Bill C-261, An Act to amend the Old Age Security Act (amount of full pension), would amend the federal Old Age Security Act. Its stated goal is to raise the full pension and increase the employment-income exemption used to calculate the Guaranteed Income Supplement (GIS); these are proposed changes, not provisions confirmed to be in force.
The bill would set the full monthly pension at $808.45 for the payment quarter beginning July 1, 2025. Its summary describes this as a 10% increase.
For calculating GIS benefits for months after June 2025, it would change how employment and self-employment income is deducted: the formula deducts all of the first $6,500, plus half of the next $6,500.
A person who applies for a partial pension after qualifying would have it increased by 0.6% for each month between qualification and approval of the application.
It would change a calculation used in the Act so that a product that is not a multiple of $4 is rounded up to the next multiple of $4.
It would repeal specified provisions about pension amounts and deferral. Without the current Act text, their full effect cannot be verified.
People receiving the full Old Age Security pension: If the bill became law as written, the stated full monthly amount would be $808.45 for the quarter starting July 1, 2025. The bill does not itself guarantee that every person aged 65 or older qualifies for the full pension.
GIS recipients with employment or self-employment income: For benefits for months after June 2025, the new formula would disregard the first $6,500 of qualifying earnings and half of the next $6,500 when calculating income for GIS purposes. The supplied text does not explain how this interacts with other income rules.
People applying late for a partial pension: Their pension amount would rise by 0.6% for each month from the month after they qualify through the month their application is approved.
Other OAS recipients: The bill also changes a calculation used elsewhere in the Act, but the supplied material does not include enough of that provision’s context to identify everyone affected.
The bill does not establish a new service or change who administers OAS.
The current Old Age Security Act was not supplied, so the existing rules and the full effects of repealing the specified provisions could not be checked.
It is unclear how the new $808.45 amount would interact with existing pension-adjustment rules.
The text gives dates for the proposed pension amount and GIS calculation, but does not state when the bill would come into force. Its passage or current status is not provided.
The supplied material does not explain who is affected by the changed calculation involving rounding to the next $4.
No cost estimate or details about any funding for the increased payments are provided.
The bill appears intended to raise the full pension, increasing the amount payable to people entitled to that pension.
A possible argument for the GIS change is that it would let recipients keep more of the first $13,000 in qualifying work earnings out of the income calculation: all of the first $6,500 and half of the next $6,500.
The increase for delayed applications could be seen as recognizing the months a person waits after qualifying before applying.