The Canadian government moved Tuesday to strip old age income benefits from federal inmates.

Human Resources Minister Diane Finley holds a press conference regarding an amendment to the Old Age Security Act at the National Press Theatre in Ottawa on Tuesday. (Sean Kilpatrick/Canadian Press)Human Resources Minister Diane Finley tabled legislation that would end Old Age Security and guaranteed income supplement benefits currently going to federal inmates over the age of 65 and who are in prison for two years or more.

Among those currently getting those benefits are convicted killer Clifford Olson, who is 70 and serving life in prison for the deaths of 11 children. Olson has been reported to be collecting more than $1,000 a month in benefits.

Finley said they acted after news that Olson was collecting the benefits was raised in a March 2010 Toronto Sun article.

"Canadians who work hard, who contribute to the system, who play by the rules deserve government benefits such as Old Age Security. It's wrong, and obviously unfair, that prisoners who break the rules receive the same entitlements."

"This is offensive and outrageous to the prime minister, to the government of Canada, and to Canadians right across the country," she told reporters in Ottawa. "Moreover, it is deeply insulting to the victims and to their families."

Finley said they are working with the provincial and territorial governments to also end benefits for inmates over 65 and incarcerated for more than 90 days at those levels.

Finley said the changes are expected to affect about 400 federal inmates, and could eventually affect another 600 inmates held at provincial and territorial level corrections centres.

She said the estimated savings from the change could amount to about $2 million per year at the federal level. That could increase to about $10 million annually with provincial and territorial inmates included.

The benefits could resume upon a prisoner's release, and Finley said spouses and common-law partners of inmates will continue to get the benefits on their own merits.

"We're not punishing them for the deeds of their spouse," she said.

11 life sentences

Olson killed 11 boys and girls in British Columbia before he was sentenced to life in prison in 1982. Olson, who has never shown remorse for his crimes, is serving 11 consecutive life sentences in a maximum security prison in Quebec.

His retirement benefit money has been put in trust.

He was also paid $100,000 by the RCMP to lead them to the bodies of his victims. That money was put in trust for his estranged wife and son.