Canada was a prosperous nation by the end
of the 1960s. Over the next two decades, however, we experienced
widespread economic uncertainty and too many seniors continued to live in
poverty.
Many changes to our public pension system were introduced to help
women, low-income workers, disabled people and other groups most
vulnerable to poverty.
Some important changes:
- Flexible retirement was introduced in 1987, allowing Canada Pension
Plan contributors the option of receiving a pension as early as the age of
60.
- The Guaranteed Income Supplement (GIS), introduced
in 1967, became permanent.
- The Spouse's Allowance was introduced in
1975 and the Widowed Spouse's Allowance was
introduced in 1985.
- Better inflation protection was put in place. From 1973, Old Age
Security benefits were indexed quartely as opposed to annually and
indexation was linked to the Consumer Price Index.
- Partial Old Age Security benefits were made available to people who
could not meet the residency requirements for a full pension.
- The first of a series of international social security agreements
became effective in 1979.
- The definition of "spouse" was added to the Canada Pension Plan and
redefined under the Old Age Security program to include both legal and
common-law spouses.
- Provisions were made for parents who left the workforce to raise their
children.
- In 1988, Aboriginal people earning income on reserves were allowed to
contribute to the Canada Pension Plan and receive benefits from it for the
first time.
What happened next?
Compare with today.
The Spouse's
Allowance:
The Spouse's Allowance, now called the "Allowance," is
part of the Old Age Security program. It is a benefit paid to spouses or
common-law partners of pensioners who receive the Guaranteed Income
Supplement.
In order to receive the Allowance, recipients
must:
- be 60 to 64 years old,
- have lived in Canada for a minimum of 10 years, and
- have a combined income below a specified maximum amount, which changes
every year.
In 2001, spouses or common-law partners with a
combined annual income of less than $23,568 were entitled to receive the
Allowance. The maximum benefit was $785.33 per month.
The Widowed Spouse's Allowance:
The Widowed Spouse's Allowance, now called the
"Allowance for the survivor," is also part of the Old Age Security
program. It is a benefit paid to widowed spouses or common-law partners
who:
- are 60 to 64 years old,
- have lived in Canada for a minimum of 10 years, and
- have an income below a specified maximum amount, which changes every
year.
In 2001, survivors between 60 and 64 whose annual
income was less than $17,304 were entitled to receive the Allowance for
the survivor. The maximum benefit was $867.02 per month.
Guaranteed
Income Supplement:
The Guaranteed Income Supplement (GIS) was originally
introduced in 1967 as a temporary measure to further reduce poverty among
seniors. Now a permanent program, the GIS:
- is part of the Old Age Security program,
- provides low-income Old Age Security pensioners with additional money,
and
- is income-tested: as the amount of income increases, the amount of the
supplement decreases.
