One of the important types of social assistance is the benefit for the maintenance of minor children (up to 18 years) or Child Tax Credit and The National Child Benefit Supplement, which is paid to low-income families and families with moderate incomes. The determining criterion is the annual income of the family, reported in the income declaration. For those receiving social assistance, the amount of the aforementioned supplement (Child Benefit Supplement) is deducted from it.
District Offices (Taxation Offices):
Toronto
36 Adelaide St. E.,
tel. 1-800-959-8281
North York
5001 Yonge St., Suite 1000,
tel. 1-800-959-8281
Scarborough
200 Town Centre Crt.,
tel. 1-800-959-8281
Mississauga
77 City Centre Dr.,
tel. 1-800-959-8281
From the moment of employment, employers automatically contribute to the funds of temporary disability benefits. Treatment for occupational diseases or injuries sustained at work is covered by the benefit. At the end of treatment, a one-time payment or pension is accrued.
Unemployment Benefits (Employment Insurance or EI)
To be eligible for this benefit, you need to have worked the specified amount of time at the company and, additionally, you must pay for your participation in the federal Employment Insurance fund. Typically, these payments are made by the employer, withholding a certain amount from your salary. The amount of the benefit depends on the salary, work experience, and the level of unemployment in a particular province. The benefit is taxable. If you lose your job through no fault of your own and cannot find another job, you are entitled to receive the benefit. The benefit is not paid to business owners and retirees, nor to those dismissed by their own choice or for any violations.
After losing your job, you should contact the nearest office of the Human Resource Centre of Canada (HRCC) as soon as possible. You have a maximum of four weeks from your last day of work to submit the application (EI application) for the benefit. In the application, you will need to provide information about your last place(s) of employment. An interview will be arranged to determine whether you are entitled to receive the benefit.
The employer is required to provide their former employee with a special form (“Record of Employment” - ROE), stating the duration of employment and the amount paid during that period. Employees who had more than one employer in the previous 52 weeks must attach all ROEs to their application, as this may affect the amount of the benefit.
You also need to present your SIN; a personal check marked void, so that the benefit can be directly deposited into your bank account; a medical certificate if you are applying for sickness benefits; a detailed account of the facts if you resigned or were dismissed in the past 52 weeks; financial details related to your last workplace (earnings, pension contributions, etc.).
Apply for the benefit even if some documents are missing, to avoid missing the application deadline. If a decision is made to grant you the benefit, the first check will be mailed by the end of the fourth week from the date of application. Payments can be made for a period of 14 to 45 weeks. Usually, the benefit amounts to 55% of the previous earnings, with a maximum of $413 per week.
The amount of the benefit also depends on the number of weeks worked in the year, the frequency of claiming benefits, the amount of the insurance contribution, and other factors. For claimants who worked 40 or more weeks, as well as in regions with an unemployment rate over 10%, the maximum period for receiving benefits is 45 weeks.
Canadian Pension System
THE CANADIAN PENSION INCOME SYSTEM HAS THREE LEVELS:
- Old Age Security (OAS) provides the first and basic level of pension fund. If you meet certain requirements for individuals permanently residing in Canada, upon reaching 65 years of age, this will entitle you to a modest monthly pension.
- The Canada Pension Plan (CPP) is the second level of the system. This plan provides you with a monthly old-age pension starting at age 60, provided that you have made contributions to this plan. The Canada Pension Plan also provides disability insurance, financial support for single seniors, and death insurance.
- The third level of the pension income system consists of individual retirement savings (Registered Retirement Savings Plans - RRSPs) and pensions from employers (Registered Pension Plans - RPPs).
The first and second levels of the Canadian pension income system constitute the Canadian public pension system. Currently, these pension forms are a significant part of retirees' income. We will briefly introduce you to each of the three levels.
Old Age Security (OAS)
The amount you receive in OAS depends on the number of years you lived in Canada after turning 18. Generally, you receive a full pension if you have lived in Canada for at least 40 years after your eighteenth birthday. If you have lived here for less, you may be eligible for a partial pension. With a partial pension, you will receive 1/40 of the full pension for each full year of your residence in Canada after turning eighteen.
In 2001, the full OAS pension was approximately $440 per month.
The Canada Pension Plan (CPP)
CPP – The Canada Pension Plan - can provide you with a monthly pension and other benefits.
The Canada Pension Plan pays monthly pensions to individuals who have worked and made contributions to the CPP.
This plan operates as an insurance plan, providing disability benefits and survivor benefits. This will provide a small monthly income for you and your dependent children if you sustain a serious injury at work. This plan will also provide monthly payments to your spouse or children in the event of your death.
Your contribution to CPP is calculated as a percentage of income (considering the minimum and maximum income rates set by the government for these purposes).
The exact amount depends on how much and how long you have contributed to the fund.
The age at which you decide to withdraw your pension also affects the amount of your monthly pension.
In 2001, the maximum CPP pension amount was $755 per month if taken at age 65.
The normal age for receiving the CPP pension is 65. However, you can start receiving your pension between ages 60 and 70. If you retire before age 65, you must stop working or earn less than the maximum allowed amount for the required period of time.
If you retire early, your pension will be reduced by 0.5% for each month until you reach age 65. If you retire later, this will increase your pension by 0.5% for each month worked after age 65 until age 70.
RPP and RRSP
The Registered Pension Plans (RPP) and Registered Retirement Savings Plans (RRSP) system is the main means used by the Canadian government to assist you in retirement saving. Contributions to these plans have tax advantages – contributions to these programs reduce the amount of annual taxable earnings, and income from retirement savings is not taxed at the time of accrual. You will pay taxes when you withdraw money from these plans or receive it as pension. You may have other personal savings. You can consider any assets that will grow and increase your income in retirement planning. For additional information about retirement programs, contact financial advisors.
GUARANTEED INCOME SUPPLEMENT – GIS
In addition to the aforementioned pension programs, Canadians with low annual income may also receive additional payments in the form of a monthly guaranteed income supplement (Guaranteed Income Supplement – GIS), as well as a supplement for minimum income (Guaranteed Annual Income System – GAINS).
GAINS is a supplement for seniors living in Ontario who are 65 years old and receive Old Age Security (OAS), as well as Guaranteed Income Supplement GIS. The amount of GIS and GAINS depends on the seniors' income. It should be noted that interests and savings are also considered as sources of income. Interest earned on savings reduces the amount of the benefits paid.
Spouse’s Allowance(SPA) - is designed for spouses who have lived in Canada for at least 10 years after reaching the age of 18, as well as for widows with low income. Payments are suspended if the declared family income exceeds established standards. The spouse’s allowance is a monthly supplement for those who receive Old Age Security (OAS) and Guaranteed Income Supplement (GIS).
Widows and widowers are entitled to receive a benefit called Survivors Benefit (benefit for loss of spouse). A surviving spouse or other heirs may also receive a one-time payment known as Death Benefit (benefit in connection with death). This benefit represents assistance with funeral expenses. The amount depends on the length of service and the earnings of the deceased. The maximum amount for the Death Benefit is $2500.
Individuals eligible for GIS and residing in Ontario automatically qualify for provincial GAINS benefits, which are determined based on the pension amount received.
Disability Benefits
Disability benefits are also paid out from the CPP fund. Such benefits are due to individuals unable to work due to illness. Disability benefits are paid until the illness lasts, but not longer than until age 65. If someone falls ill after 1998, then disability benefits are paid only if the person has worked for at least 4 years during the last 6 years. The benefit amount depends on income level, work experience, and the number of dependent children.
Other Privileges
Elderly individuals are also provided with the following privileges:
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- a reduced price for most prescription medications,
- the right to purchase discounted tickets for buses, subways, trains, theatre, movies, etc.,
- discounts when shopping in certain stores (the size and duration of discounts are announced directly by the stores),
- tax advantages,
- provision of free services specifically for seniors: snow removal in front of the house, transportation to doctor appointments, and some others.
