His dad's old age pension suddenly stopped coming, leaving couple at 'desperation time'

A London couple say they've been hit with a steep and unexpected monthly expense, after the federal government stopped an elder family member's old age security payments without explanation — payments which went toward expensive nursing home costs.

Francisco Moraga hasn't seen a monthly payment deposited into the bank account of his 88-year-old father, Hector, since Feb. 26. The amount, $1,881, a combination of Old Age Security (OAS) and the Guaranteed Income Supplement (GIS), helped offset the $2,315 monthly bill charged by the octogenarian's long-term care facility in London.

He and his wife Meaghin Moraga say they've had to withdraw savings to make up the difference, and are no closer to learning why the payments stopped.

The uncertainty has brought stress for the couple, who have two adult children and their own bills to pay. Unable to come up with a payment on time, the couple recently incurred a late charge with the nursing home, which must be paid with cash or money order, they said.

"We're taking all the stress because, my Dad ... I don't want to mention any of this to him, to worry him at his age and (with) his health problems," Francisco said. Born in Nicaragua, Francisco came to Canada with his Dad as a young teen.

Hector has lived in long-term care since November 2023, and is wheelchair-bound and in poor health. For eight to 10 months prior, he lived with the couple, but they couldn't provide him the care he needed.

"I always wanted to repay him for what he's done for us, so I made sure I looked after his stuff, until I run into this problem," Francisco said.

"We're at desperation time. We don't know what to do anymore."

OAS provides a monthly pension to Canadian citizens or legal residents 65 or older who have lived in Canada for at least 10 years since age 18. Many seniors rely on it and GIS for income.

Francisco says he and his father visited Service Canada on April 2, and filed paperwork so he could speak on his father's behalf as power of attorney. The couple were told they would hear back in a couple of weeks.

"For the first two months, they said they hadn't received the file ... About a month ago, he got confirmation they had received the file, but they still had to process the paperwork. This is where we've been sitting now," Meaghin said.

"They just keep saying to him, 'call back in two days.'"

Francisco's phone shows a dozen calls made to Service Canada since April 2, most recently on Tuesday. Most last more than 30 minutes, often on hold.

With the power of attorney document in limbo, the government can't provide the cause of the cessation. "If it's our fault, we're happy to provide whatever information is needed," Meaghin said.

Early on, a Service Canada official speculated an address change could be the issue, however Meaghin says a change of address was made in 2023 when Hector lived with them, and remains the same.

Contacted by CBC News, Employment and Social Development Canada wouldn't comment directly on the Moraga's case without their written consent, which has been submitted to the federal department.

Shael Eisen, a Toronto-based lawyer who has specialized in elder law for 25 years, says such delays aren't unusual, and something he has seen many times.

The government is extra cautious around releasing private information and adhering to privacy laws, and verifying power of attorney can take time as a result.

"It's not extraordinary something like this could take four or five months. It's a tragedy. It's just a giant bureaucracy, and they just don't know how to move fast," Eisen said.

"They want to pay out the money. It's like Las Vegas, they want people to win, otherwise you'll stop contributing. They're not evil, it's just a nightmare bureaucracy."

Sometimes, the problem is administrative, like direct deposit where "somebody somehow keyed in the wrong number," he said. Other times it may be income tax-related.

Those with net incomes exceeding certain amounts must repay part or all of their OAS, however Meaghin says Hector is low-income, and the couple filed his taxes with an accountant and received his notice of assessment.

The bureaucratic delays can be boiled down to a lack of resources and staff.

"If you're an 80-year-old person, and you paid your taxes your whole life, and you did nothing wrong, and all of a sudden there's a glitch, the consequences can be devastating," Eisen said.

"Unless you get somebody to speak up for you, or go (to Service Canada) and not leave until it gets sorted out, you've got a big problem."