2011 Benefit Changes to OAS and GIS

The maximum OAS Benefit for the first quarter of 2011 is $524.23, representing an indexing factor of .5%.

The Guaranteed Income Supplement (GIS) is a non-taxable benefit available to low-income seniors who are eligible for Old Age Security (OAS). The dollar amounts available depend on income level but for 2011 the maximum benefits are the following:

Single person $661.69

Spouse of OAS recipient $436.95

Spouse of OAS non-recipient $661.69

Spouse of Allowance Recipient $436.95

Income Security Programs Information Card is available:

http://www.servicecanada.gc.ca/eng/isp/statistics/rates/janmar11.shtml

All taxable income, with the exception of OAS payments and up to $3500 in employment earnings, is included in the income test and there are several maximum levels of income depending upon family composition and ages. Taxpayers and their advisors are urged to be careful with planning income withdrawals, as they will affect GIS and OAS claw backs. The Table of Rates for OAS, GIS and the Allowance allows specific rate calculations:

http://www.servicecanada.gc.ca/eng/isp/oas/tabrates/tabmain.shtml

ADDITIONAL EDUCATIONAL RESOURCES: EverGreen Explanatory Notes and the Knowledge Bureau certificate course: Tax Efficient Retirement Income Planning