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.
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)
Survivor’s pension (under age 65)
Survivor’s pension (age 65 and over)
Disabled contributor’s child benefits
Deceased contributor’s child benefits
Survivor/Retirement (retire at age 65)
Maximum OLD AGE SECURITY benefit rates as of January 1, 2008
Type of Old Age Security benefit
Maximum monthly benefit rates
January – March 2008
October – December 2007
Basic Old Age Security pension
Guaranteed Income Supplement
Spouse/Common-law partner of
- a non-pensioner
- a pensioner
- an Allowance recipient
SOURCE: Canada Newsroom