{"id":411121,"date":"2026-01-15T14:53:10","date_gmt":"2026-01-15T14:53:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/411121\/"},"modified":"2026-01-15T14:53:10","modified_gmt":"2026-01-15T14:53:10","slug":"court-rules-against-senior-looking-to-reverse-oas-pension-auto-enrolment","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/411121\/","title":{"rendered":"Court rules against senior looking to reverse OAS pension auto-enrolment"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

In 2013, Service Canada began auto-enrolling Canadians who were 65 for OAS.JHVEPhoto\/iStockPhoto \/ Getty Images<\/p>\n

High-income seniors who want to defer their Old Age Security Pension (OAS) to avoid having benefits clawed back should inform the government of their decision. A recent court ruling shows what can happen when they don\u2019t.<\/p>\n

A taxpayer who waited two years to contact the federal government after Service Canada enrolled him automatically for OAS has lost his latest attempt, this one at the Federal Court of Appeal, to have his OAS payments stopped.<\/p>\n

In Abramowitz v Canada, a ruling released in November, the court upheld the lower court\u2019s 2024 decision that the government had acted reasonably in denying the taxpayer\u2019s reconsideration request.<\/p>\n

OAS auto-enrolment<\/p>\n

The OAS is a monthly pension payment available to eligible seniors aged 65 years and older. Above an annual income threshold ($93,454 in 2025), the benefit is clawed back.<\/p>\n

In 2013, Service Canada, acting on behalf of Employment and Social Development Canada, began auto-enrolling Canadians who were 65 for OAS. In most cases, Service Canada sends a letter one month after the taxpayer turns 64 to inform them that they\u2019ll be auto-enrolled the following year and that they should contact Service Canada if they wish to delay receiving OAS. <\/p>\n

A taxpayer who delays OAS receives an additional 0.6 per cent for every month after turning 65. If a taxpayer defers the OAS until 70, they receive an extra 36 per cent of the benefit. (There\u2019s no benefit in deferring OAS beyond 70.) <\/p>\n

A late request to reconsider<\/p>\n

In May, 2019, soon after turning 64, the taxpayer in Abramowitz v Canada received a letter from Service Canada notifying him he would be auto-enrolled for his OAS pension in June, 2020, unless he contacted Service Canada to defer.<\/p>\n

In May, 2020, he received another Service Canada letter informing him he would begin receiving his OAS pension that June. The letter said OAS amounts were taxable and that if income was above the recovery threshold amount, Service Canada could withhold a portion of the pension. It said the taxpayer had 90 days to request a reconsideration of the decision, which he didn\u2019t do.<\/p>\n

However, two years later, the taxpayer requested that the government reconsider the auto-enrolment. He said he didn\u2019t realize his entire OAS would be clawed back because he was still working and earning income. In addition, he said he couldn\u2019t go to a Service Canada office in 2020 because of the pandemic.<\/p>\n

The government denied his request because it was received after the 90-day deadline. It also said the taxpayer had missed the deadline to cancel a pension. Under OAS rules, a beneficiary can cancel a pension and repay the amount received up to six months after they\u2019ve started receiving payments. (They can later reapply for OAS.)<\/p>\n

After reviewing the taxpayer\u2019s file, the government said the taxpayer was provided information about delaying his pension and noted that an eService Canada phone system was available for those who couldn\u2019t visit a Service Canada office in person during the pandemic.<\/p>\n

The taxpayer appealed to the general division of the Social Security Tribunal, arguing in part that the government had taken too long \u2013 seven months \u2013 to issue its reconsideration decision. The general division dismissed the appeal. Then, the taxpayer sought leave to appeal to the tribunal\u2019s appeals division but was denied.<\/p>\n

In Federal Court<\/p>\n

In 2024, the taxpayer applied to the Federal Court of Canada (FCC) for a judicial review of the appeal division\u2019s decision not to consider the case. In court, the taxpayer also questioned the soundness and efficacy of the government\u2019s OAS auto-enrolment policy. <\/p>\n

The FCC judge said in her decision that it wasn\u2019t the court\u2019s role to review the policy, only the appeal division\u2019s decision. <\/p>\n

In denying the appeal, the judge noted the taxpayer had acknowledged he didn\u2019t review the Service Canada letters, and that the record showed he had been informed of the implications of receiving OAS at 65. <\/p>\n

\u201cThe fact that the [taxpayer] was very busy at work does not relieve him of the obligation to ensure he understood the consequences of receiving his pension at the age of 65 while still employed,\u201d the judge said. <\/p>\n

Ultimately, the taxpayer was responsible for his own retirement planning, she added. <\/p>\n

The judge did note that the Social Security Tribunal had mistakenly cited legislation governing the Canada Pension Plan (CPP) rather than the law governing the OAS when denying the taxpayer\u2019s reconsideration of his auto-enrolment.<\/p>\n

However, as the provisions governing CPP and OAS reconsiderations are similar, the mistake did not render the appeal division\u2019s decision unreasonable, the judge noted. <\/p>\n

The Federal Court of Appeal agreed last year, saying the mistaken citation did not cause it to lose confidence in the appeal division\u2019s decision. <\/p>\n

Double disadvantage<\/p>\n

Jason Heath, managing partner at Objective Financial Partners Inc. in Markham, Ont., says that a senior earning a very high income may be doubly disadvantaged if they start their OAS at 65. <\/p>\n

\u201cNot only would they lose the deferral benefit \u2013 they might also not even receive any OAS at all,\u201d because of the clawback, Mr. Heath says. <\/p>\n

The government\u2019s OAS auto-enrolment policy means that higher-earning seniors who receive a Service Canada letter must be proactive in deciding whether to defer OAS \u2013 and informing Service Canada if they do.<\/p>\n

\u201cThe government\u2019s not in the business of giving tax advice,\u201d Mr. Heath says.<\/p>\n

Canadians can apply for or delay their OAS payments<\/a> online using their My Service Canada account or by completing an \u201cApplication for the Old Age Security Pension and the Guaranteed Income Supplement\u201d form and either mailing it in or dropping it off at a Service Canada office.<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: In 2013, Service Canada began auto-enrolling Canadians who were 65 for OAS.JHVEPhoto\/iStockPhoto \/…\n","protected":false},"author":2,"featured_media":411122,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[1397,45,49,48,133,5266,2922,131,132],"class_list":{"0":"post-411121","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-appwebview","9":"tag-business","10":"tag-ca","11":"tag-canada","12":"tag-finance","13":"tag-globe-advisor","14":"tag-noastack","15":"tag-personal-finance","16":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/411121","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=411121"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/411121\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/411122"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=411121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=411121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=411121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}