Canadians already receiving Canada Pension Plan benefits as of December 2002, will get an increase as of January 1, 2003. Human Resources Development Canada today announced CPP benefit rates will increase by 1.6%.

Canadians receiving Old Age Security benefits will also get an increase as of January 1. During the first quarter of 2003, the basic OAS pension, paid to people 65 years of age and over, will be $453.36 per month. This is an increase of 0.9% over the rate for the previous three months.

The maximum Guaranteed Income Supplement and Allowance payments, which are based on the recipient’s family income during the previous year, are also increasing by 0.9%.

Increases in OAS rates are based on changes in the average Consumer Price Index. Since 1973, all OAS benefits have been indexed quarterly. CPP benefits are adjusted once a year, in January, based on increases in the CPI.