Old Age Security - Canadian Residency Requirement
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Old Age Security (OAS) is a government-funded and administered pension that provides monthly payments to eligible Canadians that are 65 years of age or older. Provided that the applicant-recipient has met the legal status requirement, they will also be required to satisfy the Canadian residency requirement to be legally entitled to receive Old Age Security pension payments.
The Canadian residency requirement looks at all periods of residence in Canada since age 18, which is distinct from being merely present in Canada while maintaining residential ties in another country. The position of the federal government on residency in relation to applying to the Old Age Security pension program is that:
• residence is the period of time when you ordinarily make Canada your home;
• if you are physically present in Canada, you are not necessarily a resident of Canada;
• you can be resident of only one country at a time, with your country of residence being the one with which you have the most significant residential ties;
• a temporary absence from Canada (i.e., holidays) does not normally interrupt your Canadian residence if you continue to keep up residential ties to Canada.
Furthermore, certain periods spent outside Canada can be counted as Canadian residence if you were employed or engaged outside of Canada, or you were the spouse / common-law partner or dependent (including mother, father, mother-in-law, father-in-law, brother, sister, and natural, adoptive and foster children) who accompanied a person abroad. In order to include these absences from Canada, specific conditions must be met:
• in most cases, you must return to Canada within six months of completing your (or your spouse/ common-law partner’s) employment, or attain age 65 while outside Canada;
• in some cases, you must also have maintained a permanent home in Canada for the entire period you were absent from Canada.
Eligible absences from Canada that may be counted as residence in Canada are tied to the function being performed by the principal family member that is employed or engaged outside of Canada, which can include:
• service with the Canadian Forces; as a member of the armed forces of any ally of Canada during any war or work in connection with the prosecution of any war;
• work outside Canada as an employee of the Government of Canada, of a provincial government or a municipal corporation;
• work outside Canada for a Canadian Embassy or Consulate;
• work for an International Charitable Organization or a non-profit Canadian agency;
• time spent abroad to attend school or university;
• missionary sent to work abroad with a religious group or organization;
• services in another country under a development or assistance program that is sponsored or operated in that country by the Government of Canada, a province or a non-profit Canadian agency;
• transport workers on trains, aircraft, ships or buses running between Canada and points outside Canada or other similar employment;
• work with the United Nations or one of its specialized agencies, the North Atlantic Treaty Organization, the Commonwealth Secretariat, the Organization of Economic Cooperation and Development, or the Organisation internationale de la Francophonie;
• work outside Canada as an employee of a Canadian firm or corporation.
As with most government administered programs, there is considerable complexity that can arise with individual circumstances that are not clear cut for government workers to determine and administer. In those circumstances, it is important that you delve into greater detail about the Old Age Security pension program, including the considerable amount of information and legislation provided by the federal government, together with speaking with knowledgeable professionals
If you are looking into Old Age Security, our law firm provides legal services of potentially significant value, including estate planning, wills and trusts, together with all too frequently overlooked employer payment obligations due to Canadian employees at the end of their employment. To learn more, contact our law firm today to schedule a confidential consultation at Chris@NeufeldLegal.com or 403-400-4092.