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1867-1914 - Old Age and Poverty 1915-1927 - Our First Old Age Pension 1928-1951 - Demanding More 1952-1967 - Reducing Poverty 1968-1989 - Reaching More Canadians 1990-2000 - Pensions on Solid Ground 2000 on - A Secure Future

1968-1989 Reaching More Canadians

Summary

Getty - Eyewire Image Bank, #BAB-080-3, Mother and children.

Canada was a prosperous nation by the end of the 1960s. Over the next two decades, however, we experienced widespread economic uncertainty and too many seniors continued to live in poverty.

Many changes to our public pension system were introduced to help women, low-income workers, disabled people and other groups most vulnerable to poverty.

Some important changes:

  • Flexible retirement was introduced in 1987, allowing Canada Pension Plan contributors the option of receiving a pension as early as the age of 60.
  • The Guaranteed Income Supplement (GIS), introduced in 1967, became permanent.
  • The Spouse's Allowance was introduced in 1975 and the Widowed Spouse's Allowance was introduced in 1985.
  • Better inflation protection was put in place. From 1973, Old Age Security benefits were indexed quartely as opposed to annually and indexation was linked to the Consumer Price Index.
  • Partial Old Age Security benefits were made available to people who could not meet the residency requirements for a full pension.
  • The first of a series of international social security agreements became effective in 1979.
  • The definition of "spouse" was added to the Canada Pension Plan and redefined under the Old Age Security program to include both legal and common-law spouses.
  • Provisions were made for parents who left the workforce to raise their children.
  • In 1988, Aboriginal people earning income on reserves were allowed to contribute to the Canada Pension Plan and receive benefits from it for the first time.

What happened next?

Compare with today.

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ssThe Spouse's Allowance:

The Spouse's Allowance, now called the "Allowance," is part of the Old Age Security program. It is a benefit paid to spouses or common-law partners of pensioners who receive the Guaranteed Income Supplement.

In order to receive the Allowance, recipients must:

  • be 60 to 64 years old,
  • have lived in Canada for a minimum of 10 years, and
  • have a combined income below a specified maximum amount, which changes every year.

In 2001, spouses or common-law partners with a combined annual income of less than $23,568 were entitled to receive the Allowance. The maximum benefit was $785.33 per month.

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The Widowed Spouse's Allowance:

The Widowed Spouse's Allowance, now called the "Allowance for the survivor," is also part of the Old Age Security program. It is a benefit paid to widowed spouses or common-law partners who:

  • are 60 to 64 years old,
  • have lived in Canada for a minimum of 10 years, and
  • have an income below a specified maximum amount, which changes every year.

In 2001, survivors between 60 and 64 whose annual income was less than $17,304 were entitled to receive the Allowance for the survivor. The maximum benefit was $867.02 per month.

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ssGuaranteed Income Supplement:

The Guaranteed Income Supplement (GIS) was originally introduced in 1967 as a temporary measure to further reduce poverty among seniors. Now a permanent program, the GIS:

  • is part of the Old Age Security program,
  • provides low-income Old Age Security pensioners with additional money, and
  • is income-tested: as the amount of income increases, the amount of the supplement decreases.