Ottawa, Ontario, March 16, 2012—Human Resources and Skills Development Canada today announced the quarterly benefit rates for Old Age Security (OAS) for April to June 2012.
As of April 1, 2012, the basic OAS pension benefit paid to people 65 years of age and older will remain unchanged at $540.12 per month from April 1 to June 30, 2012. Payments under the Guaranteed Income Supplement (GIS), the Allowance and the Allowance for the Survivor will also remain unchanged.
The OAS program consists of the basic pension, the GIS and the Allowances. The GIS and the Allowances provide additional benefits to eligible low-income pensioners and their spouses or common‑law partners, as well as to eligible survivors. OAS benefit rates are reviewed quarterly (in January, April, July and October) and revised as required to reflect increases in the cost of living as measured by the Consumer Price Index (CPI) set by Statistics Canada.
The last time the OAS rates increased was in January 2012, when benefits were raised by 0.4 percent in response to an increase in the CPI. Since then, the CPI has remained the same.
If the CPI surpasses its January 2012 level in the future, OAS rates will go up again; however, if the CPI goes down, as has occurred in the past, OAS benefits will remain the same. The Old Age Security Act guarantees that OAS benefits do not go down, even when there is a decrease in the CPI.
Since July 1, 2011, seniors with little or no income also receive a GIS top-up benefit. This quarter, that amount is $604.80 per year for single seniors and $846.72 per year for couples. This top-up is included in the GIS rate.
The OAS program is funded through general tax revenues and enhances the quality of life of Canadian seniors by providing a modest base upon which to build additional income for retirement. In 2010−2011, it provided 4.9 million seniors with $35.7 billion in benefits.
For further information, please consult the Human Resources and Skills Development Canada website at www.hrsdc.gc.ca.
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This news release is available in alternative formats on request.
For further information (media only):
Alyson Queen
Press Secretary
Office of Minister Finley
819-994-2482
Media Relations Office
Human Resources and Skills Development Canada
819-994-5559
MAXIMUM OLD AGE SECURITY BENEFIT RATES
AS OF APRIL 1, 2012
* The GIS amounts listed above include the Guaranteed Income Supplement top-up benefit.
