CANADA: Old Age Security Benefit Rates Effective April 1, 2006

OTTAWA, March 31, 2006: The Department of Human Resources and Social Development today announced the latest benefit rates for Old Age Security (OAS). Any increases in OAS rates are based on changes in the average Consumer Price Index (CPI). Canadians receiving OAS benefits will find their benefits remain the same for the quarter beginning April 1, 2006. For this quarter, any changes would be based on the difference between the CPI for November 2005 to January 2006 and August to October 2005. There was no change in the CPI when those quarters were compared. The basic OAS pension, paid to people 65 years of age and over, will remain at $484.63 per month. Since 1973, all OAS benefits have been adjusted quarterly (in January, April, July and October). The maximum Guaranteed Income Supplement (GIS) and Allowance payments, which are based on the recipient's family income during the previous year, are also unchanged. The OAS program is funded through general tax revenues and provides a basic minimum income for Canadian seniors. Old Age Security provided 4.1 million seniors with approximately $28 billion in 2004-2005. 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 program enhance the quality of life of Canada's seniors by providing a modest base on which to build additional income for retirement.