BACKGROUNDER
Newfoundland and Labrador Seniors' Benefit

• The Newfoundland and Labrador Seniors' Benefit will increase from $200 to $300 per year. This program was implemented in 1999 in recognition of the difficult financial circumstances of some of our older persons. The benefit is available to eligible seniors, age 65 and older, whether or not they are in receipt of a pension.

• The benefit will be $300 for seniors with family net income up to $14,000. Family net income includes such things as Old Age Security, Guaranteed Income Supplement, Canada Pension Plan, other pension income, RRSP income, and investment income. Previously, the benefit was $200 for seniors with family net income up to $12,000.
• The $300 benefit will be gradually phased-out as family net income rises from $14,000 to $20,000, reducing by five per cent of the amount of family net income in excess of $14,000. That is a reduction of $5 for each $100 increase in income.
• Individuals do not need to make a special application for the benefit. Eligibility and payment amounts will automatically be determined with the filing of income tax returns. The senior�s benefit is paid in October of each year, at the same time as the GST/HST Credit.
• The benefit complements various tax benefits for seniors. The Pension Income Credit provided in the income tax system reduces Newfoundland Personal Income Tax by up to $106 and the Age Credit reduces Newfoundland tax by up to $365.
• Approximately 28,000 individuals, 46 per cent of the total of 61,000 persons 65 and older in the province, will receive the Newfoundland and Labrador Seniors' Benefit, of which about 10,000 will receive the full amount. Of the 28,000 beneficiaries, approximately 19,000, or 68 per cent, are women.
• The benefit will cost approximately $7.3 million per year.

Media contact: Paula Dyke, Communications, (709) 729-0329.

2001 03 22                               3:50 p.m.