Limits on OAS Benefits for Sponsored Immigrants

Summary#

The government has set October 1, 2025 as the day Division 27 of the Economic Action Plan 2014 Act, No. 1 takes effect. That change brings into force amendments to the Old Age Security Act that limit certain income-tested OAS benefits for people who are under a sponsorship agreement.

What it does#

• Brings into force amendments to the Old Age Security Act that stop payment of OAS income-tested benefits to sponsored immigrants for the full length of their sponsorship agreement.
• The affected income-tested benefits are the Guaranteed Income Supplement (GIS), the Allowance, and the Allowance for the Survivor.
• Keeps the regular OAS pension rules unchanged — sponsored people who meet the residence test can still get the OAS pension.
• Keeps existing protections for cases where a sponsorship breaks down (for example, if a sponsor dies, is imprisoned for more than six months, is convicted of a relevant crime, or becomes bankrupt).
• Adds transitional rules so some sponsored people who were already eligible for income-tested benefits before October 1, 2025 may still receive them even if their sponsorship has not expired.

Who's affected#

• People who arrived in Canada under a sponsorship agreement (for example under the parents/grandparents program) and who remain under that sponsorship.
• Sponsors, because they remain financially responsible for the sponsored person while the sponsorship lasts.
• Older sponsored newcomers who might otherwise qualify for low-income supports from the OAS system (the GIS and allowances).
• Federal departments that run and check benefits, including Employment and Social Development Canada and Immigration, Refugees and Citizenship Canada.

Note: The change is mainly linked to the length of sponsorship agreements. These were typically 10 years in the past but for many parent/grandparent sponsorships the agreement was extended to 20 years in 2014, and people under those longer agreements began arriving around 2016.

Why it matters#

• Low-income older immigrants who are still under a sponsorship agreement may have to wait longer to get the GIS or allowances, even if they meet other program rules.
• Sponsors must continue to provide for the basic needs of sponsored relatives while the agreement is in force; the rule reinforces that responsibility.
• The transitional protections mean some people already eligible before October 1, 2025 will not suddenly lose benefits, but newer applicants who are still sponsored will be affected.