The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Social Development Canada has announced that Old Age Security (OAS) benefit rates will increase as of April 1, 2004. The basic OAS pension, paid to people 65 years of age and over, will be $463.39 per month. This is an increase of 0.2 percent over the rate for the previous three months. The maximum Guaranteed Income Supplement (GIS) and Allowance payments, which are based on the recipient's family income during the previous year, will also increase by 0.2 percent. Increases in OAS rates are based on changes in the average Consumer Price Index (CPI). Since 1973, all OAS benefits have been adjusted quarterly (in January, April, July and October). Canada's Old Age Security program provides seniors with a secure base of retirement income. It also provides additional benefits to eligible low-income pensioners and their spouses or common-law partners in the form of the Guaranteed Income Supplement (GIS) and the Allowance. The OAS program is the first level of Canada's three-level retirement income system. It is funded through general tax revenues and provides a basic minimum income for Canadian seniors. The OAS program is the most widely accessible source of income for older Canadians, providing four million seniors with more than $26 billion in 2002/2003. The second level, the Canada Pension Plan, is funded through contributions by Canadian workers and their employers and the self-employed, as well as through earnings on investment of the Plan's funds. See 'Income' P.# Con't from P.# In addition to retirement benefits, the Plan also provides disability benefits, death benefits, survivor benefits, and benefits for children. Together, the CPP and the OAS program-the first two levels of the retirement income system-enhance the quality of life of Canada's seniors by providing a modest base on which to build additional income for retirement. The third level is made up of private savings, including employer-sponsored pension plans and registered retirement savings plans (RRSPs).
