Guaranteed
Income Supplement (GIS)
Overview
The Guaranteed Income Supplement is a
monthly benefit paid to residents of Canada who receive a basic,
full or partial Old Age Security pension and who have little
or no other income. Guaranteed Income Supplement payments may
begin in the same month as Old Age Security pension payments.
Recipients must re-apply annually for the Guaranteed Income
Supplement benefit by filing an income statement or by completing
an income tax return by April 30. Thus, the amount of monthly
payments determined for the year may increase or decrease according
to reported changes in a recipient's yearly income. Unlike
the basic Old Age Security pension, the Guaranteed Income Supplement
is not subject to income tax. The Guaranteed Income Supplement
is not payable outside Canada beyond a period of six months,
regardless of how long the person has lived in Canada.
Eligibility Conditions
To receive the Guaranteed Income Supplement
benefit, a person must be receiving an Old Age Security pension.
The yearly income of the applicant or, in the case of a couple,
the combined income of the applicant and spouse or common-law
partner, cannot exceed certain limits.
Exception
Sponsored immigrants from countries with
which Canada has agreements are not eligible for Guaranteed
Income Supplement and Allowance during their sponsorship period
(up to a maximum of 10 years) unless he/she:
• has 10 years of residence in Canada after
the age of 18; or
• had resided in Canada as a Canadian citizen or permanent resident on or prior
to March 6, 1996 and will become eligible for benefits January 1, 2001 or
earlier; or
• was receiving benefits under the Old Age Security Act for the month of March
1996 or earlier.
Amount of
Benefits
The amount of the Guaranteed
Income Supplement to which a person is entitled depends on his or her marital
status and income.
Income for Guaranteed Income Supplement
purposes is defined the same way as it is for federal income
tax purposes, with a few specific exceptions - the most important
of which is Old Age Security pension income. Income, therefore,
includes any other money which a pensioner receives, such as
an earnings-related retirement pension, foreign pensions, interest,
dividends, rents, wages or workers' compensation payments.
If married or living in a common-law relationship, the combined
income of the pensioner and spouse or common-law partner must
be taken into account.
Generally, income earned in the previous
calendar year is used to calculate the amount of benefits paid
in a payment year which is from July of one year to June of
the next year. However, if a pensioner or spouse has retired
or has a loss of pension income, an income estimate for the
current calendar year may be substituted for the income of
the preceding calendar year.
There are two basic rates of payment for
the Guaranteed Income Supplement. The first applies to single
pensioners - including widowed, divorced or separated persons;
and to married pensioners whose spouses or common-law partners
do not receive either the basic Old Age Security pension or
the Allowance. The second applies both to legally married couples
and couples living in common-law relationships, where both
spouses or common-law partners are pensioners. The Guaranteed
Income Supplement single rate is higher than the Guaranteed
Income Supplement married rate. However, each spouse or common-law
partner in a couple is entitled to a benefit, so the combined
benefits for a couple are higher than those for a single person.
If a person is receiving a partial
Old Age Security pension, the maximum Guaranteed Income Supplement
may be increased by the difference between that partial pension
and the full Old Age Security pension.
For a single, widowed, divorced or separated
pensioner, the maximum monthly supplement is reduced by $1
for each $2 of other monthly income.
If both spouses or common-law partners
in a couple are receiving the Old Age Security pension, the
maximum monthly supplement of each pensioner is reduced by
$1 for every $4 of their other combined monthly income.
There is one exception to these two basic
rates - for a couple in which only one spouse or common-law
partner is a pensioner and the other is not in receipt of either
the basic Old Age Security pension or the Allowance. In this
case, the pensioner can receive the Guaranteed Income Supplement
at the higher rate paid to those who are single. Moreover,
the maximum monthly supplement is reduced by $1 for every $4
of the couple's combined monthly income, excluding, as usual,
the pensioner's Old Age Security benefit. Also, the first reduction
of $1 is made only when the combined yearly income of the couple
reaches 12 times the basic monthly Old Age Security pension
plus $48.
Non-sponsored
Immigrants
Newcomers with less than 10 years of residence
in Canada who qualify for Old Age Security under a social security
agreement will have their Guaranteed Income Supplement/ Allowance
entitlement grow gradually over 10 years - 1/10th of the benefit
for each year of residence. This includes:
• persons who have not resided in Canada
for 10 years after the age of 18 and who are not receiving
benefits for the month of March 1996 or earlier;
• newcomers who did not reside in Canada as Canadian citizens or permanent
residents before March 7, 1996;
• persons who are already residing or had resided in Canada as Canadian citizens
or permanent residents but who do not qualify for benefits until February
2001 or later.
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