Canada Pension Plan (CPP) and Old Age Security (OAS) Benefit Rates Effective January 1, 2008

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The following was released on the Canada News Site ..

OTTAWA, ONTARIO, December 21, 2007

Human Resources and Social Development Canada today announced the latest benefit rates for the Canada Pension Plan (CPP) and Old Age Security (OAS).

Canadians already receiving CPP benefits as of December 2007 will get an increase of 2.0 percent on January 1, 2008. Canada Pension Plan benefits are adjusted once a year, in January. Increases are based on changes over a 12-month period in the Consumer Price Index, which is the cost-of-living measure used by Statistics Canada.

OAS includes the Guaranteed Income Supplement (GIS) and the Allowance. The GIS and Allowance payments provide additional benefits to eligible low-income pensioners and their spouses or common-law partners, as well as to eligible survivors. These payments are also based on the Consumer Price Index but are adjusted quarterly, in January, April, July and October.

As of January 1, 2008, the basic OAS pension, paid to people 65 years of age and over, will remain unchanged at $502.31 per month. The GIS and Allowance payments will also remain the same. Although there has been no increase over the previous quarter, the OAS benefit rates have increased by 2.1 percent overall over the past year.

Funded through general tax revenues, the OAS provides a basic minimum income for Canadian seniors. It provided 4.4 million seniors with approximately $30 billion in 2006-2007.

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 provides disability benefits, death benefits, survivor benefits, and benefits for children.

Together, the CPP and the OAS provide Canada’s seniors with basic pension income in retirement.

backgrounder

Maximum Canada Pension Plan benefit rates as of
January 1, 2008

Type of Canada Pension Plan Benefit

Maximum Benefit Rates for 2008

Retirement pension (at age 65)

$ 884.58

Disability pension

$ 1,077.52

Survivor’s pension (under age 65)

$ 493.28

Survivor’s pension (age 65 and over)

$ 530.75

Disabled contributor’s child benefits
Deceased contributor’s child benefits

$ 208.77
$ 208.77

Death benefit

$2,500.00

Combined pensions:
Survivor/Retirement (retire at age 65)
Survivor/Disability

$ 884.58
$ 1,077.52

Flat rate:
Survivor’s pension
Disability pension

$ 161.56
$414.08


backgrounder

Maximum OLD AGE SECURITY benefit rates as of January 1, 2008

Type of Old Age Security benefit

Maximum monthly benefit rates

January – March 2008

Previous quarter

October – December 2007

Basic Old Age Security pension

$502.31

$502.31

Guaranteed Income Supplement

Single

$634.02

$634.02

Spouse/Common-law partner of

  • a non-pensioner

$634.02

$634.02

  • a pensioner

$418.69

$418.69

  • an Allowance recipient

$418.69

$418.69

The Allowance

  • regular
  • survivor

$921.00
$1,020.91

$921.00
$1,020.91

SOURCE: Canada Newsroom

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[…] Check it out! While looking through the blogosphere we stumbled on an interesting post today.Here’s a quick excerpt The following was released on the Canada News Site .. OTTAWA, ONTARIO, December 21, 2007 Human Resources and Social Development Canada today announced the latest benefit rates for the Canada Pension Plan (CPP) and Old Age Security (OAS). Canadians already receiving CPP benefits as of December 2007 will get an increase of 2.0 percent on January 1, 2008. Canada Pension Plan benefits are adjusted once a year, in January. Increases are based on changes over a 12-month period in the Consumer Pri […]

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