Is there a relationship between the C/QPP and Old Age Security?
No. The Old Age Security (OAS)7 program predates the C/QPP and is the other main government transfer to senior families. Unlike C/QPP retirement benefits, OAS payments are based on residency rather than past contributions. Another difference is that OAS payments can be reduced (‘clawed back’) at higher income levels, whereas other sources of income do not affect C/QPP retirement benefits. As more senior families have become eligible and the average retirement benefit has increased, the C/QPP has become the larger source of income. In both 1981 and 2001, these two programs provided the lion’s share of government transfer payments to senior families, at 92% and 91% respectively (Table 4). In 1981, OAS was the more important, accounting for 62% of transfers compared with 30% from the C/QPP. Twenty years later, the C/QPP share had jumped to 43% while OAS had dropped to 48%. Even among senior families not receiving C/QPP benefits, OAS payments represented a declining proportion of both inco
