OTTAWA, ONTARIO--(Marketwire - Sept. 3, 2010) - Human Resources and Skills Development Canada today announced the quarterly benefit rates for Old Age Security (OAS), effective October to December 2010.

As of October 1, the basic OAS pension benefit, paid to people 65 years and older, will be $521.62 per month. This is an increase of 0.6 percent compared with the July to September rates. Payments under the Guaranteed Income Supplement (GIS) and the Allowances will also increase by 0.6 percent.

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 benefit 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 OAS program is funded through general tax revenues and enhances the quality of life of Canadian seniors by providing a modest base upon which to build additional income for retirement. It provided 4.6 million seniors with $34.7 billion in 2009−2010. 

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 OCTOBER 1, 2010