ECON 241 Lecture Notes - Lecture 6: Ibm 7070, Working Poor, Old Age Security
Document Summary
Meant to provide guaranteed minimum std of living to seniors. ~=35 billion fed : old age security. Paid monthly to those 65+ years who lived in canada at least 10 years (min pension is 1/4 full) Full pension if lived in canada for 40 years often??? age 18. Fully indexed to inflation on quarterly basis. Benefits financed out of general tax revenue. If annual income > ~=,000 will repay oas at rate of 15% with total oas disappearing at income of ~=,000. 2013 introduced defined??? of benefit up to age 70. Monthly benefits paid to those 65+ years who receive oas, but have little or no other income. Paid on the basis of family income, excluding oas, fully indexed. Not subject to pit (personal income tax) Amount of benefit depends on family income and family status: single, widowed or divorced, spouse receive full oas, spouse not receive oas, spouse receives allowrance. Issues: taxback rate of 50% is high.