Delayed OAS is downloading on Ontario through ODSP
Harper has proposed delaying OAS until 67 or older. In addition to making poor serious poorer it will also massively increase Ontario's costs. Specifically one of the regulations that govern the ODSP system, O. Reg 222/92, includes s. 4.1.2. S.4 established what is known as the designated class, people who have automatic entitlement to ODSP without needing to be disabled. One group of people are seniors over 65 who do not qualify for OAS. This section was added to establish a minimum income for all poor seniors in Ontario. If OAS is delayed than ODSP recipients will stay on ODSP until the OAS starts. In addition all poor seniors with very small CPP benefits will qualify for an ODSP top up. Thus if a person's CPP benefit is $300 per month that person would be eligible for approximately $680 per month from ODSP. This is a massive increase and could be described as the special diet campaign on steroids. Any thought ?
sorry for the spelling problems in the last post. Subject: Re: Delays in OAS is Downloading onto Ontario through ODSP Better than letter ... Issue in bullet form O. Reg 222/92 is the general relation for the ODSPA S.4 establishes a designated class of people who are eligible for ODSP without filling in forms. They are automatically entitled if they are financially eligible for ODSP, ie poor S 4.1.2 explicitly established that anyone who is over 65and is not eligible for OAS is entitled to ODSP This was added to establish a minimum income floor for poor seniors. If OAS is delayed that two things happen. Any ODSP recipient who receives less than ODSP, currently approximately $980, is eligible for a monthly top up to $980. This is at least 75% of all ODSP recipients In addition every poor senior who has less than $980 in CPP is eligible for an ODSP top up. This is like the special diet on steroids The provision is in a regulation not statute thus Mcginty can change it through an order in council. This would amount to the single largest download from the Feds to Ontario in Canadian history. And then there is The Drumand report.....
I think you can pretty much count on the McGuinty government making an issue of this.
All provincial governments no matter their inclinations are reserved about jumping on something that is rally still in rumour status as far as the specifics go- which is especially true of raising the age. So I think its early to be wondering why the Ontario govt is not on this.
They wont like the financial implications, and there is political hay in this.
I think we are best remaining focused on the big issues.
Obviously that would change if the Ontario govt says nothing ever.
Longer term: when the increase in age elligibility actually comes- which may be years away- expect anyone except an NDP governemnt to say that following the feds age elligibility is a necessity.
I had not heard of ODSP. I dont live in Ontario. But still.
Sounds pretty progressive for North America. One group of seniors it covers is immigants who have not been in Canada 40 years- which is no small chunk of the population. OAP is reduced pro-rated for the years you have not had Landed Immigrant/Permanent Resident status and Citzenship.
Does the government make that well known?
Most of my clients are on ODSP, and I have a fair bit of communication with them. Yeah, that had not ocurred to me in listening to all this, but it clearly will be the provinces picking up the difference for anyone on a provencial disability pension. I have no idea how consistent the disability pension programmes are from one province to another, but it means a not insubstantial hit for Ontario.
No worries, McGuinty will just have to cut corporate taxes some more in order for Ontario to be more competitive with New Brunswick.
On a related note - excuse the French but it's à propos and I don't have time before work to translate:
http://www2.lactualite.com/jean-francois-lisee/youpi-la-dette-canadienne...
Youpi ! La dette canadienne va disparaître!Le Département des bonnes nouvelles est heureux de vous annoncer que la dette canadienne va fondre entièrement bien avant la fin du siècle, grâce à la gestion prudente de l’actuel premier ministre Stephen Harper;
Le Département des mauvaises nouvelles a le regret de vous annoncer que les provinces vont devoir déclarer faillite d’ici quelques décennies, mais pour des raisons étranges probablement liées à leur mauvaise gestion.
L’évolution comparée des deux dettes est illustrée dans ce graphique provenant du Bureau du directeur parlementaire du budget à Ottawa:
La cause de cet extraordinaire déséquilibre fiscal en préparation: la décision unilatérale d’Ottawa de réduire sa contribution aux dépenses de santé à compter de 2017.
Le rapport complet est en ligne ici.
Does the government make that well known?
I'm not in that age bracket yet, but based on what I and others have experienced, it seems like standard practice at ODSP is to say nothing about benefits and entitlements and hope that no one finds out about them.
@KenS "when the increase in age elligibility actually comes- which may be years away- expect anyone except an NDP governemnt to say that following the feds age elligibility is a necessity" You obviously have never heard of Darryl Dexter....
I didnt say you can count on the NDP. The rest, you can count on them saying they need to follow the feds.
The NDP- maybe.
So, who is Darrel Dexter?
ODSP is the Ontario provincial disability program. Ontario regulation 222/92 is one of it's governing regulations. S.4 of the reg.established what is called a proscribed class if people who have automatic entitlement to ODSP if they are poor enough. However s.4 .1.2 says ANYONE who is over 65 and NOT ELIGIBLE for OAS is eligible for ODSP as a member of the proscribed class. This means non disabled poor seniors are eligible for ODSP. This section was added to provide a minimum income for seniors. At the time the focus was stay at home mothers and new immigrants who did not qualify for CPP.
This protection has always been under used. It is in regulation thus it can be changed by an order in council.
Currently if everyone who could get these benefits applied for them I believe the province would explode. It would be like the special diet campaign on steroids.
We use the provisions the Province will likely try to repeal it, as they did with the special diet. If we don't use it people are much poorer. I believe that the provincial policy mandarins have no idea that this provision exists. I hope it will be possible to push Ontario to oppose OAS changes ...maybe this could help...any thoughts?
All Ontario has to do is change the regulation to say 67 instead of 65. Seniors who are 65 & 66 will be S.O.L., but that would be the feds' intention in raising the OAS age anyway.
And you got the Regulation number wrong. It's O. Reg 222/98.
I stand corrected. However you are exactly right about the order in council change. I believe the only way to prevent m
Mcginty et al from amending the reg.is to loudly tell them not to.
I stand corrected. However you are exactly right about the order in council change. I believe the only way to prevent m
Mcginty et al from amending the reg.is to loudly tell them not to.