HOUSEAT2NDREADING

Private Member's Bill

45th Parliament · Session 1

Bill C-261: An Act to amend the Old Age Security Act (amount of full pension)

Introduced

February 9, 2026

Current Stage

HouseAt2ndReading

Last Updated

March 19, 2026

Sponsor

Claude DeBellefeuille

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Bill C-261

Thu Mar 19 2026

An Act to amend the Old Age Security Act (amount of full pension)

Impact Rating

4/5

Short Summary

This bill increases the Old Age Security pension by 10 percent for all seniors over 65 and allows low-income working seniors to keep more of their employment earnings.

Old Age Security

Seniors

Pensions

Cost of Living

Economy

Detailed Analysis

This bill amends the Old Age Security Act to increase the base Old Age Security pension by 10 percent for all seniors aged 65 and older. Previously, the government only provided this 10 percent increase to seniors aged 75 and older. The bill also helps low-income seniors who choose to work by allowing them to earn up to $6,500 a year from employment without it reducing their Guaranteed Income Supplement payments. Overall, the bill aims to provide more financial support to seniors and eliminate the two-tiered pension system based on age.

Why does this bill exist?

Origin (Platform Promise)

This bill is a direct response to long-standing demands from seniors advocacy groups and the Bloc Quebecois to reverse the government's 2021 decision that created a two-tiered pension system.

Key Points

Increases the base Old Age Security monthly pension by 10 percent for all eligible seniors aged 65 and older.
Eliminates the two-tiered pension system that currently gives higher payments only to seniors aged 75 and older.
Sets the new full monthly Old Age Security pension amount to $808.45 starting in July 2025.
Increases the Guaranteed Income Supplement employment income exemption from $5,000 to $6,500, allowing working seniors to keep more of their benefits.

Impact By Group

Seniors aged 65 to 74

(Rights Expanded)

Will receive a 10 percent increase in their basic monthly Old Age Security payments, leveling them with seniors aged 75 and older.

Low-income working seniors

(Rights Expanded)

Will be able to earn up to $6,500 a year from working without losing any of their Guaranteed Income Supplement benefits.

Working-age taxpayers

(More Expensive)

Will indirectly bear the tax burden of funding a multi-billion dollar permanent expansion to federal pension payouts.

Provincial Impact

None (Purely Federal) Interaction

The Old Age Security and Guaranteed Income Supplement systems are strictly federal programs. Provinces will not need to change their laws, though they may see indirect economic benefits from seniors having more disposable income.

Benefits & Pros

Provides much-needed financial relief to seniors aged 65 to 74 who are struggling with the rising cost of living.

Encourages low-income seniors to remain in the workforce by protecting more of their Guaranteed Income Supplement from being clawed back.

Eliminates what many critics saw as an unfair system that treated younger seniors worse than older seniors.

Beneficiaries

Seniors aged 65 to 74

Low-income seniors who continue to work

Risks & Cons

Will cost the federal government billions of dollars annually to permanently increase the pension for all seniors over 65.

The increase applies to all seniors regardless of their wealth, meaning tax dollars will go to high-income seniors as well.

May increase the overall tax burden on younger working Canadians to fund the expanded pension system.

Affected Groups

Federal treasury

Younger working-age taxpayers

Before & After

Currently, seniors aged 75 and older receive a 10 percent higher Old Age Security pension than seniors aged 65 to 74, and working seniors start losing their supplement benefits after earning $5,000. Under this bill, all seniors over 65 would receive the higher pension amount, and working seniors could earn up to $6,500 before their benefits are reduced.

Real World Scenario

Currently: A 68-year-old senior receives a standard Old Age Security payment, which is 10 percent less than what their 76-year-old neighbor gets. Under this Bill: The 68-year-old would see their monthly pension increased by 10 percent to match the 76-year-old, eliminating the age gap.

Frequently Asked Questions

Will my Old Age Security payments go up?

I receive the Guaranteed Income Supplement and work part-time. How does this help me?

When would this change happen?

Sponsor

Claude DeBellefeuille

Member of Parliament

House of Commons

First reading

Completed on February 9, 2026

Second reading

Not yet started

Consideration in committee

Not yet started

Report stage

Not yet started

Third reading

Not yet started

Senate

First reading

Not yet started

Second reading

Not yet started

Third reading

Not yet started

Abuse Potential

Because this bill dictates a fixed, automatic payout to a demographic group, the risk of bureaucratic abuse or government overreach is virtually nonexistent. The language is highly specific and relies on existing mathematical formulas within the Old Age Security Act. The primary risk is not abuse of power, but fiscal strain on the federal government, as expanding the pension entitlement permanently commits future governments to billions of dollars in mandatory spending without introducing a funding mechanism.

Financial Impact

Creates a massive direct cost to the federal government by permanently increasing Old Age Security payouts for millions of seniors and raising the Guaranteed Income Supplement exemption limit.

Implementation Risk

The technological and administrative risk is low, as Service Canada already handles these pension adjustments routinely. The primary risk is purely fiscal, as the government must find the billions of dollars needed to fund the mandate.

Broad Economic Impact

Direct Cost/Benefit. Delivers a direct financial benefit to seniors while imposing a significant, permanent financial cost on the federal government.

Everyday Life

High impact. Millions of seniors between the ages of 65 and 74 will receive a noticeable increase in their monthly federal pension.

Admin Burden

Automatic. Seniors will not need to apply for the increase as it will be adjusted automatically by Service Canada.

Timeline

Immediate upon Royal Assent, with payment changes scheduled for July 2025.

Bill Text Versions

1 Version

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Summary

This enactment amends the Old Age Security Act to increase the amount of the full pension to which all pensioners aged 65 or older are entitled by 10% and to raise the exemption for a person’s employment income or self-employed earnings that is taken into account in determining the amount of the guaranteed income supplement from $5,000 to $6,500.

Full Text

R.S., c. O- 9 Old Age Security Act 1 Paragraph (b.1) of the definition income in section 2 of the Old Age Security Act is replaced by the following: (b.1) for the purpose of determining benefits payable in respect of any month after June 2025 , there shall be deducted from a person’s combined amount — which is equal to the aggregate of the person’s income from office or employment for the year, as reduced in accordance with paragraph (a), and the person’s self- employment earnings for the year, as reduced in accordance with paragraph (b), if those reduced self- employment earnings are greater than zero — an amount that is equal to the aggregate of (i) the lesser of $6,500 and the combined amount, and (ii) if the combined amount is greater than $6,500 , the lesser of $6,500 and half of the amount by which the combined amount exceeds $6,500 , 2 (1) Subsection 7(1) of the Act is replaced by the following: Basic amount of full pension (1) The amount of the full monthly pension that may be paid to any person for a month in the payment quarter commencing on July 1, 2025 is eight hundred and eight dollars and fourty-five cents. (2) Subsection 7(5) of the Act is repealed. 3 (1) Subsection 7.1(2) of the Act is replaced by the following: Voluntary deferral — partial monthly pension (2) If a person applies for their pension after they become qualified to receive a partial monthly pension, the amount of that pension, as it is calculated in accordance with subsection 3(3), at the time that they become qualified for that pension, is increased by 0.6% for each month in the period that begins in the month after that time and that ends in the month in which the person’s application is approved. (2) Subsections 7.1(5) and (6) of the Act are repealed. 4 The description of B in paragraph 12(6)(b) of the Act is replaced by the following: B is the product (i) obtained by multiplying the amount of the full monthly pension that might have been paid to a pensioner for any month by the applicant’s special qualifying factor for the month, and (ii) rounded, if that product is not a multiple of four dollars, to the next higher multiple of four dollars; and 5 The definition pension equivalent in subsection 22(1) of the Act is replaced by the following: pension equivalent means, in respect of any month in a payment quarter, the amount of the full monthly pension payable for that month under section 7; ( valeur de la pension )

Version History

February 17, 2026 at 04:18 PM

Doc ID: 13896618