Old Age Security benefit amounts increase for July to September 2013

OTTAWA, June 25, 2013 /CNW/ - Human Resources and Skills Development Canada today announced the quarterly benefit amounts for Old Age Security (OAS) for July to September 2013.

The maximum basic OAS pension benefit paid to people 65 years of age and older will increase from $546.07 to $549.89 per month from July 1 to September 30, 2013. This represents an increase of 0.7% from the previous quarter. 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 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 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 last time OAS benefit amounts increased was in January 2013, when benefits were raised in response to an increase in the average CPI. Since then, the average CPI had initially decreased, but increased again in the last quarter.

The Old Age Security Act guarantees that OAS benefits do not 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.

For further information, please consult the Service Canada web site at www.servicecanada.gc.ca.

This news release is available in alternative formats on request.


backgrounder


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

Type of Old Age Security
benefit
Maximum monthly
benefit rates
July to September 2013
Previous quarter

April to June 2013
Basic Old Age Security
pension
$549.89 $546.07

Guaranteed Income
Supplement*


Single

Spouse or common-law
partner of

- a non-pensioner

- a pensioner

- an Allowance recipient
 


$745.62
 



$745.62

$494.40

$494.40

 


$740.44
 



$740.44

$490.96

$490.96

The Allowances

Regular

Survivor


$1,044.29

$1,169.14


$1,037.03

$1,161.01

* The Guaranteed Income Supplement and Allowances amounts listed above include a top-up benefit.

 

 

 

 

 

 

 

SOURCE Human Resources and Skills Development Canada




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