New CPP and OAS benefit amounts take effect

New benefit amounts for the Canada Pension Plan (CPP) and Old Age Security (OAS) came in from January 1, 2016.

CPP benefits will increase by 1.2% for those already receiving the benefits. For 2016, the maximum CPP retirement benefit for new recipients age 65 will be $1,092.50 per month, an increase of $330 for the year compared to the maximum in 2015.

OAS benefits, which consist of the basic OAS pension, the Guaranteed Income Supplement (GIS) and the Allowances, will increase by 0.1% for the first quarter of 2016 (January to March). As of January 1, 2016, the basic OAS pension will increase from $569.95 to $570.52 per month.

Read: CPP benefits rise by 1.4% in 2017

“I would like to reiterate the government’s commitment to improve the income security of seniors, which includes increasing the Guaranteed Income Supplement for seniors who live alone, indexing Old Age Security and Guaranteed Income Supplement payments to a new senior’s price index, and cancelling the increase in the age of eligibility, from 65 to 67 years, for Old Age Security,” said The Honourable Jean-Yves Duclos, Minister of Families, Children and Social Development, in a press release.

The new CPP rates will be in effect until December 31, 2016. OAS benefits 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.