An 80-year-old single widow receives a maximum CPP benefit and a full OAS benefit. Her only other income is $5,000 from a modest company pension. Based on 2024 thresholds and assuming she is eligible for the maximum GIS, which of the following statements is most likely true regarding her Guaranteed Income Supplement (GIS)?

Question: An 80-year-old single widow receives a maximum CPP benefit and a full OAS benefit. Her only other income is $5,000 from a modest company pension. Based on 2024 thresholds and assuming she is eligible for the maximum GIS, which of the following statements is most likely true regarding her Guaranteed Income Supplement (GIS)?

Answer options:

• She will receive the maximum GIS benefit as her other income is very low. ✅ Her GIS benefit will be significantly reduced due to her CPP and company pension income.
• She will not qualify for GIS because she is already receiving full CPP and OAS.
• Her CPP and company pension income will be entirely disregarded for GIS calculation purposes.

Correct answer: Her GIS benefit will be significantly reduced due to her CPP and company pension income.

Explanation: GIS payments are reduced based on other sources of income, specifically 50 cents for every dollar of 'other' income (excluding OAS). Since she receives a maximum CPP benefit and a company pension, these amounts will significantly reduce, if not eliminate, her GIS entitlement, despite her overall modest income. The 'maximum GIS' is only for those with little to no other income.