Human Resources and Skills Development Canada
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Human Resources and Skills Development Canada

www.hrsdc.gc.ca

Canada’s Public Pension system

Old Age Security

Guaranteed Income Supplement

GIS - Background

  • For low-income seniors
  • Added to the OAS pension
  • Based on income and marital status
  • Based on combined income, if the applicant has a spouse/common law partner
  • Not taxable

Notes 1

GIS - Eligibility

Must:

  • Be in receipt of an OAS pension
  • Reside in Canada
  • Apply in writing

GIS - Start and End Guidelines


Starts (later of):

  • Month after 65th birthday
  • Month after application is approved

Ends (earliest of):

  • In July
  • 7th month after month of departure from Canada
  • Month after death
  • At client’s request

 

Notes 2

GIS Increase – Budget 2005

The increases took place in two (2) phases: January 2006 and January 2007

  • The single recipient rate increased by $18 each year; a total increase of $36 by January 2007
  • The combined couples rate increased by $29 each year; a total increase of $58 by January 2007

Notes 3

How much can be received?

  • GIS rates for single, widowed or divorced pensioners
  • Select your annual income range:
    Example: From $2,568.00 to $2,591.99 = GIS $527.02 /mth
    (Jan – March 2008)

For more information on rates for OAS, GIS, Allowance and Allowance for the survivor visit our website www.hrsdc.gc.ca

Notes 4

Notes

  1. Under the OAS Program:
    a spouse is:
    a person legally married to someone else
    a common-law partner is:
    a person who is living in a conjugal relationship with someone of the same or opposite sex for at least one continuous year.

    Poverty among seniors has declined from 21.3% in 1980 to 5.6% in 2004.

    1,593,392 people received GIS benefits in October 2007

    GIS - $7.3 billion paid out in 2007

    GIS projected - $6.7 billion in 2006 and $19 billion in 2030

  2. Ends (first of):
    • With payment for month of June - (if income/combined income in the previous year exceeds the maximum income allowed, or if client failed to reapply or file income tax return with CRA);
    • Paid for the month of departure and 6 additional months;
    • Month after death - Last payment made for the month of death
    • At client’s request. - month in which the Minister approves client’s request to cease benefit. (See Section 9.1 OAS Act [Minister’s approval to cease])
    • Automatic Renewal for clients who file their tax return. If client does not file tax return, an application is sent.
  3. As announced in the 2005 Budget speech on Feb. 23/05, the Government of Canada increased the Guaranteed Income Supplement (GIS), the Allowance, and the Allowance for the survivor by seven percent. This was phased in over two years.

    The Guaranteed Income Supplement was increased by $36 a month for single recipients and by $58 a month for couples. The increases were phased in over two years. Half the increase took effect January 2006 and the other half took effect in January 2007.

    Effective January 2006 the maximum single rate was increased by $18 a month and the combined married rate by $29 a month. Identical increases were made in January 2007.

    Everyone receiving the GIS, Allowance and Allowance for the Survivor automatically got the following increases in January 2006 and January 2007. For those who were not in receipt of GIS, take up letters were sent in November and December 2005 and January 2006 and included a GIS increase message at that time. The mail-out included letters to 25,000 seniors who would become eligible for the GIS once the income cut-off were changed as a result of the increase. The 25,000 newly eligible seniors were identified through CRA data. For the 2007 increase, we are looking at 26,000 newly eligible seniors.

    The following table provides the amount of the increase for each group:

      2006 2007
    GIS Single 18.00 18.00
    GIS Married both 65 14.50 for 14.50 for
      each pensioner each pensioner
    GIS Married with spouse under 60 18.00 18.00
    GIS (Married with spouse 14.50 14.50
    receiving the allowance)    
    (Allowance) 14.50 14.50
    Allowance for the Survivor 18.00 18.00

    For additional information about the GIS increase: http://www.sdc.gc.ca/en/cs/comm/sd/budget/2005/seniors.shtml

  4. Maximum Monthly GIS Payment
    The following chart shows the maximum monthly Guaranteed Income
    Supplement that may be paid for January to March 2008 based on Nil
    income    .
       
    GIS – Single $ 634.02
    GIS Married - Spouse/Partner is:  
    an OAS pensioner (65+) $ 418.69
    a Non-pensioner (under 65) $ 634.02
    an Allowance pensioner (60-64) $ 418.69
    Allowance $ 921.00
    Allowance for the Survivor
    (widow/widower 60-64)    		 $ 1,020.91

 

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Date Modified:
2008-01-07