Question Period Note: Private Member Bill C-319 – An Act to amend the Old Age Security Act (amount of full pension)

What did Private Member Bill C-319 propose?

• In the previous session of Parliament, the Bloc Québécois put forward Private Member Bill C-319, which primarily proposed to increase the amount of the full monthly Old Age Security pension for seniors aged 65 to 74 by 10%.
• Implementing this Bill would have undermined the policy rationale for the targeted 10% increase to the OAS pension introduced in July 2022 for seniors aged 75 and over. These older seniors face greater financial vulnerability as they tend to have lower incomes and higher health-related expenses.
• Creating a single OAS pension rate for all pensioners, regardless of age, would mean that the OAS program would no longer reflect the differing needs and economic realities faced by these two age groups.

Private Member Bill C-319 was introduced by Ms. Andréanne Larouche (Bloc Québécois, Shefford) in the House of Commons on March 8, 2023. It was placed on the House of Commons Order of Precedence on March 16, 2023 .

The Bill proposed amendments to the Old Age Security Act (OAS Act) that would make two specific changes:

1) increase the amount of the full monthly OAS pension for seniors aged 65 to 74 by 10%, effective January 2023; and,

2) increase the amount of the full GIS Earnings Exemption from $5,000 to $6,500 and extend the partial earnings exemption from the next $10,000 of qualifying work income to the next $13,000 of qualifying work income, effective July 2023.

The Bill passed committee consideration at the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) and the committee report was presented to the House of Commons on March 19, 2024.

The Bill was at Report Stage in the House, but subsequently expired when the 44th Parliament was dissolved on March 23, 2025. It is anticipated that the Bloc Québécois could reintroduce the Bill in the current 45th Parliament.

10% increase to the OAS pension for seniors 65 to 74

In July 2022, the OAS pension was permanently increased by 10% for seniors aged 75 and over. This increase was designed to address the fact that as seniors get older, they tend to have lower incomes and often face higher health-related expenses because of the onset of illness or disability. This increased vulnerability is further compounded by a reduced ability to supplement their income with paid work, the risk of outliving personal savings and the risk of becoming a widow or widower.

This measure was put into place to help make life more affordable for Canadians as they age, and has benefitted over 3 million OAS pensioners aged 75 and over in 2023-2024.

GIS Earnings Exemption
Low-income OAS pensioners are eligible for additional assistance through the non-taxable GIS. Seniors with no income (apart from the OAS pension) receive the maximum GIS benefit. Thereafter, the GIS is generally reduced by $1 for every $2 of other income, to target those most in need.

The GIS Earnings Exemption is a provision under the OAS Act which allows GIS recipients who wish to remain active in the labour market to exempt a portion of their earnings from the calculation of their GIS benefit, helping them keep more of what they earn. Recipients of the Allowances, payable to low-income Canadians aged 60 to 64 who are the spouses or common-law partners of GIS recipients, or who are widows or widowers, can also benefit from the Earnings Exemption.

In order to further reduce barriers to work for low-income seniors, in July 2020, the Government of Canada enhanced the GIS Earnings Exemption in order to allow low-income seniors who work to keep more of their benefits. Since July 2020, a GIS recipient can fully exempt up to $5,000 of their annual employment and/or self-employment earnings, as well as a 50% exemption of their next $10,000 of earnings. This provides a total exemption of $10,000 of a person’s first $15,000 of employment and self-employment earnings.

Bill C-319’s proposed amendments to the GIS Earnings Exemption would increase the maximum exemption amounts from $10,000 to $13,000 for single seniors, and from $20,000 to $26,000 for senior couples where both members work.
Cost of Bill C-319

The Chief Actuary has estimated that, in total, Bill C-319’s amendments would have increased OAS program costs by $19.76 billion over the first six years, from fiscal year 2022-2023 to 2027-2028. These costs would increase significantly over time with aging demographics and the quarterly indexation of OAS program benefits.

“Canada’s old age security system--the entire system, not just the things covered in the act--has been extremely successful in helping seniors in reducing the poverty rate for seniors. Having said that, there are clearly some seniors who are in dire situations. […] we would be better served by a more targeted, focused policy that tried to help seniors in need, rather than also helping high-income seniors.”

­ Testimony from Dr. Arthur Sweetman, Professor, Economics, McMaster University, during the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities meeting of Thursday, February 8, 2024.

“[…] whenever people are in need, we need to target support to those people, instead of giving it to people who are not in that need. The number of seniors living in poverty across Canada is around 250,000. We have an obligation as a society to take care of our seniors.”

­ Testimony from Chandra Arya, M.P., Nepean, Ontario, during the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities meeting of Monday, February 12, 2024.