Bill C-261 OAS Full Pension Amount

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C-261 An Act to Amend the Old Age Security Act (Amount of Full Pension)

Bill Type: Private Member’s Bill

Bill Sponsor: Claude DeBellefeuille (Beauharnois—Salaberry—Soulanges—Huntingdon)

Status: 2nd Reading — placed in Order of Precedence March 19, 2026. This Bill hasn't passed yet.

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WHO GAINS POWER

  • No new ministerial or regulatory powers created — this is a straight dollar-amount amendment
  • Parliament sets the new pension floor directly in the Act, not by regulation

WHO LOSES POWER

  • No power is removed from any institution or office
  • The repeal of subsections 7(5) and 7.1(5) and (6) removes existing deferral calculation provisions — the practical effect is minor housekeeping

WHO GAINS MONEY

  • All OAS pensioners aged 65 and older get a 10% increase to the full monthly pension — from approximately $727 to $808.45
  • Low-income seniors on the Guaranteed Income Supplement (GIS) get a higher earnings exemption — from $5,000 to $6,500 — meaning they can earn more from work before their GIS is clawed back
  • Seniors who work part-time or are self-employed benefit most from the exemption increase

WHO LOSES MONEY

  • Federal government — increased OAS and GIS expenditure across all eligible pensioners
  • ⚠️ No funding source is identified in the Bill — the cost of the 10% increase and the expanded exemption is not offset by any revenue measure or fiscal note

THE CATCH

  • ⚠️ The pension amount is hardcoded at $808.45 as of July 2025 — if this Bill passes after that date, the base figure may already be out of sync with indexed amounts actually being paid
  • ⚠️ No funding source is identified — the Bill increases expenditure with no corresponding revenue measure or fiscal note
  • The exemption increase from $5,000 to $6,500 applies only to employment and self-employment income — investment income, rental income and pension income are not affected
  • Seniors already receiving the maximum GIS see no additional benefit from the exemption increase unless they are also working

Source: Bill C-261 — Parliament of Canada