Benefits include the basic the basic OAS pension, the Guaranteed Income Supplement (GIS) and the Allowance. The OAS program is financed from Government of Canada general tax revenues.

How it works
The basic OAS pension isn't based on income or an individual's employment history. It's a taxable, fully indexed benefit that's adjusted quarterly to keep pace with inflation. Payments are made on a monthly basis.

When you are eligible
Canadian seniors can start collecting OAS at age 65 if they have lived in Canada for at least 10 years. Low-income seniors may be eligible for other benefits as early as age 60. You have to apply for OAS -- it is not automatic.

Benefits
The amount of your pension is determined by how long you've lived in Canada. If you've lived here, after reaching age 18, for periods that total at least 40 years, you may qualify for a full Old Age Security pension. If you haven't lived here for 40 years after age 18, you might still qualify for a full pension, provided you were 25 or older on July 1, 1977, and lived in Canada on that date; had lived in Canada (after reaching age 18) before that date; or had a valid immigration visa on that date. The patterns of your various absences from Canada are also factored in to whether you'll be approved for the full pension.

Guaranteed Income Supplement (GIS)
Residents of Canada who receive a basic, full or partial Old Age Security pension, and who have little or no income, are qualified for the GIS benefit. Recipients must re-apply annually for the GIS, and the amount of monthly payments is determined by a person's marital status and income.

Allowance and Allowance for the survivor
The Allowance, which also includes an allowance for persons whose spouse or common-law partner has died, are monthly benefits paid to the spouse or common-law partner of an OAS pensioner, or to a survivor. As of December 2004, to qualify, an applicant must be between the ages of 60 and 64 and must have lived in Canada for at least 10 years after turning 18. An applicant must also have been a Canadian citizen or a legal resident of Canada on the day preceding the application's approval. To qualify, the combined yearly income of the couple, or the annual income of the survivor, cannot exceed certain limits. For updates on qualifying for this allowance, visit the Human Resources and Skills Development Canada website at www.hrsdc.gc.ca.