News Release Article from  Employment and Social Development Canada

Archived - Canada Pension Plan and Old Age Security benefit rates effective January 1, 2009

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OTTAWA, ONTARIO, December 5, 2008 — Human Resources and Skills Development Canada today announced the next benefit rates for the Canada Pension Plan (CPP) and Old Age Security (OAS).

Canadians already receiving CPP benefits as of December 2008 will see their benefits increase by 2.5 percent on January 1, 2009. Canada Pension Plan benefits are revised once a year, in January. Increases are based on changes over a 12-month period in the Consumer Price Index, which is the cost-of-living measure used by Statistics Canada. The maximum CPP retirement benefit will increase on January 1, 2009, from $884.58 to $908.75 per month.

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. These payments are also based on the Consumer Price Index but are revised quarterly, in January, April, July and October.

As of January 1, 2009, the basic OAS pension, paid to people 65 years of age and over, will remain unchanged at $516.96 per month. GIS and Allowance payments will also remain the same. Although there has been no increase over the previous quarter, the OAS benefit rates have increased by 2.9 percent overall over the past year.

Funded through general tax revenues, the OAS program provides a basic minimum income for Canadian seniors. It provided 4.5 million seniors with approximately $32 billion in 2007-2008.

The CPP (or the Quebec Pension Plan in Quebec) is funded through contributions by Canadian workers, their employers and the self-employed, as well as through earnings on investment of the Plan's funds. In addition to retirement benefits, the Plan provides disability benefits, death benefits, survivor benefits, and benefits for children.

Together, the CPP and OAS provide Canada's seniors with basic pension income in retirement.

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JANUARY 1, 2009

Type of Canada Pension Plan Benefit Maximum Benefit Rates for 2009
Retirement pension (at age 65)
Disability pension $1,105.99
Survivor's pension (under age 65) $506.38
Survivor's pension (age 65 and over) $545.25
Disabled contributor's child benefits
Deceased contributor's child benefits
Death benefit $2,500.00
Combined pensions:
Survivor/Retirement (retire at age 65)

Flat rate:
Survivor's pension
Disability pension



JANUARY 1, 2009

Type of Old Age Security benefit Maximum monthly benefit rates
January - March 2009
Previous quarter
October - December 2008
Basic Old Age Security pension
Guaranteed Income Supplement


Spouse/Common-law partner of

a non-pensioner
a pensioner
an Allowance recipient




The Allowance



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