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news release

December 22, 2005
FOR IMMEDIATE RELEASE
Backgrounder 

CANADA PENSION PLAN AND OLD AGE SECURITY BENEFIT RATES TO INCREASE ON JANUARY 1, 2006

OTTAWA —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 2005 will get an increase of 2.3 percent on January 1, 2006. Canada Pension Plan benefits are adjusted once a year, in January. Increases are based on changes in the Consumer Price Index (CPI), the cost-of-living measure used by Statistics Canada, over a 12-month period.

As of January 1, 2006, the basic OAS pension, paid to people 65 years of age and over, will be $484.63 per month. This is an increase of 1.0 percent over the previous quarter. OAS rates are based on the average Consumer Price Index and are adjusted quarterly (in January, April, July and October). Over the past year, the OAS benefit rates have increased 1.7 percent overall.

The maximum Guaranteed Income Supplement (GIS) and Allowance payments, which provide additional benefits to eligible low-income pensioners and their spouses or common-law partners, as well as to eligible survivors, will also increase by 1.0 percent this quarter.

In addition to the quarterly increase, the Guaranteed Income Supplement, the Allowance, and the Allowance for the survivor will be increased to help address the needs of Canada’s poorest seniors. The GIS, the Allowance and the Allowance for the survivor will increase by $18 a month for single recipients and by $29 a month for couples, effective January 1, 2006.

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For more information, please contact:

Media Relations
Social Development Canada
(613) 941-1110

Web site: www.sdc.gc.ca

BACKGROUNDER

Maximum Old Age Security benefit rates as of January 1, 2006



Type of Old Age Security benefit Maximum monthly benefit rates

January – March 2006		 Previous quarter

October – December 2005

Basic Old Age Security pension
  • $484.63
  • $479.83

Guaranteed Income Supplement*

Single

Spouse/Common-law partner of

  • a non-pensioner

  • a pensioner

  • an Allowance recipient

 

  • $593.97

 

  • $593.97

  • $389.67

  • $389.67

 

  • $570.27

 

  • $570.27

  • $371.46

  • $371.46

The Allowance

  • regular

  • survivor

 

  • $874.30

  • $967.24

 

  • $851.29

  • $939.84

*This includes the GIS increase for 2006.

Maximum Canada Pension Plan benefit rates as of January 1, 2006


Type of Canada Pension Plan Benefit Maximum Benefit Rates for 2006

Retirement pension (at age 65)
  • $844.58

Disability pension
  • $1,031.05

Death benefit
  • $2,500.00

Survivor's pension (under age 65)
  • $471.85

Survivor's pension (age 65 and over)
  • $506.75

Combined pensions:

  • Survivor/Retirement (retire at age 65)

  • Survivor/Disability

 

  • $844.58

  • $1,031.05

Disabled contributor's child benefits

Deceased contributor's child benefits
  • $200.47
  • $200.47

Flat rate:

  • Survivor's pension

  • Disability pension

 

  • $155.13

  • $397.61

More information:
     
   
Last modified :  2005-12-23 top Important Notices