A Reference Guide - Old Age Security and Canada Pension Plan
Old Age Security Program
General Information
The Old Age Security program, which had its beginnings in 1927, is the cornerstone of Canada's retirement income system.
Administered by the Department of Human Resources and Social Development, the program is financed from general federal tax revenues. It pays monthly pension benefits to all Canadians 65 and over who meet the residence requirements, and some supplementary benefits to eligible low-income seniors 60 and over.
All benefits payable under the Old Age Security Act are adjusted, if necessary, in January, April, July, and October of each year to reflect increases in the cost of living as measured by the Consumer Price Index. Monthly payments are not reduced if the cost of living drops.
The Old Age Security program provides the following benefits:
- the OAS pension,
- the Guaranteed Income Supplement, and
- the Allowance (which includes the Allowance for the survivor).
Eligibility for OAS benefits is based on years of residence in Canada. Specific eligibility requirements are explained in the sections describing the individual benefits.
All OAS benefits must be applied for, and retroactive payments can be made for a maximum of 11 months. Payment of OAS benefits can be made retroactively for a longer period only if the applicant was considered unable to apply earlier because of a severe incapacity. A person may be considered to be "incapacitated" if he or she is incapable of forming or of expressing the intent to make such an application or request.
Reconsidering and appealing a decision: Applicants may request an explanation of a decision and, if they are not satisfied, a reconsideration of any decision that affects their eligibility or the amount of their benefit. This request must be made in writing within 90 days of receiving the notice of decision. If they are still not satisfied with the decision after reconsideration, they may then appeal to a Review Tribunal.
