Question Period Note: INCREASING THE GUARANTEED INCOME SUPPLEMENT BY $500 ANNUALLY FOR SINGLE SENIORS AND $750 ANNUALLY FOR SENIOR COUPLES

Why did the Government not increase to the Guaranteed Income Supplement in Budget 2022?

• All seniors deserve a secure and dignified retirement. This Government has worked tirelessly to make this a reality, from restoring the age of eligibility for Old Age Security benefits to 65 years from 67 years, to increasing the Guaranteed Income Supplement for single seniors by up to $947 annually, and enhancing the GIS Earnings Exemption.

• Our Government has also provided seniors with additional financial support through one-time payments, for extra costs incurred during the COVID-19 pandemic.

• Budget 2022 provides significant support to seniors by expanding the New Horizons for Seniors Program, and creating an expert panel to explore a new Aging at Home Benefit.

The Old Age Security (OAS) program is the first pillar of Canada’s retirement income system, and plays a significant role in providing income security to Canadians in their senior years. The benefits under the OAS program include the basic OAS pension, which is paid to all persons aged 65 or over who meet the residence requirements, the Guaranteed Income Supplement (GIS) for low-income seniors, and the Allowances for low-income Canadians aged 60 to 64 who are the spouses or common-law partners of GIS recipients, or who are widows or widowers.
To date, the Government has undertaken several measures to improve the financial security of low-income seniors. Since 2016, the Government has:
o increased the GIS top-up for the lowest income single seniors by up to $947 annually, helping close to 900,000 seniors who rely almost exclusively on the OAS pension and the GIS;
o restored the age of eligibility for the OAS pension and the GIS to 65 from 67, preventing about 100,000 future seniors from falling into poverty;
o increased the GIS Earnings Exemption from $3,500 to $5,000, extended the exemption to self employment income, and introduced an additional 50% exemption on employment and self employment income between $5,000 and $15,000, starting in July 2020. This measure enables working GIS recipients to earn up to $15,000 in employment and self employment income before the GIS benefit reduction applies to their full income;
o introduced an increase to the OAS pension for seniors aged 75 and over. This measure is being implemented in two steps: a one-time payment of $500, which was issued the week of August 16, 2021, to OAS pensioners who will be 75 or over as of June 30, 2022; and a permanent 10% increase to the OAS pension for this group of seniors, beginning in July 2022.
The 2021 Liberal Party Platform committed to ‘Increase the GIS by $500 for single seniors and $750 for couples, starting at age 65.’ This increase would require legislative changes to the Old Age Security Act. Work is currently underway to assess this commitment.

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