Good afternoon, everyone.
Division 9 of part 4 of the budget implementation act proposes to amend the Old Age Security Act in two ways. First, it increases the guaranteed income supplement top-up by $947 per year for the lowest-income single pensioners and for pensioners whose spouse or common-law partner is not eligible for old age security benefits. This increase also applies to the top-up of the allowance for the survivor.
The change will be effective on July 1, 2016. It is estimated that close to 900,000 low-income seniors will benefit from this measure at a cost of $669 million in 2017-18, the first full year of implementation.
Second, it is proposed that the age of eligibility for the old age security pension and the guaranteed income supplement be restored to 65, and that the age of eligibility for the allowances be restored to 60. You will remember that the act was amended in 2012 in order to raise the age of eligibility for the old age security pension and the guaranteed income supplement from 65 to 67, and from 60 to 62 for the allowances. The increase was supposed to be implemented gradually, from 2023 to 2029. Cancelling the increase in the age of eligibility will have no impact on the costs of the old age security program before 2023.