The Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act
The Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act (Bill C-3) was passed on June 26, 2011. This Act enhances the Guaranteed Income Supplement (GIS), the Allowance (ALW) and the Allowance for the Survivor (ALWS). It assists low-income seniors who rely almost exclusively on their Old Age Security (OAS) pension, GIS, ALW or ALWS benefits.
The purpose of the OAS program is to help seniors meet their immediate, basic needs and maintain a minimum standard of living in retirement.
Old Age Security Program
What are the highlights of this Act?
- Effective July 1, 2011, seniors with little or no income other than the OAS pension and the GIS may receive additional benefits of up to $600 for single seniors and up to $840 for couples per year.
- Single recipients with an annual income (other than the OAS pension and the GIS) of $2,000 or less, and couples with an annual income of $4,000 or less, will receive the full increase. Above these income thresholds, the amount of the top-up is reduced by $1 for every $4 of income (apart from OAS benefits) until completely phased out.
- The increase does not affect the GIS earnings exemption. Seniors can continue to take advantage of the $3,500 GIS earnings exemption. This means that a single pensioner earning $3,500 or more can keep an additional $1,500 in annual GIS benefits.
- The GIS/ALW/ALWS top-up is reviewed quarterly and indexed in accordance with changes in the Consumer Price Index (CPI). Like all OAS benefits, the GIS/ALW/ALWS top-up never decreases in the event of a decline of the CPI.
- Seniors who receive GIS/ALW/ALWS do not need to apply for the top-up. They will have their GIS/ALW/ALWS benefits automatically adjusted to reflect the change.
Who will benefit from this new measure?
More than 680 000 seniors across Canada will benefit. Women represent approximately two-thirds, or 460 000, of the GIS recipients to benefit from this measure.
Legislation
The enhancement to the GIS, the ALW and the ALWS is effective as of July 1, 2011. To see the changes, visit the LEGISinfo website.
How will the changes affect me?
To find out how the enhancement to the GIS, the ALW and the ALWS may affect you, visit the Service Canada website.