Can pensioners apply for CERB? That’s the question that many retired Canadians are asking in the midst of the COVID-19 pandemic. With so many people facing financial difficulties due to job losses and reduced income, the Canadian Emergency Response Benefit (CERB) was introduced to provide financial assistance to those who are struggling to make ends meet. However, many retirees are wondering if they are eligible to apply for this program, and if so, how they can do it.
There’s been a lot of confusion around the rules of the CERB program, especially for senior citizens who are collecting pension benefits. Some people believe that if you are already receiving a pension, you are not able to apply for CERB. However, that is not necessarily the case. If you are a senior citizen who has lost your job, or has seen a significant reduction in income due to the pandemic, you may still be able to apply for CERB to help cover your expenses.
If you’re a pensioner who’s wondering whether you qualify for CERB, you’re not alone. Many Canadians are struggling to make sense of the program, and whether or not they’re eligible. In this article, we’ll take a closer look at the rules of the CERB program, and help you understand whether or not you can apply for this financial assistance. Whether you’re retired or not, it’s important to know your options when it comes to accessing financial support during these challenging times. With the right information, you can make informed decisions about your finances, and find the support you need to weather the storm.
Eligibility Requirements for CERB
As a pensioner, you may be wondering if you are eligible to apply for the Canada Emergency Response Benefit (CERB). In order to determine your eligibility, you need to understand the requirements set by the Canadian government. The following subsections list the eligibility requirements for CERB.
CERB Eligibility Requirements
- You must reside in Canada and be at least 15 years old.
- You must have stopped working due to COVID-19 or had your employment income reduced to zero.
- You must have had income of at least $5,000 in 2019 or in the 12 months prior to the date of your application.
- You must not have quit your job voluntarily.
- You must not have received any other income support from the government, such as EI benefits, since March 15, 2020.
Qualifying Periods
In addition to meeting the above eligibility requirements, you must also have had a loss of income during one of the following qualifying periods:
- March 15 to April 11, 2020
- April 12 to May 9, 2020
- May 10 to June 6, 2020
Income Replacement
The CERB provides income replacement of $2,000 per month for up to 4 months. If you are a pensioner and are already receiving pension income, you may still be eligible to receive the CERB if you meet the eligibility requirements. However, you cannot receive both your pension and the CERB for the same period of time.
Conclusion
| Requirement | Criteria |
|---|---|
| Age | At least 15 years old |
| Employment Status | Stopped working due to COVID-19 or had employment income reduced to zero |
| Income | Had income of at least $5,000 in 2019 or in the 12 months prior to the date of application |
| Voluntary Quit | Did not quit job voluntarily |
| Income Support | Did not receive any other income support from the government since March 15, 2020 |
If you meet all the eligibility requirements and had a loss of income during one of the qualifying periods, you may be eligible to apply for the CERB. It is important to note that you should only apply if you meet all the requirements and are in need of income replacement due to COVID-19.
Changes to CERB Program in Response to COVID-19
As the COVID-19 pandemic took hold of the economy, many Canadians found themselves out of work and struggling to make ends meet. To provide relief, the Canadian government introduced the Canada Emergency Response Benefit (CERB) in March of 2020. It was designed to be a temporary measure for those who stopped working due to COVID-19 or ran out of Employment Insurance (EI) benefits.
However, as the pandemic dragged on, the government made several changes to the CERB program in response to the evolving economic conditions and the needs of Canadians. These changes included:
- Expanding eligibility criteria: Initially, CERB was only available to those who had stopped working due to COVID-19. But in April, the eligibility criteria were expanded to include those who had their hours reduced by at least 50% due to the pandemic.
- Extending the duration of the benefit: The initial period of the CERB program was 16 weeks. But in June, the government extended it to 24 weeks to provide more support for those who were struggling to find work.
- Introducing new benefits: As the CERB program was set to expire, the government introduced new benefits to provide continued support to Canadians. These included the Canada Recovery Benefit (CRB) and the Canada Recovery Caregiving Benefit (CRCB).
CAN PENSIONERS APPLY FOR CERB?
Pensioners are generally not eligible for the CERB program as it is intended for those who have stopped working or have seen their income decrease as a result of COVID-19. Pension income is considered a form of income and does not qualify an individual for the benefit.
However, if a pensioner meets the eligibility criteria for the CERB program, they may be able to apply. For example, if a pensioner had a part-time job and lost it due to COVID-19, they would be eligible for the benefit as long as they meet all other criteria.
It’s important to note that if a pensioner does receive the CERB benefit, it will be considered taxable income and will need to be reported on their tax return for the year.
The Road Ahead
The government has stated that the CERB program is winding down, and the new benefits introduced in its place will provide continued support for those who still need it. However, with COVID-19 cases continuing to rise, it’s uncertain what the future holds for Canada’s economy and its workers.
| CERB Program | Eligibility Criteria | Amount |
|---|---|---|
| Canada Emergency Response Benefit (CERB) | Stopped working due to COVID-19 or ran out of EI benefits, earned a minimum of $5000 in the previous 12 months, and have not quit their job voluntarily | $500 per week (up to 24 weeks) |
| Canada Recovery Benefit (CRB) | Not eligible for EI, have stopped working or had their income reduced by at least 50% due to COVID-19, and looking for work | $500 per week (up to 26 weeks) |
| Canada Recovery Caregiving Benefit (CRCB) | Unable to work for at least 50% of the week because they are caring for a child under 12 years old or a family member who requires supervised care, due to COVID-19 | $500 per week (up to 26 weeks) |
As the situation continues to evolve, Canadians can look to the government for continued support and changes to the benefits program as needed.
Available financial support for pensioners during COVID-19
As COVID-19 continues to spread across the globe, pensioners have been hit hard. The pandemic has caused great financial instability, affecting almost everyone in Canada. Pensioners, however, may have specific financial concerns and may have heard of the Canadian Emergency Response Benefit (CERB). Here, we’ll explore whether pensioners can apply for CERB and what financial support options are available to them.
Can pensioners apply for CERB?
- Pensioners who are already receiving the Old Age Security (OAS) and/or Guaranteed Income Supplement (GIS) are not eligible for CERB.
- Those who only rely on their pension income and are not receiving government support may be eligible for CERB if they meet the requirements (they must have lost their job due to COVID-19).
- Pensioners who are still working and have lost their job due to COVID-19 may also be eligible for CERB.
Other financial support options for pensioners
Pensioners who are not eligible for CERB may still have other financial support options. Here are a few:
- The federal government announced a one-time payment of $300 in May 2020 for seniors eligible for the OAS and $200 for those eligible for the GIS.
- The Canada Emergency Wage Subsidy (CEWS) can help employers pay their employees, including pensioners. Pensioners who are still working may benefit from this program if their employer is eligible.
- The federal government is also providing additional support to the vulnerable population, including seniors. This support may include assistance with daily living expenses, such as groceries and medication.
Benefits available to OAS and GIS recipients
For OAS and GIS recipients, here are some benefits available that can help ease the financial strain during COVID-19:
| Benefit | Description |
|---|---|
| Canada Emergency Response Benefit (CERB) | N/A (not eligible) |
| Goods and services tax/harmonized sales tax (GST/HST) credit | The GST/HST credit is a tax-free quarterly payment that helps individuals and families with low or modest incomes offset all or part of the GST/HST they pay. |
| Canada Child Benefit (CCB) | The CCB is a tax-free monthly payment made to eligible families to help with the cost of raising children under the age of 18. |
| OAS pension | The OAS pension provides a monthly payment to individuals who are 65 or older and meet residency and other requirements. |
| GIS | The GIS provides a monthly payment to eligible seniors who have little or no other income. |
| Allowance for the Survivor | The Allowance for the Survivor is a benefit available to eligible individuals aged 60 to 64 who have a low income and are widowed or entitled to a survivor’s pension. |
As a pensioner, it’s essential to explore all available financial support options during this time of uncertainty. Whether it be through CERB, CEWS, or other government programs, pensioners may still find relief from financial strains caused by COVID-19.
Understanding Government Assistance Programs in Canada
As retirement age approaches, many Canadians become concerned about their financial stability. Fortunately, the Canadian government offers a range of assistance programs to help pensioners make ends meet. One such program is the Canada Emergency Response Benefit (CERB) which is currently being rolled out in response to the COVID-19 pandemic. However, many pensioners are left wondering whether they are eligible to apply for CERB. This article aims to provide an in-depth explanation of CERB and other government programs for pensioners.
Government Assistance Programs for Pensioners
- Old Age Security (OAS) – The OAS program provides a basic income to Canadian seniors aged 65 and over. The amount of income provided is based on individual’s residence and years of residency in Canada.
- Guaranteed Income Supplement (GIS) – The GIS program provides additional financial assistance to low-income seniors who receive the OAS pension. Eligibility for the GIS is based on annual income and marital status.
- Canada Pension Plan (CPP) – The CPP program provides a monthly retirement pension to eligible individuals who have contributed to the plan during their working years. The amount of pension paid is based on the individual’s work history and contributions to CPP.
CAN PENSIONERS APPLY FOR CERB?
As mentioned earlier, the CERB program was introduced in response to the COVID-19 pandemic to provide financial assistance to Canadians who have lost their job or are unable to work due to the pandemic. Individuals who meet the eligibility criteria can receive $2000 per month for up to 16 weeks.
Unfortunately, pensioners who are already receiving government assistance programs such as OAS, GIS, or CPP are not eligible for CERB. In addition, the CERB program is only available to those who have earned at least $5000 in the past 12 months and have lost their job or are unable to work due to COVID-19.
Summary
In summary, the Canadian government offers several assistance programs for pensioners such as Old Age Security, Guaranteed Income Supplement, and Canada Pension Plan. However, pensioners who are already receiving government assistance programs are not eligible for the Canada Emergency Response Benefit. If you are unsure about your eligibility for any of these programs, it is best to speak with a financial advisor or visit the Government of Canada’s website for more information.
| Program Name | Description | Eligibility |
|---|---|---|
| Old Age Security | Provides a basic income to Canadian seniors aged 65 and over | Canadian senior aged 65 and over, based on individual’s residence and years of residency in Canada |
| Guaranteed Income Supplement | Provides additional financial assistance to low-income seniors who receive the OAS pension | Low-income seniors who receive the OAS pension, eligibility based on annual income and marital status |
| Canada Pension Plan | Provides a monthly retirement pension to eligible individuals who have contributed to the plan during their working years | Eligibility based on individual’s work history and contributions to CPP |
Source: Government of Canada
Impact of CERB on Retirement Savings
For pensioners, the Canadian Emergency Response Benefit (CERB) may seem like a tempting financial lifeline in the midst of the COVID-19 pandemic, especially if retirement savings have been affected by the economic downturn.
However, it’s important for pensioners to understand the potential impact that receiving CERB may have on their retirement savings in the long run. Here are a few key considerations:
- Pension Clawbacks: Depending on the pension plan, receiving CERB may trigger a pension clawback. This means that the pensioner’s pension payment may be reduced or suspended due to the receipt of CERB. Pensioners should check with their pension plan administrator to understand the rules around CERB and pension clawbacks.
- TFSA and RRSP Contributions: Pensioners who are still able to contribute to their Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) may want to consider using any CERB payments to make contributions. This can help to offset any potential losses in retirement savings due to the economic downturn.
- Impact on Guaranteed Income Supplement (GIS): For pensioners who are eligible for the Guaranteed Income Supplement (GIS), receiving CERB may impact their GIS eligibility and amount. Pensioners are encouraged to speak with their financial advisor to understand how the receipt of CERB may impact their GIS.
Overall, while CERB can provide much-needed financial support during these uncertain times, pensioners should carefully consider the potential impact on their retirement savings before applying.
| Pros of Applying for CERB as a Pensioner | Cons of Applying for CERB as a Pensioner |
|---|---|
| + Provides Financial Support | – May Trigger Pension Clawbacks |
| + Can be used for TFSA and RRSP Contributions | – May impact GIS Eligibility and Amount |
Ultimately, as with any financial decision, it’s important to weigh the pros and cons and speak with a financial advisor before making a decision.
Alternatives to CERB for Pensioners
While the Canadian Emergency Response Benefit (CERB) has been a lifeline for many Canadians, it is not available to pensioners. However, there are alternative support programs that pensioners can still take advantage of. Here are some options:
- Guaranteed Income Supplement (GIS): This is a monthly non-taxable benefit for low-income seniors. To be eligible, you must already be receiving the Old Age Security Pension and have an income below a certain threshold. The amount of GIS you receive will depend on your income and marital status.
- Canada Pension Plan (CPP) and Quebec Pension Plan (QPP): Pensioners who have contributed to these plans during their working years are eligible to receive a retirement pension. If you are between the ages of 60 and 70, you can choose to receive it earlier for a reduced amount or wait until age 70 for an increased amount. There is also a CPP survivor’s pension for widowed spouses.
- Old Age Security (OAS): This is a monthly payment available to Canadians aged 65 and over who meet certain residency requirements. The amount of OAS you receive will depend on how long you have lived in Canada after the age of 18. There is also a Guaranteed Income Supplement (GIS) available for low-income seniors.
These programs can help supplement your income and provide some financial stability during retirement. However, it’s important to note that there may be some tax implications for receiving these benefits, so it’s best to consult with a financial advisor or tax professional to determine the best course of action for your individual situation.
Here’s a table summarizing some key details about these alternative programs:
| Program | Eligibility | Amount | Application Process |
|---|---|---|---|
| Guaranteed Income Supplement (GIS) | Low-income seniors receiving OAS | Varies based on income and marital status | Apply online or by mail |
| Canada Pension Plan (CPP) | Seniors who have contributed during working years | Varies based on contributions and age of retirement | Automatically enrolled or apply online or by mail |
| Old Age Security (OAS) | Canadian residents aged 65 and over | Varies based on residency and income | Automatically enrolled or apply online or by mail |
Ultimately, while CERB may not be an option for pensioners, there are still several support programs available to assist with financial stability during retirement. It’s important to explore all options and consult with a financial professional to determine the best approach for your unique situation.
How to apply for CERB as a pensioner
As a pensioner, you may be eligible for the Canada Emergency Response Benefit (CERB) if you have lost your source(s) of income due to COVID-19. Here’s what you need to know about applying:
- You must be at least 15 years old and a resident in Canada
- You must have earned at least $5,000 in the past year or in the 12 months prior to your application
- You must have stopped working due to COVID-19 or have had your hours reduced to the point where you’re earning less than $1,000 a month
Once you have determined that you are eligible for CERB, you can apply online or by phone:
- Online: Visit the Canada Revenue Agency (CRA) website, create a My Account if you don’t have one already, and then follow the prompts to apply for CERB
- Phone: Call the automated toll-free line at 1-800-959-2019 or 1-800-959-2041 and follow the prompts to apply for CERB
When you apply, you will need to have certain information handy:
- Your social insurance number (SIN)
- Your postal code
- Your banking information if you want to receive payments via direct deposit
- Your employment history for the past 12 months or since your last EI claim
After you’ve applied, you should receive a payment within 3-5 business days if you signed up for direct deposit or within 10 business days if you opted to receive a cheque in the mail. You will need to reapply every 4 weeks as long as you remain eligible for CERB.
FAQs about applying for CERB as a pensioner
Here are some frequently asked questions that pensioners might have about applying for CERB and how it impacts their pensions:
- Will CERB affect my pension payments?
- No, CERB does not affect your pension payments.
- Can I still apply for CERB if I am receiving a pension?
- Yes, you can still apply for CERB if you are receiving a pension (such as from CPP, OAS, or a private pension plan), as long as you meet the eligibility criteria.
- What happens if my pension or retirement income is over $1,000 a month?
- If your pension or retirement income is over $1,000 a month, you are not eligible for CERB. However, if your income drops below $1,000 due to COVID-19, you may be eligible to apply for CERB.
Conclusion
If you are a pensioner who has lost income due to COVID-19, you may be eligible for CERB. Applying is easy, as long as you have the necessary information ready, and payments are typically received within a few business days. Remember to reapply every 4 weeks as long as you remain eligible.
| Eligibility Criteria for CERB as a Pensioner | Application Methods for CERB | FAQs About CERB and Pensions |
|---|---|---|
| You must be at least 15 years old and a resident in Canada. You must have earned at least $5,000 in the past year or in the 12 months prior to your application. You must have stopped working due to COVID-19 or have had your hours reduced to the point where you’re earning less than $1,000 a month. | Online: Visit the CRA website and follow the prompts to apply for CERB. Phone: Call the automated toll-free line at 1-800-959-2019 or 1-800-959-2041 and follow the prompts to apply for CERB. | Will CERB affect my pension payments? No, CERB does not affect your pension payments. Can I still apply for CERB if I am receiving a pension? Yes, you can still apply for CERB if you are receiving a pension, as long as you meet the eligibility criteria. What happens if my pension or retirement income is over $1,000 a month? If your pension or retirement income is over $1,000 a month, you are not eligible for CERB. However, if your income drops below $1,000 due to COVID-19, you may be eligible to apply for CERB. |
Can Pensioners Apply for CERB? FAQs to Know
Q: Who is eligible for CERB?
A: Canadian workers who have lost their income due to COVID-19 are eligible for CERB. This includes part-time, seasonal, and self-employed individuals.
Q: Are pensioners eligible for CERB?
A: Pensioners who no longer work or have reduced hours due to COVID-19 are eligible for CERB. They must meet the same criteria as other CERB recipients.
Q: Can a pensioner receive CERB if they are receiving CPP or OAS?
A: Yes, a pensioner can receive CERB if they are also receiving CPP or OAS. There is no restriction on receiving multiple sources of income.
Q: Do pensioners need to pay back CERB?
A: Pensioners who are eligible for CERB and received payments do not need to pay back the amount if they meet the eligibility criteria.
Q: How long does CERB last for pensioners?
A: CERB lasts for up to 24 weeks for eligible pensioners. Afterward, they are encouraged to apply for other forms of financial assistance.
Q: Is there a deadline for pensioners to apply for CERB?
A: Yes, the deadline to apply for CERB is December 2nd, 2020. Pensioners are encouraged to apply as soon as possible to ensure they receive their payments.
Q: How can pensioners apply for CERB?
A: Pensioners can apply for CERB online through the Canada Revenue Agency (CRA) website or by calling the toll-free number provided by the CRA.
Thanks for Reading!
We hope this article has answered your questions about whether pensioners are eligible for CERB or not. Remember to apply before the deadline and ensure you meet the eligibility criteria. If you have further questions, feel free to visit our website for more information. Thanks for reading, and we hope to see you again soon!