Bill C-319 proposes changes to the Old Age Security Act. It aims to increase the full monthly pension amount for those 65 and older. The bill also seeks to raise the amount of employment or self-employment income that can be earned before it affects the Guaranteed Income Supplement (GIS). The bill adjusts the calculation of benefits to provide a higher level of support for seniors. Specifically, the bill outlines that the amount of the full monthly pension that may be paid to any person for a month in the payment quarter commencing on January 1, 2023 is seven hundred and fifty-six dollars and thirty-two cents.
Currently, the Act reduces GIS benefits for those with higher incomes. This Bill seeks to amend this process by increasing the amount that can be earned before reductions to GIS occur. The Bill aims to replace paragraph (b.1) of the definition of income in section 2 of the Old Age Security Act. The new version notes that for the purpose of determining benefits payable in respect of any month after June 2023, there shall be deducted from a person’s combined amount an amount that is equal to the aggregate of (i) the lesser of $6,500 and the combined amount, and (ii) if the combined amount is greater than $6,500, the lesser of $6,500 and half of the amount by which the combined amount exceeds $6,500.
Inflation and Cost of Living
This bill addresses the rising cost of living for seniors by increasing the Old Age Security (OAS) pension amount. This would provide additional income to help seniors manage expenses. It also increases the amount of income seniors can earn before it affects their Guaranteed Income Supplement (GIS), which could help them keep more of their earnings.
Spending
The bill likely involves increased government spending on Old Age Security (OAS) and Guaranteed Income Supplement (GIS) benefits due to the proposed increase in the full pension amount and the higher income exemption for the GIS.