The benefit rates for the Canada Pension Plan (CPP) and old age security (OAS) are increasing, according to Employment and Social Development Canada.
Effective Jan. 1, 2014, CPP benefits will increase by 0.9% for those already receiving CPP benefits. These benefits are revised once a year, in January, based on changes over a 12-month period (November 2012 to October 2013) in the consumer price index (CPI), which is the cost-of-living measure used by Statistics Canada.
The maximum CPP retirement benefit for new recipients will increase to $1,038.33 per month from $1,012.50. This increase is calculated on the average yearly maximum pensionable earnings for the last five years.
The new CPP rates will be in effect until Dec. 31, 2014.
OAS benefits, which consist of the basic OAS pension, the Guaranteed Income Supplement (GIS) and the Allowances, will increase by 0.1%. These payments are also based on the CPI but are reviewed quarterly (in January, April, July and October) and revised as required to reflect increases in the cost of living as measured by the CPI. The maximum basic OAS pension will increase to $551.54 per month from $550.99.
For those with direct deposit, the CPP and OAS payment dates for 2014 are January 29, February 26, March 27, April 28, May 28, June 26, July 29, August 27, September 26, October 29, November 26, December 19. Those without direct deposit will usually receive their payment within the last three business days of each month.