Hon. Catherine S. Callbeck:

Honourable senators, I rise today to speak about an inequity in the Old Age Security program that I believe should be corrected.

Here is the problem: A low-income senior aged 60 to 64 can receive an allowance if their spouse is receiving the old age pension and the Guaranteed Income Supplement. A low-income senior aged 60 to 64 can receive the allowance for the survivor if they are widowed, but a low-income senior aged 60 to 64 who has never been married or is divorced or separated is not eligible to apply.

This policy does not seem fair, because some seniors between 60 and 64 are eligible for an allowance and some are not. We should not treat some differently from others, especially when low-income seniors need all the help they can get.

Let me explain these benefits. The allowance and the allowance for the survivor are two components of the Old Age Security Program.

The allowance was introduced in 1975. It is targeted to individuals 60 to 64 whose spouse is a recipient of the basic OAS pension, plus the Guaranteed Income Supplement. Together, the couple are considered "low income." The OAS allowance can be worth up to a maximum of $961.18 per month.

The allowance for the survivor was introduced in 1985. It is designated to help widows and widowers, 60 to 64, who have a low income. The current maximum allowance for the survivor monthly benefit is $1,065.45.

There is no doubt that we have made great strides with the introduction of these two benefits. They help countless individuals, aged 60 to 64, reach a level of income that makes them a bit more comfortable, but we should include those low-income seniors who are 60 to 64 and unattached. I believe these individuals are being treated unfairly and that the federal government should make changes to ensure that all low-income Canadians aged 60 to 64, who qualify, are eligible for the allowance.

We read over and over again that unattached seniors, especially women, are the most likely to be poor. In its first interim report the Special Senate Committee on Aging, which was chaired by Senator Carstairs, noted that single seniors over 65 are 10 times more likely to be living in poverty than seniors living in families — 16 per cent of single seniors compared to just 1.6 per cent living in families. The report also indicated that single senior women are twice as likely to have a low income as men.

A few months ago, new statistics on seniors and poverty were released by Campaign 2000. These figures show that the number of seniors over 65 living below the poverty line increased from 204,000 seniors to 250,000 between 2007 and 2008. The report also shows that women were the hardest hit. Senior women represented 80 per cent of the increase of those living below the poverty line.

While these figures are for seniors over the age of 65, we know that many Canadians face challenges in the years leading to official retirement. CARP, the national advocacy organization, noted in its pre-budget submission that older women can and do face retirement with less income. Their wages may be lower when or if they worked. They live longer than men, and therefore may outlive their financial savings. Many women spend some of their working years providing informal care-giving services that limit their ability to accrue sufficient retirement income.

CARP also notes that the problem is made even worse because the OAS allowance for people aged 60 to 64 does not include individuals who are single, divorced or separated. As such, the organization has recommended that the federal government do more to reduce poverty rates among older and retired Canadian women by providing low-income, single, divorced or separated women between the ages of 60 to 64 with supplementary income. The government could easily implement this recommendation by expanding the OAS allowance for all low-income, unattached seniors.

CARP is not the only national organization that raises this issue. The Canadian Association of Social Workers included the following in its submission to the federal government:

Since the CPP retirement pension is available at age 60, it would make sense to eliminate the marital status limitation in the Allowance of the Old Age Security system and make benefits available to all low-income persons aged 60 to 64, regardless of marital status.

I agree with the Canadian Association of Social Workers. It is unacceptable that the federal government is excluding one group of people for much-needed assistance based on marital status. This policy creates two classes of senior. It penalizes those who have never married or who have been divorced or separated.

All low-income individuals in the age group 60 to 64, regardless of marital status, should be eligible to receive this added income. I urge the federal government to expand the criteria so that all low-income people aged 60 to 64 are treated fairly.

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