# Partial OAS pensioner with some other income, how to calculate GIS?



## lqmlllc (Feb 8, 2018)

Hi experts of this forum, 

The government website has clear information on how much GIS (guaranteed income supplement) a full OAS pensioner can receive, depending on the pensioner's other income (the rule is generally 50 cents reduction in GIS for every dollar of the pensioner's other income) They even have a look-up table for it. 

However this does not apply to partial OAS pensioners - people who have not lived in Canada for 40 years. Given we are a nation of immigrants, there are a lot of people who have lived here for 20,30 years but not 40. There is no clear information on government website about the calculation. 

In my case, I am single and will be turning 65 soon. I have lived here for 20 years. Therefore I will be eligible for partial OAS for 20year/40year= 1/2. In other words I will receive half of OAS, which is about $293/month. (i.e. $586/2). I have some other income (not from CPP or employment, it is from my foreign pension & rental income) about $800 per month. Based on my understanding, I will still be eligible for reduced GIS, just not the max GIS. So how much will my GIS be? 

Some websites say since the max GIS for full pensioner is $876/month, and my other income is $800/month, therefore GIS will be reduced by 800/2=$400, so I will receive 876-400=$476/month in GIS. But some say this is incorrect... Some say since I am not receiving full OAS, the GIS will have to be even more to make up for it. 

Thanks everyone and have a great day! Please help as it is very important for me and several other immigrant friends of mine who are in very similar situation, i.e. they will be partial OAS pensioners (< 40 years) , have some other income (but very little) and so should be eligible for at least some amount of GIS. 


Regards,
Jennifer


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## Dogger1953 (Dec 14, 2012)

Hi Jennifer - Read this article to understand how partial OAS affects GIS entitlement: https://retirehappy.ca/receiving-partial-oas-pension-affects-gis-amounts/


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## lqmlllc (Feb 8, 2018)

Hi thanks for replying! actually I had read this article before. but perhaps I am not very good at math... In the article, the example is for a partial pensioner with ~17,000 other income, which is the max GIS limit. therefore the article explains that he is no longer eligible for any regular GIS but only for the 'make-up difference' GIS which is the difference between full OAS and the partial OAS he is receiving ($563.74 – $352.34) . so this is easy to calculate. 

however in my case my other monthly income is ~800 ( 9600 annual) so, it is not yet the max income limit for regular GIS. so how does one calculate the GIS I will be eligible for? 

many many thanks
jenn


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## gibor365 (Apr 1, 2011)

My mom will be eligible to get OASin couple of years and was asking same question....
This is how I did calculation, Jenn it's very similar to your case:
I used current years numbers...
Thus, when my mom will be eligible for OAS, she will be leaving 10years in Canada, so OAS she will get is
$586.66/40*10 = $146.66, if she doesn't have any income GIS = 1,462.89 - 146.66 = 1,316.22

However , she has income below: $7,600 OAS from Israel + $1,000 interest from GIC/HISA = $8,600
As per article _For the most part, the amount of GIS that someone is entitled to is reduced by 50 cents for every dollar of income that the person has from other sources _. 
Thus her GIS will be reduced by income $8,600 * 0.5 = $4,300. So, her GIS will be $11,494.64 (1,316.22 * 12 - $4,300).
Totals: her payments (OAS +GIS) = $1,759.98 + $11,494.64 = *$13,254.68*
+ $8,600 in other income.
Am I correct?!

P.S. 
2 things I don't get:
1. What is meaning _"For the most part"_? What cases are "non-most part"?!
2. After getting OAS for 1 year, she will live 11 years in Canada. Will her OAS be increased to $586.66/40*11 = $161.33 and GIS reduced? Or if she starts to get OAS/GIS , it won't change in the future?


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## Dogger1953 (Dec 14, 2012)

lqmlllc said:


> Hi thanks for replying! actually I had read this article before. but perhaps I am not very good at math... In the article, the example is for a partial pensioner with ~17,000 other income, which is the max GIS limit. therefore the article explains that he is no longer eligible for any regular GIS but only for the 'make-up difference' GIS which is the difference between full OAS and the partial OAS he is receiving ($563.74 – $352.34) . so this is easy to calculate.
> 
> however in my case my other monthly income is ~800 ( 9600 annual) so, it is not yet the max income limit for regular GIS. so how does one calculate the GIS I will be eligible for?
> 
> ...


Hi Jenn - If you're single, you use rate table 1. For annual income of $9,600, the total OAS/GIS is $927.18 ($586.66 OAS if 40/40ths + $340.52 GIS). If you have a partial OAS, your total OAS/GIS will still be $927.18, so you just subtract your actual OAS from $927.18 to get your GIS.


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## Dogger1953 (Dec 14, 2012)

Hi Gibor - As per my earlier reply, just look at rate table 1 for annual income of $8,600 = combined OAS/GIS of $969.18. If her OAS is 10/40ths = $146.66, her GIS will be $822.52 ($969.18 - $146.66).
No, her OAS will not increase each year for the additional year of residence.


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## lqmlllc (Feb 8, 2018)

Dogger1953 said:


> Hi Jenn - If you're single, you use rate table 1. For annual income of $9,600, the total OAS/GIS is $927.18 ($586.66 OAS if 40/40ths + $340.52 GIS). If you have a partial OAS, your total OAS/GIS will still be $927.18, so you just subtract your actual OAS from $927.18 to get your GIS.



hi Dogger1953 yes I am looking at table 1. so in conclusion, with my annual income of $9600, my combined OAS/GIS payment will be $927, correct? we don't have to subtract something from that $927 any more right? everything has been factored in. 

I have a friend who is in very similar situation (single, 20 year residency) but her income is little more, about $15,000 annual. according to your method, we just look at table 1, and the combined OAS/GIS payment is $702. that's it? we don't have to reduce this $702 by some amount based on her $15,000 income anymore? 702 is the final number? 


thanks so much!!! 
jenn


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## gibor365 (Apr 1, 2011)

Dogger1953 said:


> Hi Gibor - As per my earlier reply, just look at rate table 1 for annual income of $8,600 = combined OAS/GIS of $969.18. If her OAS is 10/40ths = $146.66, her GIS will be $822.52 ($969.18 - $146.66).


Then looks like calcs in link provided above is incorrect? 


> For the most part, the amount of GIS that someone is entitled to is reduced by 50 cents for every dollar of income that the person has from other sources


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## gibor365 (Apr 1, 2011)

Dogger1953 said:


> No, her OAS will not increase each year for the additional year of residence.


Is it general rule? In my case, I won't be eligible for any GIS.

At age 65 , I will be 32 years in Canada, so my basic OAS is $469.33. (586.66/40*32)
So, when I'm 66, my base OAS will be still $469.33 or (586.66/40*33) = $484?

As per official website


> If you delay receiving your OAS pension, your monthly pension payment will be increased by 0.6 percent for every month you delay receiving it, up to a maximum of 36 percent at age 70.


Thus, if I delay it to 66, would it be 586.66/40*33 * 7.2% = $518.84 or any other calcs be applied?


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## Dogger1953 (Dec 14, 2012)

Hi Jenn - Yes, your total OAS/GIS is $927 and your friend's is $702. You only have to subtract the OAS portion if you want to know the GIS portion.


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## Dogger1953 (Dec 14, 2012)

gibor365 said:


> Then looks like calcs in link provided above is incorrect?


Did you have a question?


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## Dogger1953 (Dec 14, 2012)

gibor365 said:


> Is it general rule? In my case, I won't be eligible for any GIS.
> 
> At age 65 , I will be 32 years in Canada, so my basic OAS is $469.33. (586.66/40*32)
> So, when I'm 66, my base OAS will be still $469.33 or (586.66/40*33) = $484?
> ...


Hi Gibor - If you don't apply for OAS and you delay one year, you can either take 33/40ths or 32/40ths with a 7.2% increase but you can't take 33/40ths plus 7.2% increase.


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## gibor365 (Apr 1, 2011)

Dogger1953 said:


> Hi Gibor - If you don't apply for OAS and you delay one year, you can either take 33/40ths or 32/40ths with a 7.2% increase but you can't take 33/40ths plus 7.2% increase.


 should I tell to cleck which option I want? 33/40ths plus 7.2% increase give a bit more cash 

So, my OAS will be the same until I die, even though at 73 I will be living 40 years in Canada?


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## Daniel A. (Mar 20, 2011)

gibor365 said:


> should I tell to cleck which option I want? 33/40ths plus 7.2% increase give a bit more cash
> 
> So, my OAS will be the same until I die, even though at 73 I will be living 40 years in Canada?



Thats right Gibor once you start collecting that is it the bar does not change beyond cost of living adjustments. Your collecting based on 32-33 years not 40 years its just a fact. 
.


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## Dogger1953 (Dec 14, 2012)

gibor365 said:


> should I tell to cleck which option I want? 33/40ths plus 7.2% increase give a bit more cash
> 
> So, my OAS will be the same until I die, even though at 73 I will be living 40 years in Canada?


Hi Gibor - They're supposed to give you whatever pays you the highest amount, unless you choose the opposite for some reason. But I know of at least one person that that didn't happen to, so keep your eyes open.


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## gibor365 (Apr 1, 2011)

Daniel A. said:


> Thats right Gibor once you start collecting that is it the bar does not change beyond cost of living adjustments. Your collecting based on 32-33 years not 40 years its just a fact.
> .


Thanks for reply,but this is not fair


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## heyjude (May 16, 2009)

gibor365 said:


> Thanks for reply,but this is not fair


Why is it not fair?


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## Daniel A. (Mar 20, 2011)

Gibor the rules offer you the choice of when to start your OAS if you want more you delay why should you be able to collect a benefit for several years and then go back and say now I have the full years in finally so change my start date. You will have collected some 50,000.00 dollars by the time you hit 73 years old maybe we can change the rules and you give back the 50,000.00 and start over that might be fair. What really bugs me is people that come to Canada contribute the minimum and expect the maximum return. 

Whats not fair is GIS people that do nothing to save future retirement income or structure things in such a way to be eligible for GIS. To me its wrong that someone with a million dollars in assets can collect public money claiming to be poor.


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## gibor365 (Apr 1, 2011)

heyjude said:


> Why is it not fair?


That at age 73 I will be 40 years in Canada and should get full OAS, and not 32/40 that I will be at age 65.



> What really bugs me is people that come to Canada contribute the minimum and expect the maximum return.


Really?! People who come to Canada , come already with degrees and usually start paying taxes right away. Canada didn't pay for their child care, education, health care etc. This is why Canada brings immigrants.

I just couldn't imagine that after 10 years living in Israel , one can collect $7,000 in basic OAS (and you shouldn't even continue live in Israel).
And in Canada, after 33 years living here , OAS is $5,640


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## Dogger1953 (Dec 14, 2012)

gibor365 said:


> That at age 73 I will be 40 years in Canada and should get full OAS, and not 32/40 that I will be at age 65.
> 
> 
> Really?! People who come to Canada , come already with degrees and usually start paying taxes right away. Canada didn't pay for their child care, education, health care etc. This is why Canada brings immigrants.
> ...


I have nothing against immigrants per se, but it really bugs me when someone complains about Canada and holds out their mother country as being so wonderful. You must have had some reason(s) for leaving there and some reason(s) for choosing Canada. Is someone holding a gun to your head, forcing you to stay here?


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## Daniel A. (Mar 20, 2011)

OAS rules have been in place for many years without change.

What Israel does I could care less about.


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## gibor365 (Apr 1, 2011)

Dogger1953 said:


> I have nothing against immigrants per se, but it really bugs me when someone complains about Canada and holds out their mother country as being so wonderful. You must have had some reason(s) for leaving there and some reason(s) for choosing Canada. Is someone holding a gun to your head, forcing you to stay here?


Family reasons .... and "The grass is always greener on the other side of the fence"


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## kcowan (Jul 1, 2010)

Daniel A. said:


> What really bugs me is people that come to Canada contribute the minimum and expect the maximum return.





gibor365 said:


> Really?! People who come to Canada , come already with degrees and usually start paying taxes right away. Canada didn't pay for their child care, education, health care etc. This is why Canada brings immigrants.


It is the immigrant that has their $1 million plus home paid for by parents overseas and gets GIS because they have no Canadian income.

What we need is an asset test for all social programs with an exemption for some of them. The US exempts $250k for principal residence from capital gains taxes, for example.


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## gibor365 (Apr 1, 2011)

> It is the immigrant that has their $1 million plus home paid for by parents overseas and gets GIS because they have no Canadian income.


Where have you heard about such cases?! Imagination?! Person can start getting GIS at 65, how old should be parents?! and no one gonna get immigrant status/PR at such age.



> What we need is an asset test for all social programs


 In theory, maybe such test for GIS is useful, but imho, government will spend more taxpayer money on developing and implementing such test, then potentially will recover


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## Daniel A. (Mar 20, 2011)

kcowan said:


> It is the immigrant that has their $1 million plus home paid for by parents overseas and gets GIS because they have no Canadian income.
> 
> What we need is an asset test for all social programs with an exemption for some of them. The US exempts $250k for principal residence from capital gains taxes, for example.



++1


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