Canadian seniors eligible for a one-time payment to help with pandemic

Prime Minister Trudeau announced today that seniors eligible for the Old Age Security (OAS) and the Guaranteed Income Supplement (GIS) will also receive a tax free, one-time payment for the week of July 6 of up to $900 for single seniors and over $1,500 for senior couples.

This one-time special payment is to help Canadian seniors who are currently facing serious health concerns on top of the economic hardships and social distancing challenges that have accompanied the COVID-19 pandemic.

“Canada’s seniors have done so much for our country, and we need to be there for them during this challenging time. We know that the last few weeks have been difficult for seniors and their families across the country, especially those most vulnerable. That’s why we are continuing to support our seniors during this pandemic, with measures that will protect their health, and ensure their economic and social well-being.” said Prime Minister Trudeau.

With a federal budget of $2.5 billion in financial support, seniors who receive the OAS pension will get a payment of $300 and those who currently receive GIS will receive an extra $200, for a total of $500. Allowance recipients may also receive $500.

“As seniors stay safe by staying at home during COVID-19, their costs have gone up. Early on, we provided a special GST credit payment to help over 4 million seniors. Now we are providing a one-time, tax-free payment to all seniors eligible for Old Age Security, with extra support for the most vulnerable. Altogether, a low-income couple is receiving over $1,500 in support for increased costs during the pandemic. As we go through this unprecedented challenge, the government will continue to be there for Canadian seniors.” said Deb Shuite, Minister of Seniors.

Seniors will not have to apply for the one-time payment, it will be issued threw the week of July 6, automatically via direct deposit or by a mailed cheque. Canadian seniors currently living outside of the country may still receive the payment later on in July threw the same means however delays are likely to happen via international postal disruptions.

Key points to note regarding the special tax-free one time payment and other government programs are as follows:

• There are currently 6.7 million seniors who are eligible for the OAS pension and 2.2 million who are eligible for the GIS.
• The government has taken a number of actions to support seniors through the outbreak of COVID-19, such as:
• Providing a special top-up payment through the GST credit in April. More than 4 million low- and modest-income seniors benefitted from this top-up, receiving a total of $1.3 billion in financial support. Close to 85 per cent of single seniors and almost half of senior couples benefited from this payment.
• Temporarily extending GIS and Allowance payments if seniors’ 2019 income information has not been received. This will ensure that the most vulnerable seniors continue to receive their benefits when they need them the most. To avoid an interruption in benefits, seniors are encouraged to submit their 2019 income information as soon as possible and no later than by October 1, 2020.
• Providing seniors flexibility with their registered retirement income funds (RRIFs), by reducing minimum withdrawal requirements by 25 per cent for 2020. This will help preserve assets during a volatile market.
• Investing an additional $20 million to expand the New Horizons for Seniors Program to support organizations that offer community-based projects that reduce isolation, improve the quality of life of seniors, and help them maintain a social support network.
• Contributing $9 million through United Way Centraide Canada for local organizations to support practical services to Canadian seniors. These services could include the delivery of groceries, medications, or other needed items, or personal outreach to assess individuals’ needs and connect them to community supports.
• Investing $100 million to improve access to food for Canadians, including seniors, facing social, economic, and health impacts of the COVID-19 pandemic.