Human Resources Development Canada announced Thursday that Old Age Security (OAS) benefit rates will increase by 1.2% for the next three months.

The basic OAS pension, paid to most people 65 years of age and over, will be $461.55 per month.

Old Age Security benefit rates are adjusted for inflation every three months (January, April, July and October) based on changes in the average Consumer Price Index.

To calculate the OAS rates for July 2003, HRDC compared the current three-month CPI average (February, March and April 2003) to the previous three-month average — in this case, it was November 2002 to January 2003.