previously called the “Spouse’s Allowance”
The tax-free Allowance is paid monthly to help with the difficult circumstances faced by many
- surviving spouses
- couples living on the pension of only one spouse
A monthly benefit is payable if
- you are a resident of Canada
- aged 60-64
- your spouse receives OAS and GIS
- little other income
Eligibility
You are eligible if all of the following apply
- you are the spouse or survivor of an OAS Pension recipient
- you are age 60-64
- you are resident in Canada
- can only receive payments outside Canada for the month of departure and up to six additional months
- same for the Guaranteed Income Supplement
- in contrast, OAS Pension benefits continue indefinitely if you lived in Canada for 20+ years after reaching age 18
- can only receive payments outside Canada for the month of departure and up to six additional months
- you have lived in Canada for a minimum of 10 years since 18
- your income (combined with your spouse, if any) is below certain limits
Must reapply annually.
Benefit
The maximum benefit equals
- if spouse: the combined full OAS Pension + Guaranteed Income Supplement at the married rate
- if single or survivor: higher
Monthly Benefit | Average (Jan 2007) | Maximum (Jan 2007) | Maximum Annual Net Income |
---|---|---|---|
All recipients | $357.87 | $901.97 | $27,600 |
Allowance for the survivor | $568.17 | $999.81 | $20,064 |
Benefit Termination
The Allowance stops when you
- become eligible for an OAS Pension at age 65
- leave Canada for more than 6 months, or
- die
For a couple, the Allowance stops
- if your spouse becomes ineligible for the Guaranteed Income Supplement
- upon separation or divorce
- if the survivor remarries or lives in a common-law partnership for more than 12 months
Clawback
- clawback based on couple’s “base income” in the previous tax year
taken from here. Clarify later.
The maximum monthly Allowance is reduced by $3 for every $4 of the beneficiary's monthly income for a widowed spouse or common-law partner or the couple's combined monthly income. This happens until the Old Age Security-equivalent is reduced to zero. Then, for a couple, both the Guaranteed Income Supplement-equivalent portion of the Allowance and the pensioner's Guaranteed Income Supplement are reduced by $1 for every additional $4 of the couple's combined monthly income. For a survivor, the Guaranteed Income Supplement-equivalent portion is reduced by $1 for every additional $2 of monthly income.