CANADA: Old Age Security Benefit Rates from July 1 Announced

OTTAWA, Ontario (Government of Canada Press Release), June 29, 2006: Human Resources and Social Development Canada today announced the latest benefit rates for Old Age Security (OAS). As of July 1, 2006, the basic OAS pension, paid to people 65 years of age and over, will be $487.54 per month. This is an increase of 0.6 percent over the previous quarter. Since 1973, all OAS benefits have been adjusted quarterly (in January, April, July and October). Any increases in OAS rates are based on changes in the average Consumer Price Index. The maximum Guaranteed Income Supplement (GIS) and Allowance payments, which provide additional benefits to eligible low-income pensioners and their spouses or common-law partners, as well as to eligible survivors, will also increase by 0.6 percent. The OAS program is funded through general tax revenues and provides a basic minimum income for Canadian seniors. Old Age Security provided 4.2 million seniors with approximately $29 billion in 2005-2006. 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, says the press release.