OTTAWA—Human Resources and Social Development Canada today announced the latest benefit rates for Old Age Security (OAS).
As of October 1, 2006, the basic OAS pension, paid to people 65 years of age and over, will be $491.93 per month. This is an increase of 0.9 per cent over the previous quarter. Since 1973, all OAS benefits have been adjusted quarterly (in January, April, July and October). Any increases in OAS rates are based on changes in the average Consumer Price Index.
The maximum Guaranteed Income Supplement (GIS) and Allowance payments, which provide additional benefits to eligible low-income pensioners and their spouses or common-law partners, as well as to eligible survivors, will also increase by 0.9 per cent.
The OAS program is funded through general tax revenues and provides a basic minimum income for Canadian seniors. Old Age Security provided 4.3 million seniors with approximately $29 billion in 2005-2006.
The Canada Pension Plan (or the Quebec Pension Plan in Quebec) is funded through contributions by Canadian workers, their employers and the self-employed, as well as through earnings on investment of the Plan's funds. In addition to retirement benefits, the Plan provides disability benefits, death benefits, survivor benefits, and benefits for children.
Together, the CPP and the OAS program enhance the quality of life of Canada's seniors by providing a modest base on which to build additional income for retirement.
- 30 -
For more information (media only):
Media Relations OfficeHuman Resources and Social Development Canada819-994-5559
Web site: www.hrsdc.gc.ca
Backgrounder
Maximum Old Age Security benefit rates as of October 1, 2006
Type of Old Age Security benefit
Maximum monthly benefit rates
Oct. - Dec. 2006
Previous quarter
July - Sept. 2006
Basic Old Age Security pension
$491.93
$487.54
Guaranteed Income Supplement
.
.
Single
$602.91
$597.53
Spouse/Common-law partner of
.
.
a non-pensioner
$602.91
$597.53
a pensioner
$395.54
$392.01
an Allowance recipient
$395.54
$392.01
The Allowance
regular
survivor
$887.47
$981.81
$879.55
$973.05
