Old Age Security (OAS) provides a pension benefit.

Eligibility

• age 65⁺
• 10⁺ years of residence in Canada after reaching age 18
• ignores employment history
• available even if working (not affected by employment history)

Benefit

official payments

• taxable
• benefit is 1/40 of full monthly pension for each year you lived in Canada after your 18th birthday
• indexed to Consumer Price Index quarterly (adjusted in January, April, July, October)
• taxable benefit = min{40, calendar years of residency} / 40
• late applicants who meet the other eligibility requirements can receive retroactive payments for the month of application and up to 11 preceding months
• you can request that benefits be cancelled and reinstated later
  • no retroactive payments

• you can receive payments outside Canada indefinitely if you lived in Canada for 20⁺ years after reaching age 18
  • else paid for the month of departure and up to six additional months
    • may be reinstated if you return to live in Canada and meet the other conditions of eligibility
• can apply up to 6 months prior to eligibility with proof of age and legal residence status
• reapply annually

Clawback

• higher income pensioners repay some or all of their benefit
• clawback of 15% of net income above $63,511 (2007) → no benefit if net income ≥ $102,865 (2007)
  • each spouse considered separately → consider income splitting
• repayment amounts usually deducted from the payments before issued

v2

• monthly pension for all Canadians and legal residents age 65⁺ who apply and meet residency requirements
• administered by Human Resources and Skills Development Canada
• funded from general tax revenues
• benefits adjusted quarterly, indexed to CPI
• benefits are taxable
• application process
  • can apply up to six months before eligibility
  • provide proof of age and legal residence status

Benefits

• start in the month after the month you meet the requirements
  • can be retroactive for up to 12 months if you apply late
• can receive benefits outside Canada if you lived here for 20⁺ years after age 18
  • else for a maximum of six months, restarting in the month of your return
• you earn 1/40 of the maximum pension for each full year of residence (minimum of 10 years)
  • full pension after 40 years of residence after age 18
  • partial pension if 10⁺ consecutive years of residence after age 18

Clawback For High Income Earners

• clawback starts if your net income > $60,806 (2005)
• full clawback (no benefit) if your net income > $98,547 (2005)
• calculations ignore your spouse's income → use income splitting