OSPC: Retirement Income Sources

1. Public Income Programs and Public Pensions

a. PUBLIC INCOME PROGRAMS - paid out of federal government general tax revenue

The Old Age Security (OAS) and Guaranteed Income Supplement (GIS) programs provide a basic minimum income guarantee for seniors. Funds for these programs come from federal government revenues. They are administered by a federal government department; Human Resources and Social Development Canada.

Benefits

  • Old Age Security (OAS) provides a basic pension, as a monthly payment, to people who are 65 years of age and over and meet residency requirements.
  • Guaranteed Income Supplement (GIS) is a family income-tested benefit provided to low-income OAS pensioners.

b. PUBLIC PENSIONS - funded by contributions by employers and employees

The Canada Pension Plan (CPP) and the Quebec Pension Plan (QPP) are mandatory, publicly-administered, defined benefit pension plans. These plans are funded by employer and employee contributions. They provide a basic level of earnings replacement for all Canadian workers.

The Canada Pension Plan (CPP) is jointly managed by the federal and provincial governments (except Quebec). The CPP operates in every province and territory, except Quebec, which has its own similar pension program. The Quebec Pension Plan (QPP) is administered by the Régie des rentes du Québec.

Benefits

  • The Canada Pension Plan (CPP) pays a monthly retirement pension to people who have worked and contributed to the CPP. The CPP acts as an insurance plan and provides survivor and disability benefits for those who qualify, It also pays a lump-sum benefit when the contributor dies. The employer deducts employee contributions from your pay cheque and makes an equal employer contribution. The amount of the CPP benefit you are get depends on how much and for how long you paid into CPP.

    Information

    For details on public pension plans go to the federal government website at www.hrsdc.gc.ca or call:

    1 800 277-9914 (English)
    1 800 277-9915 (French)
    1 800 255-4786 (TTY)

    For details on public pension plan for Quebec go to www.rrq.gouv.qc.ca/en/programmes/regime_rentes/ or call:

    1 800 463-5185
    1 800 603-3540 (TTY)

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