Common reasons why the pension amount is reduced?

Once a pensioner qualified for their OAS benefit, the amount paid under OAS title will not be reduced unless there was a recalculation occurred to the pensioner’s file.

When the pensioners noticed their OAS benefit payment reduced when checking their bank statement, it was most likely due to the amount paid under GIS was either changed or stopped.

GIS is a supplementary benefits that paid on top of the OAS benefit. Since it’s under OAS program, both benefits were paid under one payment. Therefore when pensioners check their pension payment, they will only see two direct deposits. One under CPP and another one under OAS title. 

GIS/ALW payment could be reduced or stopped for any of the following reasons

• you did not file your income tax return before April 30 of each year
• you did not provide your previous year’s tax information (e.g. T1 General). In the case of a couple, your income plus the income of your spouse/common-law partner) for the previous year
• you left Canada for more than 6 consecutive months, learn more
• Service Canada integrity office is investigating your file and put a pause on your payment
• you did not respond to a letter that required your signature
• your income (or in the case of a couple, your income plus the income of your spouse/common-law partner) is higher than what is allowed to receive the benefit
• you are in a federal prison for a sentence of 2 years or longer
• you die (it is important that someone notify us about your death to avoid overpayment)

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