Pensions & seniors
OAS recovery tax
A repayment mechanism that reduces OAS payments when your net income exceeds a yearly threshold.
Seniors with moderate retirement income may lose part or all of OAS through this recovery.
Commonly confused with
GIS clawback, both relate to income but use different rules.
The exact definition and rules can differ by program. Check the official rules for the benefit you are applying for.
Related terms
Pensions & seniors
Guaranteed Income Supplement (GIS)
A monthly non-taxable top-up for low-income seniors receiving OAS. Amount decreases as other income rises.
View termIncome-tested benefits
Clawback
A reduction in a benefit as your income rises above a threshold. You keep the benefit, but receive less.
View termPensions & seniors
Old Age Security (OAS)
A monthly pension for people 65 and older who meet residency requirements. It is not based on employment history.
View term