Question Period Note: Guaranteed Income Supplement (GIS) – Yearly Renewal

What is Service Canada doing to ensure that 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 GIS for low-income seniors.
• To ensure the timely renewal of their GIS and other benefits, seniors should file an individual Income Tax and Benefit return with the Canada Revenue Agency by May 2.
• Service Canada focuses on processing GIS renewals for all clients for whom income information had been received on time. In 2021, 96% of GIS benefits were renewed automatically.
• Each July, Service Canada mails letters to GIS recipients for whom no income information was received. Most clients take immediate action.
• Service Canada continues its efforts to strengthen the annual GIS reassessment process and improve communications with clients to minimize any suspensions.

The Old Age Security (OAS) pension is a monthly payment of a maximum of $642.25 (January to March 2022) for seniors aged 65 and older.

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 $959.26 per month for a single, widowed, or divorced OAS pensioner and up to $577.43 per month for each member of a couple (January to March 2022).

Annual Reassessment of the GIS

Once individuals are found eligible and start receiving the GIS, the amount a beneficiary is entitled to receive is reviewed every year effective in July and is based on the individual’s net income in the previous calendar year, or the combined net income in the case of a couple. Therefore, from year to year, GIS payments can increase, decrease or even cease according to reported changes in annual net income.

In order for a client’s entitlement for the GIS to be renewed each July, they should file an individual Income Tax and Benefit return with the Canada Revenue Agency by May 2. Alternatively, individuals can provide their income information directly to Service Canada. This can be done by phone, mail or in-person.

Using income information from an individual’s federal Income Tax and Benefit Return or the income information received directly from the individual, where applicable, Service Canada reviews the individual’s entitlement for the GIS and if the individual is still entitled, their benefits are automatically renewed.

In response to the pandemic, in 2020 the Government maintain the GIS benefit for up to six months or until the income information was received.

In 2021, 96% of clients were automatically reassessed for the GIS without an interruption to their benefits. In the remaining cases, the necessary income information of the GIS recipient, or that of their spouse, was not available to the Department prior to the start of the July payment period.

Each July, Service Canada mails letters to GIS recipients for whom no income information was received. The letter indicates that their ongoing entitlement cannot be determined without their income information, and includes a Statement of Income form, allowing seniors to provide income information without having to file a tax return. Seniors are also advised that they can also provide their income information to Service Canada over the phone to prevent or limit any interruption in their benefit payments. Most clients take immediate actions and are not suspended.

By the end of September 2021, over 98% of GIS recipients have been reassessed. For the remaining clients, most of them will have provided the missing income information by May of the following year and are back into pay with no loss of benefits, given the 11-month retroactive provisions of the legislation.

Proactive communications

Service Canada continues to provide proactive communications and outreach activites to offer information and support on GIS and to ensure that low-income seniors receive the benefits to which they are entitled.

Key steps taken for the July 2022 GIS Reassesmnet include
• Inclusion of an insert with the tax slips to remind all GIS recipients of the importance to file their taxes on time;
• A proactive mail out to approximately 10,000 GIS clients likely not to file taxes, advising them to provide income information to avoid suspension of their benefits.

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