Question Period Note: GUARANTEED INCOME SUPPLEMENT (GIS)

What is Service Canada doing to ensure that eligible seniors continue receiving the Guaranteed Income Supplement to which they are entitled?

• Service Canada is committed to supporting seniors and ensuring they receive the benefits to which they are entitled, including the Guaranteed Income Supplement (GIS) for low-income seniors.
• Service Canada has implemented processes to make GIS renewal easier for clients. For example, 96% of seniors who filed their taxes with the CRA and were receiving GIS benefits had their GIS entitlement reviewed and automatically renewed this past July.
• The department has prioritized contacting and engaging seniors who were not automatically renewed due to missing income information and to encourage them to file their taxes.
• Service Canada continues its efforts to strengthen the annual GIS reassessment process. Clients can contact Service Canada at any time if they have questions about their benefits.

The Guaranteed Income Supplement (GIS) provides financial assistance to seniors who have little or no income other than the OAS pension. Currently, the program provides up to $1072.93 per month for a single, widowed, or divorced OAS pensioner (July to September 2024).

A person with a spouse/common-law partner could receive up to $645.84 per month of GIS if the spouse/common-law partner receives the full OAS pension or Allowance, and up to $1072.93 if the spouse/common-law partner does not receive an OAS pension (July to September 2024).

With no other income, seniors receive the maximum GIS benefit. However, for every $2 of other income, the maximum benefit is reduced by $1. Calculating the GIS based on all sources of income allows the benefits to be targeted to those most in need.

In order for the GIS benefit to be renewed each July, seniors should file an individual Income Tax and Benefit return with the Canada Revenue Agency. Alternatively, individuals can provide their income information directly to Service Canada by mail or in-person.

Key steps taken for the July 2024 GIS reassessment include:
• Inclusion of an insert with tax slips to remind of the importance to file taxes on time;
• A proactive mail out to GIS clients;
• Collaboration between Service Canada and the Canada Revenue Agency to ensure seniors have their income tax return processed in a timely manner;
• Service Canada prioritizes the income information received directly from seniors to reassess their entitlement to GIS benefits;
• Outreach activities for Members of Parliament and staff across Canada to provide information on the GIS.

Seniors informed that their benefits were suspended are also:
• Informed that they can call Service Canada to provide information to reinstate their benefit in a timely manner.
• Sent a form to complete reinstate benefits.

As of September 6, 2024, over 98% of GIS recipients had been reassessed. Service Canada continues to prioritize the reassessment as income information becomes available. For the remaining clients, most of them will have provided the missing income information by May 2025 and will be back into pay with no loss of benefits, given the 11-month retroactive provisions of the legislation.

If Pressed (Reduction in payments)
• The GIS is an income tested benefit.

• An individual’s net income in 2023 is used to determine the amount of GIS, Allowance (ALW), and Allowance for the Survivor (ALWS) benefits effective July 2024.

• Seniors with no other income receive the maximum GIS benefit (up to $1072.93).

• Every January, the CPP and QPP pension amounts are reviewed and adjusted according to the Consumer Price Index (CPI).

• In January 2023, the CPP and QPP pension amounts were increased by 6.5% (higher than in previous years), causing a reduction to their GIS/ALW/ALWS benefits in July 2024 if they were in receipt of CPP or QPP benefits in 2023.

• For example, a client whose annual RRQ (or CPP) pension increased from $3,267 annually in 2022 to $3,757 annually in 2023 (a difference of $490) had a GIS decrease of $22.54 per month (or $270 annually) starting in July 2024.