Social Development Canada today announced that Old Age Security (OAS) benefit rates will increase as of April 1.

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% 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%.

Increases in OAS rates are based on changes in the average Consumer Price Index. Since 1973, all OAS benefits have been adjusted quarterly.

The OAS program 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.