I'm Nathalie Martel, director of old age security policy at Employment and Social Development Canada. I'll be quick.
Division 2 of part 4 amends the Old Age Security Act to allow more low-income couples to receive higher benefits when they must live apart for reasons beyond their control.
Allow me to explain.
Senior couples who must live apart for reasons beyond their control—for example, when one spouse must live in a nursing home—face higher costs of living and are most at risk of living in poverty.
In the case of low-income couples, when both spouses receive the guaranteed income supplement and must live apart for reasons beyond their control, the legislation already allows the guaranteed income supplement to be paid at the higher single rate based on their individual incomes rather than on the combined income of the spouses. This generates higher benefits.
However, for other low-income couples, when one spouse receives the guaranteed income supplement and the other spouse receives the allowance, the act is silent and thus does not permit the same advantage.
By the way, the allowance is provided to low-income individuals aged 60 to 64 whose spouse or partner receives the guaranteed income supplement.
I will continue in French.
The amendment proposes extending the same right to couples in which one member is receiving the guaranteed income supplement and the other is receiving the benefit. We estimate that about 750 couples will benefit from this change, for an annual cost of $2.6 million. The change will enter into effect on January 1, 2017.