is an old age security retroactive lump sum payment eligible to use on the T1198 form?

Answer

No, sorry.  The T1198 can only be used by the person/company who makes the retroactive payment so it is only for payroll type items.  If a person receives retroactive CPP payments, Canada Revenue Agency will automatically do the required tax calculation as if it had been received in the prior year.  There is no such provision for Old Age Security payments.  They do not qualify as a pension payment under section 120.31 of the Income Tax Act.
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