Old Age Security benefit amounts increase for October to December 2013

Ottawa, Ontario, September 30, 2013 — Employment and Social Development Canada today announced the quarterly benefit amounts for Old Age Security (OAS) for October to December 2013.

The basic OAS pension benefit paid to people 65 years of age and older will increase by 0.2% (from $549.89 to $550.99 per month for the maximum benefit) from October 1 to December 31, 2013. Payments under the Guaranteed Income Supplement (GIS), the Allowance and the Allowance for the Survivor will also increase by the same percentage.

The OAS program consists of the basic pension, the GIS and the Allowances. The GIS and Allowances provide additional benefits to eligible low-income pensioners and their spouses or common-law partners, as well as to eligible survivors. OAS benefit amounts 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 Old Age Security Act guarantees that OAS benefits never go down, even when there is a decrease in the CPI. If the average CPI surpasses the previous level in the future, OAS benefits will go up again. However, if the average CPI goes down, OAS benefits will remain the same.

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 2012–2013, it provided 5.2 million seniors with an estimated $40.4 billion in benefits.

MAXIMUM OLD AGE SECURITY BENEFIT RATES AS OF OCTOBER 1, 2013

*The Guaranteed Income Supplement and Allowances amounts listed above include the top-up benefit introduced in July 2011.

For further information, please consult the Service Canada website at: servicecanada.gc.ca.

Source: http://news.gc.ca/web/article-eng.do?mthd=tp&crtr.page=2&nid=776619&crtr.tp1D=1