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Overview
The Old Age Security pension is a monthly benefit available,
if applied for, to most Canadians 65 years of age or over. Old
Age Security residence requirements must also be met. An applicant's
employment history is not a factor in determining eligibility,
nor does the applicant need to be retired. Old Age Security pensioners
pay federal and provincial income tax. Higher income pensioners
also repay part or all of their benefit through the tax system.
Eligibility Conditions
To qualify
for an Old Age Security pension,
• a person must be 65 years of
age or over, and
• must be a Canadian citizen or a legal resident of Canada on
the day preceding the application's approval; or
• if no longer living in Canada, must have been a Canadian citizen or a legal
resident of Canada on the day preceding the day he or she stopped living
in Canada.
A minimum of 10 years of residence in Canada after reaching age 18 is required
to receive a pension in Canada.
Amount of Benefits
The amount of a person's pension is determined by how long he or she has
lived in Canada, according to the following rules:
A person who has lived in Canada, after reaching age 18, for
periods that total at least 40 years, may qualify for a full
Old Age Security pension;
A person who has not lived in Canada for 40 years after age 18 may still
qualify for a full pension if,
• on July 1, 1977, he or she was 25 years of age or over, and
• lived in Canada on July 1, 1977; or
• had lived in Canada before July 1, 1977, after reaching age 18; or
• possessed a valid immigration visa on July 1, 1977.
In such cases, a person must have lived in Canada for the
10 years immediately prior to approval of the Old Age Security
application. Absences during this
10-year period may be offset if, after reaching the age of 18, the applicant
lived in Canada before those 10 years, for a period of time that was
at least three times the length of absence. In this case,
however, the applicant must
also have lived in Canada for at least one year immediately prior to
the date of the application's approval. For example, an absence
of two years
between the ages of 60 and 62 could be offset by six years of residence
after age 18 and before reaching age 55.
Absences from Canada
Canadians
working outside Canada for Canadian employers, such as the armed
forces and banks, may have their time working abroad counted
as residence in Canada. To qualify, the person must have returned
to Canada within six months of ending employment or have turned
65 years old while still employed. Both proof of employment from
the employer as well as proof of physically returning to Canada,
if only for one day, must be provided. Under certain conditions,
this provision may also apply to spouses and dependents and Canadians
working abroad for international organizations.
Partial Pension
A person who cannot
meet the requirements for the full Old Age Security pension may
qualify for a partial pension. A partial pension is earned at
the rate of 1/40th of the full monthly pension for each full
year lived in Canada after his or her 18th birthday. Once a partial
pension has been approved, it may not be increased as a result
of added years of residence in Canada.
Late applicants of the Old Age Security
pension as well as the Guaranteed Income Supplement and Allowance
may receive retroactive
payments. Old Age Security, Guaranteed Income Supplement and
Allowance payments may be made for up to 11 months plus the month
in which the application is received, provided all
conditions of eligibility are met.
Old Age Security clients can request that their Old Age Security
benefits be cancelled. They can have them reinstated at a later
date. However, in such cases, no retroactive payments will be
permitted.
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