Pensioners urge Ottawa to quickly fix GIS error

Thousands of low- income seniors have been shortchanged, says group

The National Pensioners Federation says Ottawa must act swiftly to correct an error it made on Guaranteed Income Supplement payments that has shortchanged thousands of vulnerable low- income seniors.

Federation President Herb John said any delay in correcting the underpayments is “not acceptable.”

“The people that collect the Guaranteed Income Supplement are some of the most economically disadvantaged seniors in Canada,” he noted. “To qualify for that you have to have a very low annual income. ... These people can use that money.”

Federal officials told the Herald the error was discovered this spring after changes had been made to automate certain Guaranteed Income Supplement ( GIS) payment processes.

Employment and Social Development Canada began reviewing 140,000 GIS recipient accounts nationally to assess the scope of the error in May, but the provinces weren’t notified until last week.

John said he was surprised that national seniors organizations like his were not notified about the mistake. “I was at a meeting three weeks ago where I should have heard about this,” he said.

Critics have suggested the error was kept under wraps because of the ongoing federal election campaign.

Alberta was advised 23,400 seniors in the province may be in line to receive retroactive payments dating back to 2008.

The GIS is a monthly non- taxable maximum benefit of about $ 765 that is provided to low income Old Age Security recipients living in Canada.

Eligibility for GIS is reviewed every year in July, based on a client continuing to be under the income threshold for eligibility and continuing to reside in Canada. About 1.8 million seniors receive GIS payments.

Employment and Social Development Canada spokeswoman Julia Sullivan couldn’t provide any information about the amount of money involved in the error — on either an individual or national basis — but said Service Canada is committed to ensuring that seniors receive their full benefits.

“As soon as Service Canada became aware, it took immediate action to ensure seniors receive the benefits to which they are entitled,” she said in an email. “The processing of these accounts is being undertaken on a priority basis.

“Eligible seniors are being informed of the amount of money to which they are entitled, and when they should receive it, as their file is reviewed.”

Alberta was advised the initial review won’t be concluded until October and a second review won’t be completed until next March.

Sullivan said the errors are believed to have occurred as a result of system automation changes.

“Service Canada identified a small percentage of seniors who did not have their GIS benefits renewed automatically,” she said. “These seniors had previously applied for or received GIS benefits, but had not been eligible at some point due to changes in their personal circumstances, or because they did not file their income taxes.”

Edmonton senior Lindsay Stewart wonders if the error affected her application for GIS.

She thought she qualified for GIS when she turned 65 in June, but was rejected. Her Canada Pension Plan and Old Age Security payments won’t cover her next rent payment and she fears she will be forced out on the street.

Stewart, who said she suffers from multiple sclerosis, said her desperate situation has her in tears every day.

“It’s got to the point where I don’t know where to turn any more,” she said. “I’m banging my head against a brick wall.”

She said a big part of the problem is seniors are assessed annually to determine if they qualify for GIS, based on their previous year’s income. But she said last year she received Assured Income for the Severely Handicapped ( AISH), which was discontinued when she turned 65 two months ago.

Stewart said the forms seniors are required to fill out to qualify for GIS are a nightmare.

Accountant Marlene Little said the information provided to seniors to calculate whether they qualify for a full or partial GIS payment is “convoluted” and rife with legal jargon.

“I’m a professional accountant and I can’t figure out what they’re saying,” she said. “Basically, it’s advised that seniors just give the federal government all their information and they will calculate it for them.”

Little suggested that course of action lacks transparency and leaves seniors in the hands of a bureaucracy that has now just admitted making significant errors in thousands of files.

But Sullivan said the problem has been corrected. “The automated processes we have now put in place will help ensure that this situation does not happen again,” she said.

The people that collect the Guaranteed Income Supplement are some of the most economically disadvantaged seniors in Canada.