Summary#

This bill changes the Old Age Security (OAS) Act to give a 10% increase to the full OAS pension for everyone aged 65 or older and to let low‑income seniors keep more of their Guaranteed Income Supplement (GIS) when they work. It also removes the separate 10% top‑up that currently applies only to people aged 75 or older by making the higher base amount apply to all (Bill s. 7(1), repeal of s. 7(5)). The bill updates the GIS earnings exemption from employment or self‑employment from $5,000 to $6,500 and expands the partial exemption band (Bill s. 2(b.1)).

• Raises the full monthly OAS pension for all 65+; the act sets it at $756.32 for the payment quarter starting January 1 of the stated year, with normal indexation after (Bill s. 7(1)).
• Ends the separate 75+ top‑up by folding the 10% increase into the base for everyone 65+ (repeal of s. 7(5)).
• Increases the GIS full earnings exemption to $6,500 and extends the 50% partial exemption on the next $13,000 of earnings (max total exemption $13,000) (Bill s. 2(b.1)).
• Keeps the voluntary deferral increase at 0.6% per month for late applicants (Bill s. 7.1(2)); removes now‑redundant clauses (repeal of s. 7.1(5)-(6)).
• Updates related definitions and rounding rules used to calculate benefits (Bill s. 12(6)(b), s. 22(1)).

What it means for you#

• Households (seniors 65+)
  • OAS pension increases by 10% for everyone aged 65 or older. The act sets the full monthly pension at $756.32 for the payment quarter that starts January 1 of the specified year; amounts continue to be indexed quarterly after that (Bill s. 7(1)).
  • Seniors aged 75+ keep the same level of OAS as today because the 10% is built into the base for all ages and the separate 75+ top‑up is repealed (Bill s. 7(1); repeal of s. 7(5)).
  • If you defer starting OAS, your pension still rises by 0.6% for each month of deferral until approval (Bill s. 7.1(2)).
• Workers (low‑income seniors on GIS)
  • You can earn up to $6,500 from work in a year without any GIS reduction (was $5,000) (Bill s. 2(b.1)).
  • You also get a 50% exemption on the next $13,000 of earnings above $6,500. This means:
    • Maximum total earnings counted for exemption rise to $19,500.
    • Maximum total deduction used in the GIS calculation rises to $13,000 (from $10,000) (Bill s. 2(b.1)).
• Allowance/Allowance for the Survivor recipients (ages 60–64)
  • These benefits use the “pension equivalent,” which the bill aligns with the updated full OAS amount. This change can raise Allowance amounts in line with the higher OAS base (Bill s. 22(1)).
• High‑income seniors
  • The bill does not change the OAS recovery tax rules under existing law. Seniors with high incomes who already repay some or all OAS through the recovery tax would see their net gains reduced under those existing rules. Data unavailable on the number affected by this bill.
• Timing
  • The bill applies the new OAS amount starting in the payment quarter that begins on January 1 of the stated year, and applies the new GIS earnings exemption for months after June of the stated year (exact year not shown in the provided text) (Bill s. 7(1); s. 2(b.1)).

Expenses#

Estimated net cost: Data unavailable.

• No official fiscal note found in the provided materials. Data unavailable.
• Statutory spending effects embedded in the bill:
  • Raises the OAS full pension base for all 65+ by 10% and removes the separate 75+ top‑up, holding 75+ harmless (Bill s. 7(1); repeal of s. 7(5)).
  • Increases GIS outlays by allowing higher earnings before benefits are reduced: full exemption to $6,500 and an expanded 50% partial exemption up to an additional $13,000 (max total deduction $13,000) (Bill s. 2(b.1)).
• No explicit appropriations, taxes, or fees are stated in the bill text. Ongoing costs would flow automatically through existing OAS/GIS programs. Data unavailable for yearly totals.

Proponents' View#

• Improves fairness by giving the 10% OAS increase to all seniors 65+, not only those 75+ (Bill s. 7(1); repeal of s. 7(5)).
• Helps with cost of living by raising the base OAS amount, which is indexed quarterly to inflation under existing rules (Bill s. 7(1)).
• Encourages and rewards work by low‑income seniors by raising the full earnings exemption to $6,500 and expanding the partial exemption band, increasing the maximum deduction used in GIS from $10,000 to $13,000 (Bill s. 2(b.1)).
• Simplifies administration by removing the age‑based top‑up and using a single OAS base amount for all seniors 65+ (Bill s. 7(1); repeal of s. 7(5)).
• Aligns related benefits by updating the “pension equivalent” used to calculate Allowance amounts, so these benefits also reflect the higher OAS base (Bill s. 22(1)).

Opponents' View#

• Cost risk: Expanding the 10% increase to all 65–74 recipients and easing GIS clawbacks would raise federal statutory spending; no official cost estimate is provided in the bill (Data unavailable).
• Targeting concerns: A universal 10% OAS increase goes to all seniors 65+, including middle‑ and higher‑income seniors who are not in financial need; the bill does not add new income targeting (Bill s. 7(1)).
• Interaction effects: Higher OAS is taxable and may affect eligibility for some income‑tested provincial/territorial benefits that use net income; the bill does not address these downstream impacts. Data unavailable on scale.
• Implementation details: The text leaves specific start-year blanks (“January 1, [year]” and “after June [year]”), which may create timing uncertainty until finalized (Bill s. 7(1); s. 2(b.1)).
• Policy trade‑offs: Raising the GIS earnings exemption benefits working seniors but may offer no gain to non‑working GIS recipients; the bill does not include complementary measures for non‑workers (Bill s. 2(b.1)).