Question

Terry immigrated to Canada when she was 45 years old; Terry is now age 65. If the maximum monthly Old Age Security (OAS) is $590 for someone age 65, how much would Terry be eligible to receive per month?

$500

$395

$295

$590

Answer 1

The correct option is D "295"

To Get the full amount of the old age pension, A person should be of resident of canada for 40 years before applying to the Security plan otherwise A partial Old age security plan is available which is 1/40th of the full pension plan for each year residing in the canada.

Number of years she stayed = 65 - 45

= 20

Number of months in a year = 12

Monthly Limit = 595

Total Amount = 20*595*12

= 142800

So, Yearly Amount of Benefit = 142800 * (1/40)

= 3570

Monthly, It will be = 3570 /12

= 295

Option C is the correct answer