I'd like to make clear right off the bat that this measure, which is in the budget, isn't new. The Old Age Security Act currently includes a provision that prevents a person who is subject to a sponsorship agreement from receiving the guaranteed income supplement.
But now, after having resided in Canada for 10 years, the person can begin to collect the guaranteed income supplement whether they are being sponsored or not. The only thing the amendment is changing is removing the reference to the 10 years. This amendment will mean that if the person is still being sponsored, they will not qualify for the guaranteed income supplement, no matter how long they have lived in Canada.
This is being implemented to ensure consistency with the new sponsorship rules that came into force on January 1, 2014 for immigrants in the parent and grandparent category, which raised the period from 10 years to 20.