Human Resources and Skills Development Canada

Human Resources and Skills Development Canada

March 04, 2010 18:14 ET

Old Age Security Benefit Rates Effective April 1, 2010

OTTAWA, ONTARIO--(Marketwire - March 4, 2010) - Human Resources and Skills Development Canada today announced the quarterly benefit rates for Old Age Security (OAS), effective April to June 2010.

As of April 1, the basic OAS pension benefit, paid to people 65 years and older, will remain unchanged at $516.96 per month. Payments under the Guaranteed Income Supplement (GIS) and the Allowances will also remain unchanged.

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 benefits rates are revised quarterly (in January, April, July and October) to reflect increases in the cost of living as measured by the Consumer Price Index (CPI).

The last time the OAS rates increased was in October 2008, when OAS benefits were raised by 2.2 percent in response to a significant increase in the CPI. Since then, the CPI has dropped. Even though the CPI is now rising again, it is not yet back up to the level it was in 2008. If the CPI surpasses its 2008 level in the future, OAS rates will go up again; however, if the CPI goes down, as has occurred in the past, OAS benefits will remain the same. The Old Age Security Act guarantees that OAS benefits do not go down, even when there is a decrease in the CPI.

The OAS program is funded through general tax revenues and provides a basic minimum income for Canadian seniors. It provided 4.5 million seniors with $33.4 billion in 2008−2009. 

The Canada Pension Plan (or the Quebec Pension Plan, in Quebec) is funded through contributions by Canadian workers, their employers and the self-employed, and through investment earnings on the Plan's funds. In addition to retirement benefits, the Plan provides disability benefits, death benefits, survivor benefits, and benefits for children.

Together, the Canada Pension Plan and the OAS program enhance the quality of life of Canadian seniors by providing a modest base upon which to build additional income for retirement. 

For further information, please consult the Human Resources and Skills Development Canada Web site at www.hrsdc.gc.ca.

This news release is available in alternative formats upon request.

BACKGROUNDER

MAXIMUM OLD AGE SECURITY BENEFIT RATES AS OF
APRIL 1, 2010

Type of Old Age Security benefit Maximum monthly benefit rates April – June 2010 Previous quarter January – March 2010
Basic Old Age Security pension $516.96 $516.96
Guaranteed Income Supplement    
Single $652.51 $652.51
Spouse/Common-law partner of    
  a non-pensioner $652.51 $652.51
  a pensioner $430.90 $430.90
  an Allowance recipient $430.90 $430.90
The Allowances 
  regular 
  survivor
$947.86
$1,050.68
$947.86
$1,050.68

Contact Information

  • Office of Minister Finley
    Michelle Bakos
    Press Secretary
    819-994-2482
    or
    Human Resources and Skills Development Canada
    Media Relations Office
    819-994-5559