Federal Old-Age Pensions are introduced
Signing the Old Age Pension Act. Library and Archives Canada, C-013233
1927
The Old Age Pensions Act of 1927 was passed because of growing concern about social welfare in Canada. At first, the old-age pension system drew its funding from general taxes, was non-contributory and involved means-testing (seniors’ benefits were calculated according to their incomes). Two decades later, the system was changed to a voluntary and contributory pension program. William Lyon Mackenzie King’s Liberal government passed the act with the support of the Progressive Party and the Labour Party. Both parties recognized the need for stronger social security in Canada.
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