NEWS

WIRES

OTHER

Old Age Security Benefit Rates Increase for the July-September Quarter

Human Resources and Skills Development Canada today announced the quarterly benefit rates for Old Age Security (OAS), effective July to September 2011.

As of July 1, the basic OAS pension benefit, paid to people 65 years of age and older, will be $533.70 per month. This represents an increase of 1.3 percent. Payments under the Guaranteed Income Supplement (GIS) and the Allowances will also increase by 1.3 percent. Beginning this month, seniors with little or no income will receive a new GIS top-up benefit of up to $600 for single seniors and $840 for couples. This additional annual benefit is part of Budget 2011.

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.

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 4.8 million seniors with $35 billion in 2009-2010.

For further information, please consult the Human Resources and Skills Development Canada website at www.hrsdc.gc.ca.

This news release is available in alternative formats on request.

BACKGROUNDER

MAXIMUM OLD AGE SECURITY BENEFIT RATES AS OF JULY 1, 2011(i)

----------------------------------------------------------------------------

                              Maximum monthly benefit
Type of Old Age Security               rates          Previous quarter April
benefit                       July to September 2011       to June 2011
----------------------------------------------------------------------------

Basic Old Age Security
 pension                              $533.70                 $526.85
----------------------------------------------------------------------------
Guaranteed Income Supplement

Single                                $723.65                  $665

Spouse/Common-law partner of

- a non-pensioner                     $723.65                  $665

- a pensioner                         $479.84                 $439.13

- an Allowance recipient              $479.84                 $439.13
----------------------------------------------------------------------------

The Allowances

- regular                            $1,013.54                $965.98

- survivor                           $1,134.70               $1,070.78
----------------------------------------------------------------------------

(i) The above amounts include the Guaranteed Income Supplement top-up benefit.