Old Age Security pension, paid to people 65 years of age and over, will remain unchanged at $516.96 per month
Ottawa (23 September 2009 – There will be no increases in the quarterly benefit rates for Old Age Security (OAS) for the period covering October to December 2009.
Human Resources and Skills Development Canada today announced that as of October 1, 2009, the basic OAS pension, paid to people 65 years of age and over, will remain unchanged at $516.96 per month. Payments under the Guaranteed Income Supplement (GIS) and the Allowances will also remain unchanged.
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). Although there has been a decrease of 0.4 percent in the CPI compared with the last time the rates were adjusted, the October rates are not changing because the Old Age Security Act ensures that OAS benefits are not reduced in a period of deflation.
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.
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 $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.
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE