Ottawa, Ontario, September 27, 2012—Human Resources and Skills Development Canada today announced the quarterly benefit rates for Old Age Security (OAS) for October to December 2012.
The maximum basic OAS pension benefit paid to people 65 years of age and older will remain unchanged at $544.98 per month from October 1 to December 31, 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. TheGISand 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 July 2012, when benefits were raised by 0.9 percent in response to an increase in the averageCPI. Since then, the averageCPIhas remained the same.
If the average CPI surpasses this level in the future, OAS rates will go up again; however, if the average 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.
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 2011–2012, it provided 5 million seniors with $38.1 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):
Marian Ngo
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 OCTOBER 1, 2012
* The Guaranteed Income Supplement and Allowances amounts listed above include a top-up benefit.
