fully clawed back for people with incomes over C$110,038.
Eligibility Criteria
A person must apply to HRDC and meet the eligibility criteria to receive benefits.Full Pension
To receive a full OAS pension, a person must meet these conditions:Category 1 - Lived in Canada for at least 40 years after turning 18, OR
Category 2 - Born on or before July 1, 1952, AND between the time the applicant turned 18 and July 1, 1977, the applicant lived in Canada for some period of time, AND the applicant lived in Canada for the 10 years immediately before the application was approved.
If an applicant has not lived in Canada for all of the last 10 years because he/she gave up residence in Canada at some time, an applicant may still qualify for a full pension if he/she meets both conditions below:
1) Lived in Canada for the year immediately before the application was approved, AND
2) Prior to these last 10 years, the applicant lived in Canada after age 18 at least 3 times as long as the total of absences during the last 10 years.
Partial Pension
If an individual does not qualify for a full pension, he/she may qualify for a partial pension if he/she meets these conditions:1) Age 65 or older, AND
2) Canadian citizen or Permanent resident (Canada)
Permanent resident (Canada)
A Permanent Resident in Canada is someone who is not a Canadian citizen but who has been granted permission to live and work in Canada without any time limit on his or her stay...
currently living in Canada, AND
3) Lived in Canada for the last 10 years.
Social Security Agreements
Canada has social security agreements with a number of countries. These agreements may allow a person who has lived in Canada and another country (for example, the U.S.), to count years spent in the other country to qualify for the OAS pension.For low income pensioners who earn little or no other income, the Old Age Security is supplemented by a Guaranteed Income Supplement (GIS), which is considered non-taxable income. The amount of the Guaranteed Income Supplement depends on income, marital status and the age of the spouse in married couples. As of July 2006, the maximum supplement for a single individual with no other source of income is C$597.53, and C$392.01 to each spouse of a married couple.
Old Age Security should not be confused with the Canada Pension Plan
Canada Pension Plan
The Canada Pension Plan is a contributory, earnings-related social insurance program. It forms one of the two major components of Canada's public retirement income system, the other component being Old Age Security...
, which is a contributory, earnings-related pension paid in addition to the OAS to those who have contributed to it.
See also
- Basic incomeBasic incomeA basic income guarantee is a proposed system of social security, that regularly provides each citizen with a sum of money. In contrast to income redistribution between nations themselves, the phrase basic income defines payments to individuals rather than households, groups, or nations, in order...
- Guaranteed minimum incomeGuaranteed minimum incomeGuaranteed minimum income is a system of social welfare provision that guarantees that all citizens or families have an income sufficient to live on, provided they meet certain conditions. Eligibility is typically determined by citizenship, a means test and either availability for the labour...
- Canada Pension Plan / Old Age Security Review TribunalsCanada Pension Plan / Old Age Security Review TribunalsCanada Pension Plan / Old Age Security Review Tribunals are independent and mandated to hear of decisions made by Human Resources and Skills Development Canada on benefits under the Canada Pension Plan and Old Age Security Act. ....
External links
- FAQ about OAS from Service CanadaService CanadaService Canada is part of a Government of Canada-wide service transformation initiative aimed at responding to Canadians' expressed desire for better, more responsive, less cluttered service from Canadian governments...
- FAQ about GIS from Service CanadaService CanadaService Canada is part of a Government of Canada-wide service transformation initiative aimed at responding to Canadians' expressed desire for better, more responsive, less cluttered service from Canadian governments...