OTTAWA, December 22, 2006— Human Resources and Social Development Canada today announced the latest benefit rates for the Canada Pension Plan (CPP) and Old Age Security (OAS).
Canadians already receiving CPP benefits as of December 2006 will get an increase of 2.1 percent on January 1, 2007 . Canada Pension Plan benefits are adjusted once a year, in January. Increases are based on changes in the Consumer Price Index (CPI), the cost-of-living measure used by Statistics Canada, over a 12-month period.
OAS rates are based on the average Consumer Price Index and are adjusted quarterly (in January, April, July and October). As of January 1, 2007 , the basic OAS pension, paid to people 65 years of age and over, will remain unchanged at $491.93 per month. There has been no increase over the previous quarter, although over the past year the OAS benefit rates have increased by 2.5 percent overall.
The Guaranteed Income Supplement (GIS), the Allowance and the Allowance for the survivor will increase by $18 a month for single recipients and by $29 a month for couples, effective January 1, 2007 . This is the second of two identical increases intended to help address the needs of Canada ’s poorest seniors. The GIS and Allowance payments provide additional benefits to eligible low-income pensioners and their spouses or common-law partners as well as to eligible survivors.
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 2005-06.
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 also provides disability benefits, death benefits, survivor benefits, and benefits for children.
Together, the CPP and the OAS programs provide Canada ’s seniors with basic pension income in retirement.
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This news release is available in alternative formats upon request.
For more information (media only):
Media Relations Office
Human Resources and Social Development Canada
819-994-5559
Website: www.hrsdc.gc.ca
backgrounder
Maximum Canada Pension Plan benefit rates as of
January 1, 2007
Type of Canada Pension Plan Benefit
Maximum Benefit Rates for 2007
Retirement pension (at age 65)
$ 863.75
Disability pension
$ 1,053.77
Survivor’s pension (under age 65)
$ 482.30
Survivor’s pension (age 65 and over)
$ 518.25
Disabled contributor’s child benefits
Deceased contributor’s child benefits
$ 204.68
$ 204.68
Death benefit
$2,500.00
Combined pensions:
Survivor/Retirement (retire at age 65)
Survivor/Disability
$ 863.75
$ 1,053.77
Flat rate:
Survivor’s pension
Disability pension
$ 158.39
$405.96
backgrounder
Maximum OLD AGE SECURITY benefit rates as of January 1, 2007
Type of Old Age Security benefit
Maximum monthly benefit rates
January – March 2007
Previous quarter
October – December 2006
Basic Old Age Security pension
$491.93
$491.93
Guaranteed Income Supplement
Single
$620.91
$602.91
Spouse/Common-law partner of
a non-pensioner
$620.91
$602.91
a pensioner
$410.04
$395.54
an Allowance recipient
$410.04
$395.54
The Allowance
regular
survivor
$901.97
$999.81
$887.47
$981.81
This includes the GIS increase for 2007.
