OAS

Question 1

What is the OAS?

Answer 1

A federally funded social security program to help lower and middle income Canadian residents

Question 2

What are the benefits that fall under the OAS?

Answer 2

1. OAS retirement pension - available to all Canadian residents who meet minimum residency requirements
2. GIS - for lower income people 65 and older.
3. Allowance and allowance for survivor

Question 3

What benefit does not require income, employment status or contributions to receive it? CPP or OAS?

Answer 3

OAS. It is based on residency requirements alone.

Question 4

What is the minimum age required to receive OAS?

Answer 4

65

Question 5

If a person is a Canadian citizen and legal resident since age 18, what is the minimum length of time they had to have resided in the country to be eligible for OAS if they are receiving benefits outside of Canada?

Answer 5

20 years - if receiving benefits outside of Canada

10 years - if receiving benefits in Canada

Question 6

What is the latest an individual can delay OAS and the maximum rate for the increased pension?

Answer 6

5 years - age 70

0.6% for each month OAS pension is delayed to a max of 36% (same numbers as early retirement reduction for CPP).

Question 7

If OAS is deferred, can the spouse qualify to revive the allowance for the period the OAS is deferred?

Answer 7

No. In addition the individual is also ineligible for GIS.

Question 8

What are thresholds for OAS for 2021?

Answer 8

Below $79,845 - no clawback

Between $79,845 and $129,075 - partial clawback

Above $129,075 - full clawback

Question 9

When do OAS benefits stop?

Answer 9

When person dies or if person is a non resident for more than 6 months (and doesn’t have the 20 year minimum residency requirement after reaching age 18)

Question 10

How does one apply for OAS?

Answer 10

Individuals are automatically enrolled for OAS pension

If an individual wants to defer pension, then they must complete an application and benefits begin the month after eligibility.

Benefits are retroactive for 12 months

Question 11

If a pensioner leaves the country after OAS begins how long does the benefit continue?

Answer 11

Continues one month for only the month of departure and 6 months thereafter and it stops (unless recipient has at least 20 years of residence in Canada after reaching 18)

Question 12

If pensioner leaves the country and their OAS benefit stops, when does it restart?

Answer 12

When he/she returns to Canada, they can apply to restart.

Question 13

How much does an applicant who does not satisfy the residency requirement after get off he or she has a minimum of 10 years of residency in Canada after reaching age 18 get in partial OAS payment?

Answer 13

1/40 of full pension for each complete year or residence in Canada after reaching 18.

Even if the person stays additional years after the approval of a partial pension, the amount can’t be increased.

Question 14

Who are the people that can receive partial OAS?

Answer 14

An applicant who doesn’t satisfy residence requirement but has stayed a minimum of 10 years in Canada after reaching age 18

A former resident of Canada with at least 20 years of residence after age 18 who doesn’t return to Canada

Question 15

Who qualifies for full OAS pension?

Answer 15

A person who lived in Canada for at least 40 years between age 18 and 64 inclusive

Or if on July 1, 1977, the person was 25 or older and

• resided in Canada on July 1, 1977
• resided in Canada priory to July 1, 1977 after 18
• held a valid immigration visa on July 1, 1977

Question 16

If an OAS pensioner and spouse are 65 and over, and the pensioner does, can the spouse receive OAS survivor benefits?

Answer 16

No

Question 17

When do OAS payments begin?

Answer 17

At age 65

Question 18

When does the allowance begin for low income pensioners?

Answer 18

Age 60 - 64

Question 19

When does a pensioner qualify for the full pension?

Answer 19

40 years residency after age 18

Question 20

If they do not qualify for the full pension when are they eligible for the prorated pension?

Answer 20

Minimum is 10 years residency after age 18

1/40 of the full pension for each complete year of residency after age 18

Question 21

How is OAS clawback calculated?

Answer 21

Net income including OAS - threshold X 15%

OAS threshold is $79,845 in 2021

Net income is based on prior year’s income

Maximum net income threshold is $129,075 for full OAS repayment.

Repayment is 15% of the amount by which the individual’s net income (including OAS benefits) exceeds minimum level.

Question 22

Mahmoud can receive a full OAS pension but his net income last year was $85,000 while the OAS threshold is $79,845 for 2020. What is the clawback amount?

Answer 22

$85000 - $79845 = $5,155

$5,155 X 0.15 = $773.25

$773.25/12 = $64.44 is what he will pay back, which can be deducted from his OAS monthly pension.