Old Age Security Act (R.S.C., 1985, c. O-9)

Marginal note:Additional amount — paragraph 12(1)(a)

• 12.1 (1) The amount that may be added to the amount of the supplement that may be paid under section 12 to a pensioner referred to in paragraph 12(1)(a) for any month in a payment quarter beginning after June 30, 2011 is the amount determined by the formula

  A × B – C/4

  where

  A

  is $50;

  B

  is the pensioner’s special qualifying factor for the month; and

  C

  is

  • (a) in the case of a pensioner who has no spouse or common-law partner, 1/12 of the pensioner’s income for the base calendar year in excess of $2,000 rounded, if it is not a multiple of four dollars, to the next lower multiple of four dollars, and

  • (b) in the case of a pensioner who, on the day immediately before the current payment period, had a spouse or common-law partner to whom no benefit may be paid for any month in the current payment period, 1/24 of the aggregate of the income of the pensioner and his or her spouse or common-law partner for the base calendar year in excess of $4,000 rounded, if it is not a multiple of four dollars, to the next lower multiple of four dollars.

• Marginal note:Additional amount — paragraph 12(1)(b)

  (2) The amount that may be added to the amount of the supplement that may be paid under section 12 to a pensioner referred to in paragraph 12(1)(b) for any month in a payment quarter beginning after June 30, 2011 is the amount determined by the formula

  A × B – C/4

  where

  A

  is

  • (a) in the case of a pensioner referred to in subparagraph 12(1)(b)(i), $50, and

  • (b) in the case of a pensioner referred to in subparagraph 12(1)(b)(ii), $35;

  B

  is the pensioner’s special qualifying factor for the month; and

  C

  is 1/24 of the aggregate of the income of the pensioner and his or her spouse or common-law partner for the base calendar year in excess of $4,000 rounded, if it is not a multiple of four dollars, to the next lower multiple of four dollars.

• Marginal note:Increase on July 1, 2016

  (2.1) For any month in the payment quarter beginning on July 1, 2016,

  • (a) the amount determined for A in subsection (1) is the amount that would otherwise have been determined for A in that subsection for any month in that payment quarter plus $78.92; and

  • (b) the amount determined for A in subsection (2) in the case set out in paragraph (a) of A in that subsection is the amount that would otherwise have been determined in that case for A in that subsection for any month in that payment quarter plus $78.92.

• Marginal note:Indexation

  (3) Subject to subsection (2.1), for the purpose of calculating the amount payable under subsection (1) or (2) for any month in a payment quarter beginning after September 30, 2011, the amount to be determined for A in that subsection is the amount obtained by multiplying

  • (a) the amount determined for A for any month in the three-month period immediately before that payment quarter

  by

  • (b) the ratio that the Consumer Price Index for the first adjustment quarter that relates to that payment quarter bears to the Consumer Price Index for the second adjustment quarter that relates to that payment quarter.

• Marginal note:No decrease

  (4) Despite subsection (3), the amount determined for A for any month in a payment quarter shall not be less than the amount determined for A for any month in the three-month period immediately before that payment quarter.

• Marginal note:Effect of reduction in Consumer Price Index

  (5) If, in relation to any payment quarter, the Consumer Price Index for the first adjustment quarter is lower than the Consumer Price Index for the second adjustment quarter,

  • (a) no adjustment to the amount determined for A shall be made under subsection (3) in respect of that payment quarter; and

  • (b) no adjustment to the amount determined for A shall be made under subsection (3) in respect of any subsequent payment quarter until, in relation to a subsequent payment quarter, the Consumer Price Index for the first adjustment quarter that relates to that subsequent payment quarter is higher than the Consumer Price Index for the second adjustment quarter that relates to the payment quarter referred to in paragraph (a), in which case the second adjustment quarter that relates to the payment quarter referred to in that paragraph is deemed to be the second adjustment quarter that relates to that subsequent payment quarter.

Calculation of Income

Marginal note:Calculation of income

13 For the purposes of determining the amount of supplement that may be paid to a pensioner for a month before July 1, 1999, the income for a calendar year of a person or an applicant is the income of that person or applicant for that year computed in accordance with the Income Tax Act, except that

• (a) there shall be deducted from the person’s or applicant’s income from office or employment for that year

  • (i) a single amount in respect of all offices and employments of that person or applicant equal to the lesser of five hundred dollars and one fifth of the person’s or applicant’s income from office or employment for that year,

  • (ii) the amount of employee’s premiums paid by the person or applicant during the year under the Employment Insurance Act, and

  • (iii) the amount of employee’s contributions made by the person or applicant during the year under the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act;

• (b) there shall be deducted from the person’s or applicant’s self-employed earnings for that year

  • (i) the amount of contributions made in respect of those self-employed earnings by the person or applicant during the year under the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act, and

  • (ii) the amount of premium paid by the person or applicant during the year under Part VII.1 of the Employment Insurance Act; and

• (c) there shall be deducted from the person’s or applicant’s income for that year, to the extent that those amounts have been included in computing that income,

  • (i) the amount of any benefit under this Act and the amount of any similar payment under a law of a provincial legislature,

  • (ii) the amount of any allowance under the Family Allowances Act and the amount of any similar payment under a law of a provincial legislature,

  • (iii) the amount of any death benefit under the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act,

  • (iv) the amount of any grant under a program that is a prescribed program of the Government of Canada relating to home insulation or energy conversion for the purposes of paragraphs 12(1)(u) and 56(1)(s) of the Income Tax Act, and

  • (v) the amount of any social assistance payment made on the basis of a means, a needs or an income test by a registered charity as defined in subsection 248(1) of the Income Tax Act or under a program provided for by an Act of Parliament or a provincial legislature that is neither a program prescribed under the Income Tax Act nor a program under which the amounts referred to in subparagraph (i) are paid.

Statement or Estimate of Income

Marginal note:Statement of income to be made

• 14 (1) Every person by whom an application for a supplement in respect of a current payment period is made shall, in the application, make a statement of the person’s income for the base calendar year.

• Marginal note:Waiver — statement of income

  (1.01) The Minister may waive the requirement to make a statement of income under subsection (1) if that information has been made available to the Minister under this Act and, in that case, the statement is deemed to have been made for the purposes of this Part.

• Marginal note:Minister may estimate income

  (1.1) If the requirement for an application for payment of a supplement for any month has been waived under subsection 11(3.1) or (4), the Minister may, on the basis of the information available to him or her,

  • (a) estimate the applicant’s income for the base calendar year; and

  • (b) in the case of an applicant who is a person described in subsection 15(2), estimate the income of the applicant’s spouse or common-law partner for the base calendar year.

• Marginal note:Statement of income where income estimated

  (1.2) Where a person’s income for a base calendar year has been estimated under subsection (1.1), the Minister may require that the person make a statement to the Minister of their income for any month in that year.

• Marginal note:Additional statement if retirement in current payment period

  (2) If in a current payment period a person who is an applicant, or is an applicant’s spouse or common-law partner who has filed a statement as described in paragraph 15(2)(a), ceases to hold an office or employment or ceases to carry on a business, that person may, not later than the end of the second payment period after the current payment period, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant’s spouse or common-law partner, file a statement of the person’s estimated income for the calendar year in which the person ceased to hold that office or employment or ceased to carry on that business, which income shall be calculated as the total of

  • (a) any pension income received by the person in that part of that calendar year that is after the month in which the person ceases to hold that office or employment or to carry on that business, divided by the number of months in that part of that calendar year and multiplied by 12,

  • (b) the income from any office or employment or any business for that calendar year other than income from the office, employment or business that has ceased, and

  • (c) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income.

• Marginal note:Additional statement if retirement in the last month of the calendar year that is in the current payment period

  (3) Despite subsection (2), if in the last month of a calendar year that ends in the current payment period a person who is an applicant, or is an applicant’s spouse or common-law partner who has filed a statement as described in paragraph 15(2)(a), ceases to hold an office or employment or ceases to carry on a business, the person may, not later than the end of the second payment period after the current payment period, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant’s spouse or common-law partner, file a statement of the person’s estimated income for the calendar year that is immediately after the month in which the person ceased to hold that office or employment or ceased to carry on that business, which income shall be calculated as the total of

  • (a) any pension income received by the person in that calendar year,

  • (b) the income from any office or employment or any business for that calendar year other than income from the office, employment or business that has ceased, and

  • (c) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income.

• Marginal note:Additional statement if loss of pension income in current payment period

  (4) If in a current payment period a person who is an applicant, or is an applicant’s spouse or common-law partner who has filed a statement as described in paragraph 15(2)(a), suffers a loss of income due to termination of or reduction in pension income, the person may, not later than the end of the second payment period after the current payment period, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant’s spouse or common-law partner, file a statement of the person’s estimated income for the calendar year in which the loss is suffered, which income shall be calculated as the total of

  • (a) any pension income received by the person in that part of that calendar year that is after the month immediately before the month in which the loss is suffered, divided by the number of months in that part of that calendar year and multiplied by 12,

  • (b) the income from any office or employment or any business for that calendar year, and

  • (c) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income.

• Marginal note:Additional statement if retirement before current payment period

  (5) If, in the circumstances described in paragraphs (a) and (b), a person who is an applicant, or is an applicant’s spouse or common-law partner who has filed a statement as described in paragraph 15(2)(a), ceases to hold an office or employment or ceases to carry on a business, the person may, not later than the end of the payment period that is immediately after the current payment period, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant’s spouse or common-law partner,

  • (a) if the person ceases to hold that office or employment or to carry on that business in the last calendar year ending before the payment period, file a statement of the person’s estimated income for the calendar year ending in the current payment period, which income shall be calculated as the total of

    • (i) any pension income received by the person in that calendar year,

    • (ii) the income from any office or employment or any business for that calendar year, other than income from the office, employment or business that has ceased, and

    • (iii) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income; and

  • (b) if the person ceases to hold that office or employment or to carry on that business in a month that is before the payment period and after the last calendar year ending before the payment period, file a statement of the person’s estimated income for the calendar year ending in the current payment period, which income shall be calculated as the total of

    • (i) any pension income received by the person in that part of that calendar year that is after the month in which the person ceases to hold that office or employment or to carry on that business, divided by the number of months in that part of that calendar year and multiplied by 12,

    • (ii) the income from any office or employment or any business for that calendar year, other than income from the office, employment or business that has ceased, and

    • (iii) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income.

• Marginal note:Additional statement if loss of pension income before current payment period

  (6) If, in the circumstances described in paragraph (a) or (b), a person who is an applicant, or is an applicant’s spouse or common-law partner who has filed a statement as described in paragraph 15(2)(a), suffers a loss of income due to a termination of or reduction in pension income, the person may, not later than the end of the payment period that is immediately after the current payment period, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant’s spouse or common-law partner,

  • (a) if the loss is suffered in the last calendar year ending before the payment period, file a statement of the person’s estimated income for the calendar year ending in the current payment period, which income shall be calculated as the total of

    • (i) any pension income received by the person in that calendar year,

    • (ii) the income from any office or employment or any business for that calendar year, and

    • (iii) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income; and

  • (b) if the loss is suffered in a month that is before the payment period and after the last calendar year ending before the payment period, file a statement of the person’s estimated income for the calendar year ending in the current payment period, which income shall be calculated as the total of

    • (i) any pension income received by the person in that part of that calendar year that is after the month immediately before the month in which the loss is suffered, divided by the number of months in that part of that calendar year and multiplied by 12,

    • (ii) the income from any office or employment or any business for that calendar year, and

    • (iii) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income.

• Marginal note:Where statement filed under subsection (2), (3) or (4)

  (7) Where under subsection (2), (3) or (4) a statement of estimated income is filed by an applicant or an applicant’s spouse or common-law partner, no supplement calculated on the basis of that statement may be paid to the applicant for any month in the current payment period before

  • (a) the month immediately following the month shown in the statement as the month in which the applicant or the applicant’s spouse or common-law partner, as the case may be, ceased to hold the office or employment or ceased to carry on the business, or

  • (b) the month shown in the statement as the month in which the applicant or the applicant’s spouse or common-law partner, as the case may be, suffered the loss of income due to termination or reduction of pension income,

  whichever is applicable.