The proposed amendments to the Old Age Security Act aim to increase the monthly pension for seniors aged 65 and older by 10%, raising it to $756.32 starting January 1, 2023. Additionally, the plan adjusts the employment income exemption for seniors receiving the Guaranteed Income Supplement, increasing the threshold for allowable earnings from $5,000 to $6,500.
This amendment primarily impacts seniors, especially those receiving pensions or considering returning to work. Lower-income seniors may feel the effects differently depending on their qualifications for the pension and how the new income exemptions apply.
Increasing pensions will require additional funding from the government, raising concerns about overall public spending and budget constraints. For the government, this means a potential increase in deficits or reallocation of funds from other programs. Citizens might also see taxes increase if the government pursues additional revenue to cover these costs.
Supporters argue that the financial boost is crucial for seniors facing rising living expenses and inflation. They see the increase as an overdue acknowledgment of the contributions made by older citizens. Additionally, raising the income exemption encourages them to work without fearing loss of benefits, promoting engagement in the workforce.
Critics contend that the financial burden of the amendments could threaten public finances and sustainability, particularly in the face of national debt and budget limitations. They also express concern that the increased support mainly benefits current pensioners at the expense of those not yet eligible or low-income seniors lacking sufficient support, thereby potentially introducing inequities. Furthermore, the complexity of new income calculations could lead to confusion and unfair distribution of benefits.
That the bill be now read a second time and referred to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities.