Human Resources and Skills Development Canada

Human Resources and Skills Development Canada

March 10, 2009 16:45 ET

Old Age Security Benefit Rates Effective April 1, 2009

OTTAWA, ONTARIO--(Marketwire - March 10, 2009) - Human Resources and Skills Development Canada today announced the next benefit rates for Old Age Security (OAS).

As of April 1, 2009, the basic OAS pension, paid to people 65 years of age and over, will remain unchanged at $516.96 per month for the period covering April-June 2009. Although there is no change this quarter, the OAS benefit rates have increased by 2.9 percent overall over the past year.

OAS benefits are revised quarterly (in January, April, July and October) to reflect any increases in the cost of living as measured by the Consumer Price Index (CPI). If there is no increase in the cost of living, benefit rates stay at the same level.

The OAS program consists of the basic pension, the Guaranteed Income Supplement (GIS) and the Allowance. The GIS and the Allowance provide additional benefits to eligible low-income pensioners and their spouses or common-law partners, as well as to eligible survivors.

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

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 approximately $32 billion in 2007-08.

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.

This news release is available in alternative formats upon request.

The Backgrounder is available at the following address: http://media3.marketwire.com/docs/fina.pdf

Contact Information

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