Transcript BENEFITS UPDATE - Canadian Bar Association

BENEFITS UPDATE
Federal Income Security Benefits:
Ten Things that Elder-Law
Lawyers “Need to Know”
Gender Doesn’t Matter
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Federal income security benefits are given in
identical circumstances to “spouses” and
“partners” whether same-sex or opposite-sex.
The Canada Pension Plan Act and the Old Age
Security Act were amended in July 2000 to treat
same-sex common-law partners identically to
opposite-sex common-law partners.
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CPP Contributors Benefits
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Retirement Benefits of up to $844/mo.
Death Benefits of up to $2,500.
Survivors Benefits for:
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Spouses under age 65 of up to $471/mo.
Spouses age 65 or more of up to $506/mo.
Children (of Deceased or Disabled
Contributors) Benefits of up to $200/mo.
Disability Benefits of up to $1,031/mo.
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CPP Credit Splitting and Assignment
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Since 1987, CPP credits may be divided between
separated and formerly cohabiting spouses or
partners for the period of actual co-habitation.
Unmarried “partners” must apply for a creditsplit within four years of separation.
CPP Retirement Benefits may be shared or
“assigned” between co-habiting spouses or
partners.
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OAS Benefits
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OAS Pension of up to $484/mo.
Eligibility is based on (1) age of 65 y.o. and (2) years of
“residence” in Canada, after reaching age 18, of:
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40 years residence for a full pension; or,
10 years residence for a partial “pro-rated” pension.
Residence after the receipt of benefits doesn’t count.
“Treaty” residence outside Canada will count for the 10year or 40-year rules, depending on the terms of the
treaty.
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GIS Benefits
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Comes in one single combined payment with the
OAS pension.
Must be applied for yearly.
Maximum GIS payment is:
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$593/mo. for a single person;
$389/mo. for a pensioner’s spouse or partner.
Reduced by $1 for every $2 of “other income”,
i.e.: any income on the previous year’s tax
return, except OAS.
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Spouse’s Allowance
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OAS “Spouse’s Allowance” and “Widowed
Spouse’s Allowance” are now officially known as
the “Allowance”.
Same rules as the GIS for spouses, partners or
widows of OAS recipients ages 60-64 y.o.
Spouses Allowance up to $967/mo.
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Equivalent to OAS $484 + GIS $389/mo.
Widowed Spouses Allowance up to $874/mo.
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Roughly equivalent to 2X OAS of $484/mo.
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Payments Outside Canada
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CPP benefits are paid to a contributor anywhere
world-wide, regardless of residence; subject to
non-residents tax.
OAS benefits are paid outside Canada:
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indefinitely, for 20-year contributors.
for up to six months for less-than-20-year
contributors.
Absence from Canada for more than six months
disqualifies one from GIS.
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You Must Apply for Benefits
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Income Security Benefits are not paid
unless an application is made.
Retro-active benefits can be paid for the
month of application and the eleven
preceding months.
Longer retroactivity can be paid based on:
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mental incapacity to make an application; or,
administrative error.
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Appeals Process
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Eligibility for CPP, OAS and GIS benefits
can be appealed by:
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an internal review or “reconsideration”;
a review before the CPP or OAS Review
Tribunal; and,
with leave, before the Pension Appeals Board.
Rectifying “Administrative Error” is a
matter of ministerial discretion only.
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1-800-277-9914
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Income Security Programs can be easily
accessed by phone.
Service Agents have immediate access to
on-line client information.
Oral consent to release information can be
given by conference call.
The client will need to give a date of birth
and Social Insurance Number.
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