In response to the economic challenges in recent years, the Canadian government has announced various financial aid measures to support vulnerable groups, including seniors. One such initiative is the Old Age Security (OAS) pension, a monthly taxable benefit accessible to Canadians aged 65 or above who fulfill the eligibility criteria.
Similar to CPP or the Canada Pension Plan, its primary aim is to aid the retirement income of elderly Canadians during these uncertain times. Unlike the CPP, however, the OAS program is funded through tax revenues, so individuals receiving the pension are not required to contribute.
This post outlines the details of OAS and the associated one time payment of $300 for older seniors, including eligibility criteria and payment dates.
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One Time $300 Payment for Seniors: How to Receive the Payment?
OAS Eligibility Criteria
To qualify for the one-time Old Age Security (OAS) monthly payment for seniors in Canada, individuals must meet certain eligibility criteria. As of the latest information available, this includes the following:
- For Canadian residents, eligibility entails being a Canadian citizen (aged 65 or older) or having resided in the country for at least ten years since the age of 18.
- For those residing outside Canada, eligibility requires being a Canadian citizen (aged 65 or older) or a legal resident upon departure from the country and having resided in Canada for a minimum of 20 years starting from age 18.
If an individual lived abroad while employed by a Canadian entity, e.g., banks and the Canadian Armed Forces, they may count that time towards their residency requirement if they meet either of the following conditions:
- They returned to Canada within six months of the termination of their employment.
- They reached age 65 while still employed and maintained Canadian tax residency while working abroad.
| ➢Documentation required includes proof of employment and proof of physical return to Canada (unless reaching 65 while still employed abroad).
➢Under specific conditions, spouses, dependents, and Canadians employed abroad by international organizations may also count time spent overseas as Canadian residency. |
It is worth noting that one’s work history does not impact eligibility for the Old Age Security (OAS) pension. Whether you have never worked or are currently employed, you should still be eligible to receive it.
Assuming none of the above scenarios apply, you may still qualify for the OAS pension, a pension from another country, or both if you have resided in a country with which Canada has a social security agreement or contributed to the social security system of a country with which Canada has such an agreement.
Read: Hidden Benefits From ODSP: How to Claim?
Am I eligible for the one time $300 payment?
Individuals born on or before June 30, 1947, and eligible for the OAS pension since or before June 2021 should receive the one-time $300 grant from ESDC (Employment and Social Development Canada). Additionally, seniors receiving the Guaranteed Income Supplement (GIS) will also receive an extra $200, bringing their total one-time benefit to $500.
Those who have submitted an application for OAS on or before May 31, 2022, but have not yet received approval will still receive the one-time payment, assuming their approval is granted retroactively to June 2021 or an earlier date. Unfortunately, anyone applying for OAS now is NOT ELIGIBLE for the one-time payment.
OAS + One Time $300 Payment Dates
The official Government of Canada schedule does not specify the exact time of day for payment distribution. The payment dates for eligible seniors are usually communicated through the official website of the Canada Revenue Agency (CRA) or Service Canada. Additionally, beneficiaries may receive notifications via mail or through their online CRA My Account.
The OAS pension is disbursed monthly, typically on the third business day following the end of the current month. However, in December, the payment is usually issued approximately one week earlier than usual.
Direct Deposit is the preferred method of payment though one can also opt to receive it by cheque. It is consistently processed shortly after midnight Pacific time, ensuring uniform payment timing for all beneficiaries, irrespective of their time zone.
As for the one-time $300 tax-free payout for those who haven’t received it yet, expect it to be disbursed right alongside the next OAS pension.
How to Receive the Payment?
Typically, enrollment in OAS is automatic, and one can expect to receive written notification by mail in the month following their 64th birthday.
Seniors eligible for the OAS pension or already receiving the benefits do not need to apply separately for the one-time $300 payment. It will be auto-processed by the government, and beneficiaries should receive this payment in their bank accounts via direct deposit.
However, beneficiaries are encouraged to ensure their personal information, including their address and banking details, is up to date with the relevant agencies to avoid any delays in receiving their entitlement.
| The Old Age Security payment is subject to taxation. Payment rates undergo regular reviews in January, April, July, and October to align with the cost of living, which, if the government deems to have risen, will increase accordingly but never decrease. |
Further Assistance
The Government of Canada’s website (canada.ca) provides further details regarding OAS and the one-time $300 payment for older seniors, including a FAQ section addressing common queries. Seniors and their caregivers can also reach out to Service Canada for personalized assistance and to ensure they receive all benefits for which they are eligible.