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If your clients receive Old Age Security, federal investigators could contact them to ask about such things as marital status, unreported departures from Canada or unreported deaths.

Read: CRA may be watching clients’ social media

That’s because the federal government aims to eliminate fraud or mistakes from Old Age Security through a massive review of payments and recipients.

Read: How to minimize OAS clawback

In May, the government started testing a new, simplified application form for Old Age Security benefits to prevent misunderstandings about eligibility — specifically  questions about residency, where concerns have been raised about potential fraud.

The findings from the review and the application pilot project will feed into a larger strategy to modernize Old Age Security and improve payment accuracy.

The department overseeing the program, Employment and Social Development Canada, says payments are accurate almost 99% of the time. But mistakes even 1% of the time can mean hundreds of millions of dollars in mistaken payments.

Old Age Security benefits are expected to cost the federal treasury about $51.1 billion this fiscal year.

Also read:

The tax benefits of clients giving ‘never money’ while still alive

Why clients’ credit cards shouldn’t retire when they do

5,000 people retire each week. Are we ready?

 

Originally published on Advisor.ca
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