Human Resources and Skills Development Canada announced the benefit rates for the Canada Pension Plan (CPP) and Old Age Security (OAS), effective Jan. 1, 2011.
CPP benefits will increase by 1.7 per cent. CPP benefits are revised once a year, in January, based on changes over a 12-month period (November 2009 to October 2010) in the Consumer Price Index. The maximum CPP retirement benefit will increase from $934.17 to $960 per month.
The basic OAS pension, the Guaranteed Income Supplement and the Allowances will increase by 0.5 percent. These payments are also based on the Consumer Price Index but are revised quarterly, in January, April, July and October. The maximum basic Old Age Security pension will increase from $521.62 to $524.23 per month.
The Guaranteed Income Supplement and the Allowances provide additional income to low-income pensioners, their spouses or common-law partners and eligible survivors.
Although OAS and CPP benefits are not indexed at the same time, they are both adjusted with the cost of living over a given year.
MAXIMUM CANADA PENSION PLAN BENEFIT RATES AS OF JANUARY 1, 2011
|Type of Canada Pension Plan Benefit||Maximum Benefit Rates for 2011|
|Retirement pension (at age 65)||$960 |
|Disability pension ||$1,153.37|
|Survivor's pension (under age 65) ||$529.09|
|Survivor's pension (age 65 and over) ||$576|
|Disabled contributor's child benefits|
Deceased contributor's child benefits
|Death benefit ||$2,500|
Survivor/Retirement (retire at age 65)
MAXIMUM OLD AGE SECURITY BENEFIT RATES AS OF JANUARY 1, 2011
Type of Old Age Security benefit
Maximum monthly benefit rates
January to March 2011
Previous quarter October to December 2010
Basic Old Age Security pension
|Guaranteed Income Supplement|| || |
Spouse/Common-law partner of
| || |
| a non-pensioner|
| a pensioner|
| an Allowance recipient|