Order Fixing October 1, 2025 as the Day on Which Division 27 of the Economic Action Plan 2014 Act, No. 1 Comes into Force: SI/2025-21
Canada Gazette, Part II, Volume 159, Number 6
Registration
SI/2025-21 March 12, 2025
ECONOMIC ACTION PLAN 2014 ACT, NO. 1
Order Fixing October 1, 2025 as the Day on Which Division 27 of the Economic Action Plan 2014 Act, No. 1 Comes into Force
P.C. 2025-173 February 25, 2025
Her Excellency the Governor General in Council, on the recommendation of the Minister of State (Seniors), under section 374 of the Economic Action Plan 2014 Act, No. 1, chapter 20 of the Statutes of Canada, 2014, fixes October 1, 2025 as the day on which Division 27 of that Act comes into force.
EXPLANATORY NOTE
(This note is not part of the Order.)
Proposal
The Order fixes October 1, 2025, as the day on which Division 27 of the Economic Action Plan 2014 Act, No. 1 comes into force, pursuant to section 374 of that Act. The provisions amend the Old Age Security Act (OAS Act).
Objective
The objective of this Order is to bring into force amendments to the OAS Act that limit the payment of income-tested benefits to sponsored immigrants during the entire length of their sponsorship period.
The Order will also bring into force transitional provisions that will protect the benefits of sponsored individuals who were already eligible for such benefits prior to the coming into force of these amendments.
Background
Benefits available under the Old Age Security (OAS) program include the OAS pension, which is paid to all persons aged 65 or over who meet the residence and legal status requirements, as well as income-tested benefits designed to address the immediate financial needs of low-income older Canadians. The OAS income-tested benefits are the Guaranteed Income Supplement (GIS), for low-income seniors, the Allowance, for low-income Canadians aged 60 to 64 who are the spouses or common-law partners of GIS recipients, and the Allowance for the Survivor, for low-income Canadians aged 60 to 64 who are widows or widowers.
Since 1996, the OAS Act has contained a provision which prohibits the payment of OAS income-tested benefits to sponsored immigrants with less than 10 years of residence in Canada. This reflects the fact that sponsors have committed to meet the financial needs of their sponsored family members for the duration of their sponsorship period. For many years, this 10-year rule was aligned with the sponsorship period of the Immigration, Refugees and Citizenship Canada (IRCC) Parent/Grandparent sponsorship program.
Under the IRCC Parent/Grandparent sponsorship program, Canadian citizens and permanent residents who are at least 18 years of age may sponsor their parents or grandparents and their accompanying family members to become permanent residents. Sponsors sign a sponsorship agreement wherein they commit to provide the basic needs of the sponsored person(s), such as food, clothing and shelter for the entire length of their sponsorship undertaking.
Most individuals arriving in Canada under Parent/Grandparent agreements were subject to a 10-year sponsorship agreement which generally expired at the same time they attained 10 years of residence in Canada, meaning that they would then meet the requirements under the OAS program and become entitled to income-tested benefits after that period.
In January 2014, changes were made to the Immigration and Refugee Protection Regulations (IRPR), which increased the length of the sponsorship period under the Parent/Grandparent sponsorship program from 10 to 20 years in all provinces except Quebec (which retained the 10-year duration).
As a result, in 2014, the OAS Act was amended to align the OAS program with the changes to the length of the sponsorship agreement under the IRPR. The amendments limit the GIS and the allowances for the entire length of the sponsorship agreement, instead of only 10 years. These changes ensure that sponsors remain financially responsible for their sponsored individuals.
Implications
Upon coming into force of these amendments, individuals who are subject to a sponsorship agreement under the Immigration and Refugee Protection Act, will not be eligible to receive OAS income-tested benefits, i.e. the GIS, the Allowance or the Allowance for the Survivor, for the entire period of their sponsorship agreement, regardless of how many years they have resided in Canada.
However, under the transitional provisions, individuals under a 10-year Parent/Grandparent sponsorship agreement who meet the minimum residence requirement but have not yet applied for OAS benefits or have a pending application prior to October 1, 2025, may be entitled to the benefit even if their sponsorship agreement has not yet expired.
Eligibility requirements for the OAS pension remain unchanged. Sponsored immigrants over 65 years of age will still be eligible to apply for, and receive, the OAS pension once they meet the 10-year residence requirement. Additionally, a sponsored individual may be entitled to income-tested benefits once their sponsorship agreement expires.
The current protections under the OAS Act for sponsored individuals in cases of sponsorship breakdown will remain. These protections ensure that, if a sponsor passes away, is convicted of a criminal offence relating to the sponsored person, is incarcerated for more than six months or becomes bankrupt, the sponsored person can apply for, and receive, an OAS income-tested benefit.
Individuals with 20-year sponsorship periods began landing in Canada in 2016. This means that the first cohort of individuals would have become eligible for OAS income-tested benefits in 2026, when they will have attained 10 years of residence in Canada. Based on this timeline, Employment and Social Development Canada has been working towards advancing the necessary implementation supports such as developing an information sharing mechanism with IRCC.
Under the OAS program, the GIS and the allowances are targeted to older Canadians most in need. These income-tested benefits are intended to provide a basic level of income protection to help with their immediate necessities. Under the sponsorship agreements, sponsors sign an agreement where they commit to provide for the basic needs of the sponsored person, such as food, clothing and shelter. The amendments reflect the intent that OAS income-tested benefits should not be paid to someone whose financial needs are covered by a sponsor.
Consultation
The amendments to the OAS Act were included in the Economic Action Plan 2014 Act, No. 1, and were discussed at the House of Commons Standing Committee on Finance, as well as at the Senate Standing Committee on National Finance in 2014. The amendments received some negative comments during the legislative debates in the House of Commons and the Senate, particularly in regards to the effect it would have on immigrants. To address this critique, the rationale provided was that the purpose of the amendments was to be consistent with the increase to the sponsorship period under the IRPR. In line with the conditions of the sponsorship agreement, it is the responsibility of the sponsor to support the individual they are sponsoring while the agreement is valid. The Act received royal assent on June 19, 2014.
No public consultations were conducted on the proposal because the amendments to the OAS Act were debated and approved in Parliament during the legislative process. The review, public discourse, and scrutiny by elected representatives served as an alternative mechanism for broader public consultation.
Contact
Kevin Wagdin
Director
Old Age Security Policy and Legislation Division
Income Security and Social Development Branch
Employment and Social Development Canada
140 Promenade du Portage, Phase IV, 8th Floor
Gatineau, Quebec
K1A 0J9
Telephone: 613‑858‑9247
Email: kevin.wagdin@hrsdc-rhdcc.gc.ca