A Reference Guide - Old Age Security and Canada Pension Plan

Old Age Security Program

The Benefits

Guaranteed Income Supplement

The Guaranteed Income Supplement (GIS) is a monthly benefit paid to residents of Canada who are eligible to receive an OAS pension (full or partial) and have little or no other income. GIS payments can begin in the same month as OAS pension payments.

The GIS is not taxable. It is not automatic. It must be applied for.

Continuing eligibility for. Under recent changes made to the Old Age Security Act, once a new applicant has submitted their application for the GIS or the Allowance or Allowance for the survivor, they should not have to reapply for the benefit as long as they file an income tax return each year.

If a person is currently receiving an income-tested benefit under Old Age Security (e.g. the Guaranteed Income Supplement, the Allowance, Allowance for the survivor), and if they file an income tax return with the Canada Revenue Agency for the current tax year, (and every year thereafter) they will not normally have to reapply for the benefit. However, if a person is currently receiving an income-tested benefit under the Old Age Security Act recipient's annual income and they do not file an income tax return for the current tax year, then they will have to reapply for their benefit.

If a person receives any forms for the Guaranteed Income Supplement or the Allowance from Service Canada at any time, they are asked to complete them and return them to Service Canada so that their eligibility for the benefit is not interrupted.

The GIS is an income-tested benefit. It depends on the recipient's annual income for the previous calendar year, and on their marital status.

If the recipient is married or living in a common-law relationship, the combined income of both partners is used. The benefit is recalculated each July to reflect the annual income from the previous calendar year. Benefits are also adjusted if there is a change in the recipient's marital status.

If a recipient's income in one year is too high, they may not receive the GIS the next year. They may be eligible for the GIS again in the following year.

The GIS is not payable outside Canada for more than six months following the month of departure, regardless of how long the person resided in Canada.

To qualify: To receive the GIS benefit, a person must be eligible for an OAS pension. The annual income of the applicant or, in the case of a couple, the combined income of the applicant and his or her spouse/common-law partner cannot exceed certain limits.

Sponsored immigrants who receive OAS benefits as a result of a social security agreement are not eligible for the GIS until their period of sponsorship ends, or until they have lived in Canada for 10 years, whichever comes first.

Exception: In the case of a breakdown of sponsorship, sponsored immigrants who were admitted to Canada after March 6, 1996, may be entitled to a partial GIS benefit.

Retroactive payments: As is the case for the OAS, people who apply for the GIS after the age of 65 can, if eligible, receive a retroactive payment covering the period from their 65^th birthday or 11 months, whichever is shorter. The period of retroactivity is calculated from the month the application is received. (They would at the same time receive payment for the month in which the application was received.)

Amount of benefit: The amount to which a person is entitled depends on his or her marital status and income.

Income is defined for the GIS in the same way income is defined for federal income tax purposes, with a few exceptions, the most important one being that for GIS purposes, the OAS is not considered to be income.

If the GIS applicant is married or living in a common-law relationship, the combined income of the pensioner and his or her spouse/common-law partner must be taken into account.

Generally, income earned in the previous calendar year is used to calculate the amount of benefits paid in a payment year (July to June of the following year). However, if a pensioner or his or her spouse/common-law partner has recently retired or has experienced a loss of pension income, an estimate of employment and pension income for the current calendar year may be used to replace the employment and pension income from the previous calendar year when calculating benefits.

Basic GIS rates

The GIS has different rates of payment depending on the marital status of the applicant:

• The single rate applies to single, widowed, divorced or separated persons.
  
  
• The married/common-law rate applies both to legally married couples and to couples living in common-law relationships if both partners are OAS pensioners.
  
  
• A second rate applies to OAS pensioners whose spouse or common-law partner receives neither the OAS pension nor the Allowance. This higher rate compensates for two people living on one pension.
  
  
• A third rate applies if one is an OAS/GIS pensioner and the other receives the Allowance.
  
  

Non-sponsored immigrants: Non-sponsored immigrants with fewer than 10 years of residence in Canada and who qualify for OAS benefits under a social security agreement may qualify for a pro-rated GIS/Allowance benefit. Their entitlement will grow gradually over 10 years—one tenth of the benefit for each year of residence.

Pages:  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Publications