Federal Income Programs

4-6 Federal Income Programs


PURPOSE

1. To inform staff of eligibility criteria, benefits and indexing provisions of Federal Income programs.

PRINCIPLE

2. Workers should be sufficiently familiar with federal program benefits that they can refer eligible persons to the appropriate programs.

3. It should not be assumed that the applicant is aware of possible eligibility for such benefits.

POLICY

4. Benefits from any Federal Income Program (except the Child Tax Benefit portion of the Canada Child Tax Benefit and income received by dependant students) shall be included as income to the applicant (Instruction 4-5).

5. If actual benefits received are unable to be verified, the rates in Instruction 4-6-1 are to be used. This table will be updated quarterly.

6. Persons in receipt of federal income benefits may receive regular indexed cost-of-living adjustments. It is not necessary to adjust an applicant’s income for such increases until the next “scheduled” review or at the time of other income/expense adjustment, whichever occurs first.

PROCEDURE

7. Staff should be familiar with the basic eligibility requirements and benefit provisions of the following programs. Specific rates and maximum benefits may be found in Instruction
4-6-1.

(a) War Veterans Allowance

(i) This is an allowance payable to veterans of the Canadian, Commonwealth and Allied Forces if their active war service, age or incapacity, residence and income meet the requirements of the Act.

(ii) Monthly rates (including orphans) are increased quarterly in January, April, July and October.

(iii) Further assistance is available as outlined by the Department of Veteran’s Affairs. For information telephone 566-8888.

(b) Old Age Security/Guaranteed Income Supplement

(i) A monthly benefit payable to all persons 65 years of age or over who meet the residence requirements. In addition, for those persons who qualify, there is a Guaranteed Income Supplement. This is a monthly payment added to the Old Age Security Pension and is based on the pensioner’s income for the previous year and his/her current marital status.

(ii) Residence Requirements - An applicant will qualify for Old Age Security provided:-

A) A person who has resided in Canada for at least 40 years after reaching the age of 18 may qualify for a full OAS pension.

B) A person who has not resided in Canada for 40 years after the age of 18 may still qualify for a full pension if, on July 1, 1977, he or she was 25 years of age or over, and
1.) resided in Canada on the date, or
2.) had resided in Canada after the age of 18 and before that date, or
3.) possessed a valid immigration Visa on that date.

To qualify, a person must normally have resided in Canada for 10 years immediately before approval of his or her application. However, under certain circumstances, an exception can be made. A person who, after the age of 18, lived in Canada for at least three years for each year of absence during that 10-year period, and also resided in Canada for at least one year immediately before the application is approved, will qualify for a full OAS pension.


(iii) Indexing for Old Age Security Pension (O.A.S. and G.I.S.) is done quarterly in accordance with the Consumer Price Index.

(iv) For further information telephone 1-800-277-9914

(c) Spouse’s Allowance

(i) A monthly benefit payable to the spouse of a living Old Age Security pensioner who is eligible for the Guaranteed Income Supplement. In order to qualify, the spouse must be between 60 and 65 years of age and the couple must be living in the same residence. This program is designed to provide additional income in situations where a couple is living on a single pension. The allowance is still payable to the spouse after the older pensioner dies.

(ii) Widowed Spouse’s Allowance - An allowance for widowed persons between the ages of 60 and 64 whose spouse has died prior to receiving Old Age Security.
It provides widowed persons with a monthly income until they reach age 65 and are eligible to receive Old Age Security.

(iii) Indexing of these rates occurs quarterly based on the Consumer Price Index.

(iv) For further information telephone 1-800-277-9914

(d) Canada Pension Plan

(i)Retirement Pension

A) Payable to persons age 65 and over who have contributed to the Canada
Pension Plan.

B) The amount is based on 25 percent of the current value of the average
monthly pensionable earning.

(ii) Disability Benefits

A) Payable to persons under age 65 who have contributed to the Canada Pension Plan during a minimum qualifying period (never less than four of the last six years), and who can be determined to be disabled within the meaning of the Canada Pension Plan legislation.

B) The monthly disability benefit includes a fixed amount, plus an amount based on how much and for how long the contributor paid into the Plan. (See 4-6-1 for max). The amount of the Disability Pension is derived from a flat rate component plus 75 percent of the current value of the retirement pension.

(iii) Survivor’s Benefits - A benefit payable to the survivors of a deceased person who has contributed to the Canada Pension Plan during the minimum qualifying period (minimum three years).

A) Death Benefit
Payable to the estate of the deceased contributor. The amount of the benefit consists of six times the current value of the calculated retirement pension at the time of death to a maximum of $2,500.

B) Spouse’s Pension

Payable to the eligible spouse of the deceased contributor.

The amount of the pension for a spouse under 65 is a flat rate component plus 37 ½ percent of the current value of the calculated retirement pension.

For a spouse age 65 or over, the pension consists of either:-

- 60 percent of the deceased’s retirement pension, or

- If the spouse is a contributor, and is eligible for both the Retirement pension and the Survivor’s pension, the maximum pension payable is the maximum retirement benefit for the year that the second pension becomes payable.

C) Orphan’s Benefits

This is payable to the parent or guardian of the dependant children of the deceased contributor up to the age of 18.

(iv) All Canada Pension benefits are indexed annually in January.

(v) For further information telephone 1-800-277-9914