Old Age Security Act

The Old Age Security (OAS) Act provides a non-contributory, universal pension to Canadians aged 65 and older who meet residence requirements. Unlike the CPP, OAS is funded from general government revenues rather than contributions. The Act provides three main benefits: the OAS pension (for seniors with at least 10 years of residence in Canada after age 18), the Guaranteed Income Supplement (GIS, income-tested supplement for low-income seniors), and the Allowance (for low-income survivors and couples aged 60-64). The OAS pension is indexed quarterly to inflation and is subject to a clawback (recovery tax) for higher-income seniors. In 2022, the Act was amended to provide a 10% increase in OAS for seniors aged 75 and older.

Legal area: Social welfare law provides the statutory framework for income support, pensions, and social security benefits.

Year enacted: 1985

Full text: https://laws-lois.justice.gc.ca/eng/acts/O-9/

Key Provisions

• Section 3: OAS pension eligibility (65+, 10 years residence in Canada)
• Section 4: Calculation of OAS pension (40 year residence for full pension)
• Section 12: Guaranteed Income Supplement (GIS, income-tested)
• Section 19: Allowance for low-income seniors aged 60-64
• Section 19.1: Allowance for survivors (widows/widowers aged 60-64)
• Section 33: Recovery tax (clawback for seniors with net income above threshold)

Significance

OAS is a fundamental component of Canada’s retirement income security system, reaching over 6.5 million seniors. The GIS is one of Canada’s most effective anti-poverty programs, substantially reducing poverty among senior women. The 2022 permanent 10% OAS increase for seniors 75+ addressed the financial challenges of older seniors. The Act’s residence-based eligibility ensures that immigrants who have spent most of their lives in Canada receive proportionate benefits.