June 01, 2010

OTTAWA, ONTARIO — The Honourable Diane Finley, Minister of Human Resources and Skills Development, and Senator Pierre-Hugues Boisvenu today announced the tabling of a bill that will amend the Old Age Security Act and terminate payment of Old Age Security (OAS) benefits to convicted criminals.
As a result of the action of our government, inmates will no longer be able to collect taxpayer-funded Old Age Security payments,” said Minister Finley. “Our government committed to taking immediate action to stop these payments, and Canadians know that when our government makes a commitment, we follow through.”

“It’s great to see that this government is putting victims and taxpayers first ahead of criminals. The suspension of OAS benefit payments to inmates does just that,” said Ms. Sharon Rosenfeldt, President of Victims of Violence. “I commend Prime Minister Harper and Minister Diane Finley for taking leadership on this important issue and ending entitlements for convicted criminals.”

“The Government is taking action to put an end to entitlements for prisoners and ensure that those Canadians who have spent their lives working hard and playing by the rules receive the benefits they deserve,” said Senator Boisvenu.

In Canada’s Jobs and Growth Budget, the Government stressed that it is committed to treating taxpayers fairly. The OAS program is funded through general tax revenues and is designed to help seniors meet their immediate, basic needs in retirement. Since an inmate’s basic needs, such as food and shelter, are already met and paid by public funds, there is no reason for Canadian taxpayers to also fund income support for inmates through OAS benefits.

Implementation will begin with inmates who are incarcerated in federal penitentiaries for two years or more. We will work with the provinces and territories to continue implementation in provincial and territorial institutions for inmates serving sentences of greater than 90 days.


Backgrounder

Old Age Security
The Old Age Security (OAS) program is the cornerstone of Canada’s retirement income system.
In order to be eligible to receive OAS benefits, applicants must meet specific residence requirements. To receive OAS benefits, an individual must have resided in Canada for a minimum of 10 years, after age 18. A person applying for OAS benefits who has fewer than 10 years’ residence in Canada may nevertheless qualify for a partial benefit if he or she has accumulated pension credits from one of the countries with which Canada has an International Social Security Agreement. With 40 years of residence in Canada, a full pension can be received.
The OAS program offers three types of benefits:

1. The OAS basic pension – This benefit is paid to individuals aged 65 or older who meet the residency requirements.
2. The Guaranteed Income Supplement (GIS) – The GIS is paid to individuals receiving the OAS basic pension with little or no other income.
3. The Allowances – The Allowance is paid to individuals aged 60 to 64 whose spouse or common-law partner receives the GIS. The Allowance for the Survivor is paid to individuals between the ages of 60 and 64, who have little or no income, and whose spouse or common-law partner has died, and who have not remarried or entered into a common-law relationship.

OAS benefits are adjusted quarterly in January, April, July and October to reflect changes in the cost of living as measured by the Consumer Price Index (CPI). The Old Age Security Act contains a guarantee that ensures that OAS benefits are not reduced, even when there is a decrease in the CPI. As such, if the CPI goes down, OAS benefits will remain the same.

Individuals must apply for OAS benefits. They do not start automatically.