OAS changes won’t affect those over 57

Any new retirement rules at least eight years away, finance minister says

OTTAWA— Finance Minister Jim Flaherty has good news for Canadians aged 57 and older — you won’t be hit by looming changes to Canada’s Old Age Security program.

Flaherty, 62, said Friday that changes under consideration won’t likely take effect for at least eight years, ensuring that those approaching retirement in the short-term won’t be affected.

Flaherty made the comment to reporters during a visit to Oshawa with local Conservative MP Colin Carrie, 49. He had been asked whether Canadians could expect the federal budget, due in March, would contain changes to the OAS program, as the government has been hinting in recent weeks.

“We cannot ignore the fact that we have an aging population in Canada and we want to ensure sustainability over the long term of our important social programs,” Flaherty said. “The timing of what we do will involve more than one budget and we will . . .announce some steps forward, but we certainly need to plan ahead.

“This is not for tomorrow morning. This is for 2020, 2025 so that people who are middle age and younger today, like Colin, not me, can be assured that they will have these social programs properly funded, fiscally responsible, that they’ll be there for them in the future,” he said.

Speculation has been rife about the government’s proposed action on OAS ever since Prime Minister Stephen Harper used a speech in Davos, Switzerland, last month to first warn that changes are coming to the retirement income program. He bluntly said that Canada’s aging demographics threatened the viability of such programs. One option would be to raise the age of eligibility to 67 from 65.

Flaherty’s comments on Friday mark the first time the government has put a potential time frame on the possible changes. However, an aide said later the minister was simply trying to make the point that any proposed changes won’t happen overnight. The Conservatives have faced stiff criticism from opposition MPS who question why Harper didn’t mention the proposed change in last spring’s election. And Liberals and New Democrats have been warning that any changes to Old Age Security — which pays on average $6,096 a year — could hurt poor seniors the hardest. “It is bad enough that the Prime Minister is prepared to hurt low income seniors by raising the OAS age, but why did he not tell them the truth about his plan during the election,” Liberal MP Scott Brison said Friday in question period, accusing the Tories of “faking a crisis.” But Diane Finley, the minister of human resources and skills development, said later in question period that without changes, Old Age Security is “not sustainable.” She said those collecting OAS now or nearing retirement will “not lose a penny’’ because of any changes but was offering no promises to younger Canadians. “We have a responsibility to Canadians to ensure the viability of the system for the future,” Finley said.