Canada's public pensions have evolved significantly over the last 75
years. Read on to find out how our pensions have evolved and when the key
changes were made:
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. |
1975 |
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. |
1975 |
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 65th 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 calculation of Canada Pension Plan benefits. |
1978 |
Canada Pension Plan pension 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. |
1987 |
Several new CPP provisions came into
effect, including:
· flexible retirement benefits payable as early as the age of
60;
· increased disability benefits;
· continuation of survivor benefits if the survivor remarries;
· sharing of retirement pensions between spouses or common-law
partners;
· expansion of credit splitting to cover the separation of married
or common-law partners. |
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. |