Canadian Pensions and Benefits Increased and/or Reduced

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Most seniors in Canada receive two government pensions: CPP – Canada Pension (QPP in Quebec) & OAS – Old Age Security. Of course former employees, including those retired from government, do get additional employer specific pensions. Lower income seniors, however, are often out of luck.

CPP – Canada Pension

(link to Canada Pension Plan (CPP) - Benefits and Provisions).

The amount or the monthly benefit is based only that individuals employment, since 1965, when CPP was introduced. The amount is adjusted to the CPI - Consumer Price Index. In 2010 this was increased by 0.4% (see also, link to Services Canada CPP information). Canada Pension Plan (CPP) - Payment Rates.

OAS – Old Age Security

(link to Benefits of Old Age Security pension for low-income seniors).

Like CPP the amount is adjusted to the CPI - Consumer Price Index. In 2010 this was increased by 0.4%. However, for low income individuals this also includes an additional GIS – Guaranteed Income Supplement. That's where it gets a little tricky. Since the GIS is based on the prior year's earnings the amount will fluctuate. Indeed, the amount may go down if 2009 income was much higher than 2008. OAS is for individuals who are 65 or over, have lived in Canada for at least 10 years after turning 18, and are a Canadian citizen or a legal resident. But, you must apply, usually through Services Canada to get the benefit - linked to details of how to proceed ... (link to application forms here).

Higher income individuals may have some of the OAS 'clawed-back' in subsequent years. (see link - Line 235 - Old Age Security (OAS) benefits repayment).

GST/HST – Goods and services / harmonized sales tax credit application.

(link to GST/HST credit - Application and Eligibility).

File your tax returns and check the box or you will not get the benefit of this credit. Some of these benefits will not apply to higher income individuals.

Provincial Tax Credits
Be certain to complete the Provincial Tax Credit forms, and attach to your return. The specific benefits and forms are different, and unique to each province. File your tax returns or you will not get the benefit of this credit (these are the .pdf forms for the current, 2010 taxation year):

• Alberta
• BC
• Manitoba
• New Brunswick
• Newfoundland and Labrador
• Northwest Territories
• Nova Scotia
• Nunavut
• Ontario
• Prince Edward Island
• Québec – Programmes et crédits (2009) Documents relatifs à la déclaration de revenus TP-1 / English version Quebec link to Programs and Credits (from the Province of Quebec) – link to 2009 Income Tax Return Documents TP-1-V
• Saskatchewan
• Yukon

File

your Individual Income Tax Return (Credit and Benefit Return) on time, by the deadline (April 30^th for most individuals, but June 15^th for 'self-employed' individuals). Penalties and/or interest accrue on past due amounts. There is no specific penalty for not filing, however, it's just that you might miss out on some of the benefits.

Employment Insurance (EI) benefits repayment

(link to Line 235 - Employment Insurance (EI) benefits repayment)

Low-income individuals

can often get free tax filing help at seniors centres and with programs set up by the Canada Revenue Agency (link to Community Volunteer Income Tax Program (CVITP)).

Other Links

Canada Revenue Agencies “Topics for seniors”.

TFSA – Tax Free Savings Accounts – link: You can withdraw money from the TFSA at any time and for any reason, with no tax consequences and without affecting your eligibility for federal income-tested benefits and credits. For the taxpayer, the BEST DEAL AROUND!

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