June 2, 2010
Government Moves to End Old Age Security
Entitlements for Prisoners
Ottawa (June 2, 2010)— Ed Komarnicki,
Member of Parliament for Souris-Moose Mountain and Parliamentary
Secretary to the Minister of Human Resources and Skills Development
and to the Minister of Labour today highlighted a new government
bill tabled on June 1, 2010, that will amend the Old Age Security
Act and suspend payment of Old Age Security (OAS) benefits to
prisoners while in prison.
“This piece of legislation is long overdue,” said Komarnicki. “Now is not too soon to address a situation that most taxpayers find unacceptable.”
The legislation suspends OAS and Guaranteed Income Supplement (GIS) payments during incarceration for those sentenced to two years or more and adds the same provisions for those sentenced for 90 days or more upon provincial-territorial agreements being signed.
OAS and GIS are designed to help seniors meet their immediate, basic needs and maintain a minimum standard of living in retirement. While in prison, a prisoner’s basic needs, such as food and shelter, are already met and paid for by public funds. Therefore, there is no reason for Canadian taxpayers to also fund income support for prisoners through the OAS program. At the same time, the legislation ensures that a low-income spouse or common-law partner of an incarcerated inmate will not lose their individual entitlement to OAS, GIS and Allowances.
“This legislation not only seems fair but reflects public opinion and as such I expect this bill will be well received and supported by a majority of opposition members,” said Komarnicki. “It is also an indication that our government can react quickly where and when necessary. When we say we will get something done, we do it.”
Backgrounder
OLD AGE SECURITY
The Old Age Security (OAS) program is the cornerstone of Canada’s retirement income system.
In order to be eligible to receive OAS benefits, applicants must meet specific residence requirements. To receive OAS benefits, an individual must have resided in Canada for a minimum of 10 years, after age 18. A person applying for OAS benefits who has fewer than 10 years’ residence in Canada may nevertheless qualify for a partial benefit if he or she has accumulated pension credits from one of the countries with which Canada has an International Social Security Agreement. With 40 years of residence in Canada, a full pension can be received.
The OAS program offers three types of benefits:
1. The OAS basic pension – This pension is paid to individuals aged 65 or older who meet the residency requirements. In 2008-2009, 4.5 million seniors received $25 billion in OAS pension benefits.
2. The Guaranteed Income Supplement (GIS) – The GIS is paid to individuals receiving the OAS basic pension with little or no other income. In 2008-2009, 1.6 million seniors received $7.5 billion in GIS benefits.
3. The Allowances – The Allowance is paid to individuals aged 60 to 64 whose spouse or common-law partner receives the GIS. The Allowance for the Survivor is paid to individuals between the ages of 60 and 64, who have little or no income, and whose spouse or common-law partner has died, and who have not remarried or entered into a common-law relationship. In 2008-2009, 93,000 near-seniors received $532 million in Allowances.
OAS benefits are adjusted quarterly in January, April, July and October to reflect changes in the cost of living, as measured by the Consumer Price Index (CPI). The Old Age Security Act contains a guarantee that ensures that OAS benefits are not reduced, even when there is a decrease in the CPI. As such, if the CPI goes down, OAS benefits will remain the same.
Individuals must apply for OAS benefits. They
do not start automatically.
