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Seniors' Pension Boost and Work Exemption

Full Title:
An Act to amend the Old Age Security Act (amount of full pension)

Summary#

  • This bill would raise Old Age Security (OAS) payments and let low‑income seniors keep more of their Guaranteed Income Supplement (GIS) when they work.
  • It increases the full OAS pension by 10% for everyone aged 65 and over, and updates related calculation rules.
  • It raises the annual work‑income amount that does not reduce the GIS from $5,000 to $6,500, and adjusts the partial exemption above that.
  • It keeps the standard 0.6% monthly boost if someone delays starting a partial OAS pension.

Key changes:

  • Full OAS amount set at $808.45 per month for the July payment quarter that follows the bill taking effect, then continues to adjust for inflation as usual.
  • Extends the 10% increase that currently applies at age 75+ so that people 65–74 also get it; removes the separate 75+ top‑up rule.
  • Raises the GIS employment/self‑employment earnings exemption to $6,500, plus lets seniors ignore half of the next $13,000 they earn.
  • Makes minor technical updates to definitions and rounding rules used in benefit calculations.

What it means for you#

  • Seniors aged 65–74
    • Your OAS cheque would rise by about 10%. For the first quarter after the change, the full monthly amount would be $808.45 before tax. Future amounts would still adjust with inflation.
  • Seniors aged 75+
    • Your total OAS would stay about the same as today (you already receive a 10% increase). The bill removes the special 75+ rule and applies one higher base rate to everyone 65+.
  • Low‑income seniors who work (GIS recipients)
    • You could earn up to $6,500 from a job or self‑employment before your GIS starts to go down.
    • After that, half of your next $13,000 in earnings would also be ignored. Example: If you earn $10,000, only $1,750 would count toward reducing your GIS ($6,500 fully ignored, plus half of the next $3,500 ignored).
    • Any earnings above about $19,500 would fully count toward GIS calculations.
  • Newcomers or others who qualify for a partial OAS pension
    • If you delay applying after you qualify, your monthly amount would increase by 0.6% for each month you wait, as under current practice (up to age 70).
  • Everyone on OAS/GIS
    • Small technical updates to how amounts are calculated and rounded could slightly change some payments by a few dollars, always rounded up to the next $4.

Expenses#

No publicly available information.

Proponents' View#

  • Helps seniors 65–74 keep up with higher costs of food, rent, and utilities by raising their monthly OAS.
  • Fairness: everyone 65+ would receive the same base increase, not just those 75 and older.
  • Encourages part‑time work by low‑income seniors by letting them keep more GIS when they earn from a job or small business.
  • Could reduce poverty among seniors and lessen pressure on food banks and community services.
  • Simple to understand for seniors: one clear OAS amount and a larger work‑income exemption.

Opponents' View#

  • Raises federal spending on seniors’ benefits and adds to long‑term program costs.
  • Gives a 10% OAS increase to high‑income seniors who may not need it, instead of targeting only low‑income households.
  • May overlap or interact with provincial/territorial income‑tested benefits in ways that reduce the intended gains for some seniors.
  • Administrative updates to calculations and rounding add complexity for government systems during the transition.