(a) During 1994 approximately $177 million in old age security, OAS, benefits was paid outside Canada. It is not known how much of this was paid to citizens of Canada because an individual does not have to be a Canadian citizen to qualify for OAS.
The five countries to which the highest overall OAS payments were made in 1994 are in descending order:
United States-$92.2 million Italy-$17.8 million United Kingdom-$13.6 million Greece-$5.3 million Portugal-$4.7 million
(b) To receive an OAS pension an individual must be a Canadian citizen or legal resident of Canada on the day preceding approval of the OAS pension application; or if no longer living in Canada, must have been a Canadian citizen or legal resident of Canada on the day preceding the day he or she stopped living in Canada. In addition, an individual must have resided in Canada for a minimum of 10 years after age 18. To receive an OAS pension outside Canada, an individual must have lived in Canada for at least 20 years after age 18.
The amount of the OAS pension paid either within Canada or abroad depends on how long an individual has lived in Canada after age 18. A full pension is payable with 40 or more years of residence in Canada after age 18. A partial pension is payable with less than 40 but at least 10 years of residence after age 18, accrued at the rate of one-fortieth of the full pension for each year of residence after age 18.
Individuals with less than 40 years of residence can qualify for a full pension under a former set of rules that is being phased out over a 40-year period which began July 1, 1977. A full OAS pension can be paid if, on July 1, 1977, an individual was 25 years of age or over, and lived in Canada on July 1, 1977; had lived in Canada before July 1, 1977 after reaching age 18; or possessed a valid immigration visa on July 1, 1977.
In such cases, an individual must have lived in Canada for the 10 years immediately preceding approval of the OAS application. Absences in this 10-year period may be offset if the individual lived in Canada after age 18 and before the 10-year period for periods that equal at least three times the length of the absence. In this case, however, the individual is required to live in Canada for a full year immediately preceding approval of the OAS application.
The Old Age Security Act permits the inclusion of the old age security program in reciprocal social security agreements. Such agreements enable people who live or who have lived in the other contracting country to add periods of residence abroad, or in some cases periods of contributions, to periods of residence in Canada to satisfy the minimum eligibility requirements for the OAS pension, and the income tested spouse's allowance. For example, someone who lived in Canada for less than the 10 years required to qualify for a partial OAS pension in Canada would be able to use periods of residence in the other country to meet the 10-year requirement. As well, a similar provision would apply to someone who lived in Canada for less than the 20 years required for payment of the OAS pension outside the country.
Once eligibility for the OAS pension is established in this way, the actual pension paid is based only on actual periods of residence in Canada.
The answer to (c) is no. Payment outside Canada depends only on whether an individual has resided in Canada for at least 20 years after age 18 or is living in a country with which Canada has concluded an international social security agreement.