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Decision
[1] The Claimant does not qualify to have his Guaranteed Income Supplement (GIS) entitlement for the payment period July 2019-June 2020 (the payment period) based on estimated 2019 income rather than 2018 actual income.
Overview
[2] The Minister received the Claimant’s Statement of Estimated Income after Retirement or Reduction in Pension Income Year 2019 on April 10, 2019Footnote 1. He requested his entitlement for GIS for the payment period be based on his estimated 2019 income. The Minister denied the Claimant’s request initially and on reconsideration. The Claimant appealed the reconsideration decision to the Social Security Tribunal (Tribunal).
[3] An applicant is eligible to have their GIS entitlement for a current payment period based on estimated income for the current year instead of actual income for the calendar year preceding the payment period if the applicant experienced a loss of income in the current year due to retirement from employmentFootnote 2, or cessation of or reduction in pension incomeFootnote 3. Pension income within the meaning of the Old Age Security Act (OASA) is defined in the OAS Regulations (OASR)Footnote 4. The definition of pension income does not include income from capital gains.
Issue
[4] Does the Claimant qualify to have his GIS entitlement for the payment period July 2019-June 2020 based on his estimated 2019 income?
Analysis
The Claimant does not qualify to have his GIS entitlement for the payment period July 2019-June 2020 based on his estimated 2019 income.
[5] GIS is an income tested benefit. The amount of GIS a Claimant is entitled to receive is adjusted annually to take into account the income of the Claimant in accordance with formulae set out in the OASANote de bas de page 5. The amount payable is dependent upon a Claimant’s income as defined in the OASA. If a Claimant is single, the Claimant’s GIS entitlement is determined based on the Claimant’s income for the calendar year preceding the payment periodNote de bas de page 6.
[6] For the purposes of determining the amount of GIS that may be paid to a Claimant, the income for a calendar year of the Claimant is the income of the Claimant for that year computed in accordance with the Income Tax ActNote de bas de page 7.
[7] The Claimant’s marital status is single. His 2018 total actual income as assessed by Canada Revenue Agency (CRA) was $134,503 Note de bas de page 8. The total included OAS pension, GIS, CPP pension, Worker’s Compensation Benefits (WCB), and capital gains of $107,516. The capital gains resulted from the sale of vacant property owned by the Claimant in 2018. He sold the property to pay part of an outstanding balance on a bank loan. He acknowledged the reduction of income in 2019, from that earned in 2018, was not due to retirement as he retired years prior to 2019, and was not due to a reduction or cessation of pension income. His CPP, OAS, and WCB actually increased in 2019 from the amounts received in 2018.
[8] The Claimant’s Member of Parliament sent a letter of support to the TribunalNote de bas de page 9. She requested I take into consideration the financial hardship the Claimant was/is experiencing, and allow him to receive GIS for the payment period July 2019-June 2020 based on estimated 2019 income, rather than his 2018 actual income. She noted the Claimant realizes the OASA does not permit him to have his GIS entitlement for the payment period based on estimated 2019 income, rather than 2018 actual income. The Claimant agreed with his MP’s statement of his position, namely that he does not meet the criteria to have his GIS entitlement for the payment period based on his estimated 2019 income. He also requested I take into consideration the financial hardship he was/is experiencing, the reason he sold the property that resulted in the capital gains and his resultant disentitlement to GIS for the payment period.
[9] I find the the Claimant did not retire in 2019. I find he did not suffer a loss of income in 2019 due to retirement from employment, or cessation of or reduction in pension income in 2019. I acknowledge the Claimant’s estimated 2019 income is substantially less than his 2018 actual income, mostly because his 2018 income included capital gains of some $107,516. Capital gains are not pension income. As the Claimant’s loss of income in 2019 is not due retirement in 2019, and is not as a result of the reduction or cessation of pension income, he does not qualify to have his GIS entitlement for the payment period July 2019-June 2020 based on his estimated 2019 income.
[10] The Tribunal is created by legislation and, as such, I only have the powers granted to it by its governing statute. I am required to interpret and apply the provisions set out in the OASA and OASR. I cannot use the principles of equity, or consider extenuating circumstances, including financial hardship, to allow the Claimant to have his GIS entitlement for the payment period July 2019-June 2020 based on estimated 2019 income.
Conclusion
[11] The appeal is dismissed.