History of Pension Reforms in Canada

1927

The Old Age Pensions Act was enacted, permitting the federal government to give assistance to provinces that provided a pension to British Subjects 70 and older.

1952

The Old Age Security Act came into force, establishing a federally funded pension. It replaced the 1927 legislation that required the federal government to share the cost of provincially run, means-tested old age benefits.

1965

Amendments to the Old Age Security Act lowered the eligible age for the OAS pension to 65, one year at a time, starting in 1966 at the age of 69.

1966

The CPP and QPP came into force on January 1, 1966.

1967

The Guaranteed Income Supplement was established under the Old Age Security Program.

1972

Full annual cost-of-living indexation was introduced for OAS.

1973

Quarterly indexation was introduced for the Old Age Security Program.

1974

Full annual cost-of-living indexation was introduced for the CPP.

1975

The Spouse’s Allowance was established as part of the Old Age Security Program.

The same Canada Pension Plan benefits became available to male and female contributors, as well as to their surviving spouses or common-law partners and dependent children.

The retirement and employment earnings test for Canada Pension Plan retirement pensions at the age of 65 was eliminated (a contributor can, upon application, receive his or her retirement pension the month following his or her 65^th birthday, but can no longer contribute to the CPP.

1977

The payment of partial Old Age Security pensions was permitted, based on years of residence in Canada.

1978

Periods of zero or low earnings while caring for the contributor’s child under the age of seven were excluded from the calculations with Canada Pension Plan benefits.

Canada Pension Plan credits could be split between spouses in the event of a marriage breakdown (CPP credit splitting).

1985

Under OAS, the Spouse’s Allowance was extended to all low-income widows and widowers aged 60 to 64.

1989

The repayment of OAS benefits or “claw back” was introduced.

1991

Legislation was passed to assist those people who were denied CPP credit splitting as a result of a spousal agreement entered into prior to June 4, 1986.

1992

Three major amendments to the CPP came into effect:

·       A new 25-year schedule for employer-employee contribution rates was established.

·       Children’s benefits were increased.

·       Provision was made for individuals who were denied disability benefits because of late application.

1995

The period of retroactivity for OAS benefits changed from five years to one year.

Individuals were permitted to request that their OAS benefits be cancelled.

1998

The CPP moved from pay-as-you-go financing to fuller funding.

Contribution rates were increased.

A new investment policy was introduced.

2000

All  OAS and CPP benefits and obligations were extended to same-sex, common-law couples