Old Age Security and the Canada Pension Plan

February 2010
Information for beneficiaries residing in Canada

February 2010 - Information for beneficiaries residing in Canada (PDF version, 375 kb)

Catalogue number ISPB-121-02-10

• What You Should Know
• Speed up transactions online! Create your own My Service Canada Account
• Have you applied for all your Old Age Security benefits?
• Are you getting the most you can from the Canada Pension Plan?
• International benefits
• You can have your benefits file reviewed free of charge
• Tax savings for seniors and pensioners
• Do you need help completing your annual income tax return?
• You can arrange for monthly income tax deductions
• Be sure to tell Service Canada if:
• How to contact Service Canada

What You Should Know

This information sheet is being sent to you along with your T4A(OAS) tax information slip and/or your T4A(P) tax information slip. These tax information slips are for Old Age Security and Canada Pension Plan beneficiaries residing in Canada. You must include these slips when filing your annual income tax return.

Speed up transactions online!
Create your own My Service Canada Account

My Service Canada Account is a fast and convenient way to securely:

• view and print your Old Age Security and Canada Pension Plan tax information slips sooner;
• view your most recent payment amounts; and
• view and change your address or your direct deposit information.

To access Service Canada’s online service, you will need to obtain a personal access code, which may take 5 to 10 business days to receive by mail. You can then register for a Government of Canada epass user ID and password. For more information on the registration process and how to use this service, visit www.servicecanada.gc.ca and select “Access My Service Canada Account.”

Have you applied for all your Old Age Security benefits?

The Old Age Security (OAS) program provides income security to Canadian seniors. Benefits include the basic OAS pension, the Guaranteed Income Supplement (GIS), the Allowance, and the Allowance for the Survivor.

• If you are 65 or older, have lived in Canada for at least 10 years after turning 18, and are a Canadian citizen or a legal resident of Canada, you should apply for the Old Age Security (OAS) pension.
• If you are eligible for the OAS pension and have little or no other income, you should also apply for the Guaranteed Income Supplement (GIS). Because this supplement is based on marital status and income, you may qualify now, even if you did not qualify in a previous year.
• If you are 60 to 64 and your spouse or common-law partner receives the OAS pension and is eligible to receive the GIS, you should apply for a benefit called the Allowance.
• If you are 60 to 64, have little or no income, and your spouse or common-law partner has died, you should apply for a benefit called the Allowance for the Survivor.
• If you receive GIS, Allowance, or Allowance for the Survivor benefits, you can renew these benefits by simply filing your tax return by April 30 each year. If you do not file your return on time, or if Service Canada needs further information, you will receive a renewal form in the mail.
• If you are eligible for GIS, Allowance, or Allowance for the Survivor benefits and your pension or employment income drops, it may be possible to have your benefits adjusted. Please contact Service Canada.
• If you receive GIS, Allowance, or Allowance for the Survivor benefits, you can now earn more employment income without having your benefits reduced. The current maximum exemption amount for employment income is $3,500.

Are you getting the most you can from the Canada Pension Plan?

The Canada Pension Plan (CPP) pays retirement, survivor, death, disability, and children’s benefits to those who qualify.

• The CPP offers you flexibility with respect to the age you retire. You may apply to start receiving your pension any time between ages 60 and 70. Currently, the CPP permanently reduces the pension amount by 0.5 percent per month if you decide to take your pension before reaching age 65. If you decide to take your pension between ages 65 and 70, the CPP permanently increases the pension amount by 0.5 percent per month. At present, the maximum adjustment that may be made to your pension, up or down, is 30 percent. This adjustment is calculated from the time you start receiving your pension. Generally, this means that if you are willing and able to continue working and contributing to the CPP, you will receive a larger pension. If you choose to begin receiving your pension before age 65, you must meet certain earnings requirements.
• If you are a surviving spouse or common-law partner of a CPP contributor, you may be eligible for a monthly survivor benefit. Dependent children up to the age of 25 may also be eligible (those between 18 and 25 must be attending school full-time). The CPP also offers a lump-sum death benefit to the estate of qualifying contributors to help with funeral expenses.
• If you are a CPP contributor under the age of 65 and cannot work at any job because of a severe and prolonged physical and/or mental disability, you may be eligible for basic earnings replacement in the form of monthly benefits provided by the Canada Pension Plan Disability program.
• If you have children born after 1958, the child-rearing provision may help you receive a higher CPP benefit amount.
• If you divorce or separate, CPP contributions made by both you and your spouse or common-law partner during your marriage or common-law relationship can be divided equally between you for the period of time you lived together. This division of contributions is called “credit splitting.”
• If both you and your spouse or common-law partner are age 60 or older, you can apply to share your CPP retirement pensions. Pension sharing can result in income tax savings.

International benefits

If you lived or worked in a country that has a social security agreement with Canada, you or your family may be eligible for old age, disability, or survivor benefits from that country, from Canada, or from both. From Canada or the United States, contact Service Canada at 1‑800‑454‑8731 or visit www.servicecanada.gc.ca. If you have a hearing or speech impairment and use a teletypewriter (TTY), please contact 1‑800‑255‑4786.

From outside Canada and the United States:

CALL

• 613‑957‑1954 (collect calls accepted)

BY MAIL

• International Operations
  Service Canada
  Ottawa ON  K1A 0L4
  CANADA 

You can have your benefits file reviewed free of charge

If you have questions about whether you are eligible for any of the Old Age Security and Canada Pension Plan benefits mentioned here, call Service Canada at 1‑800‑277‑9914 and we will review your file free of charge. If you have a hearing or speech impairment and use a teletypewriter (TTY), call 1‑800‑255‑4786.

Tax savings for seniors and pensioners

• For the 2009 tax year, the Government of Canada increased the maximum Age Amount by $1,000 from $5,408 to $6,408. The Age Amount is a non‑refundable tax credit for individuals who are 65 and older. You can claim it on your 2009 personal income tax and benefit return. You can use this non‑refundable tax credit to reduce your total personal income tax payable.
• You can take advantage of the Tax‑Free Savings Account (TFSA). The TFSA is a registered general‑purpose savings vehicle that allows Canadians to earn tax‑free investment income. Any income you earn within a TFSA and any withdrawals you make from it do not affect your eligibility for federal income‑tested benefits and tax credits.
• You and your spouse or common‑law partner may be able to split your eligible pension income to reduce your combined taxes.

For more information on tax‑related measures, call the Canada Revenue
Agency at 1‑800‑959‑8281 or visit www.cra.gc.ca/seniors. If you have a hearing or speech impairment and use a teletypewriter (TTY), call 1‑800‑665‑0354.

Do you need help completing your annual income tax return?

The Community Volunteer Income Tax Program can help most low‑income Canadians with simple tax situations. To get help, call the Canada Revenue Agency at 1‑800‑959‑8281 or visit www.cra.gc.ca/volunteer. To file your tax return by phone, all you need is your TELEFILE access code. To TELEFILE your return, call 1‑800‑959‑1110. If you do not have an access code, call 1‑800‑714‑7257 to get one. You can file online using NETFILE at www.netfile.gc.ca.

You can arrange for monthly income tax deductions

If you live in Canada, you can call Service Canada at 1‑800‑277‑9914 to have income tax deducted from your monthly Old Age Security and Canada Pension Plan benefits. This way, you will have your deductions spread over your monthly pension payments instead of paying a lump sum at tax time. If you have a hearing or speech impairment and use a teletypewriter (TTY), call 1‑800‑255‑4786 to make arrangements.

Be sure to tell Service Canada if:

• you move or your banking information changes;
• someone in your family who receives benefits is no longer eligible or dies;
• your marital status changes while you are receiving benefits;
• you leave Canada for more than six months while receiving benefits; or
• a child under 18 for whom you receive a Canada Pension Plan benefit enters or leaves your custody (by birth, adoption, marriage, common‑law relationship, death, or other circumstances).

How to contact Service Canada

CLICK

• servicecanada.gc.ca

CALL

• 1‑800‑277‑9914 (toll-free in Canada and the United States)
  If you have a hearing or speech impairment and use a  teletypewriter (TTY), call 1‑800‑255‑4786.

VISIT

• a Service Canada Centre

BY MAIL

• Service Canada
  PO Box 8522
  Ottawa ON  K1G 3H9
  CANADA

We will need your Social Insurance Number to access your information.

The Government of Canada’s awareness campaign, called
“Elder Abuse – It’s time to face the reality,” encourages Canadians to recognize the signs and symptoms of elder abuse and provides important information on available help and support. Visit www.seniors.gc.ca or call 1 800 O‑Canada (1‑800‑622‑6232) for a brochure. If you have a hearing or speech impairment and use a teletypewriter (TTY), call 1‑800‑926‑9105.

For more information of interest to seniors, please visit www.seniors.gc.ca.