The benefit rates for the Canada Pension Plan (CPP) are increasing next year, says Employment and Social Development Canada.

CPP benefits will increase by 1.8% for those already receiving CPP benefits.

For 2015, the maximum CPP retirement benefit for new recipients age 65 will be $1,065 per month.

Read: Expanding the CPP is a golden opportunity

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, 2015.

CPP benefits are revised once a year, in January, based on changes over the 12-month period (November 2013 to October 2014) in the consumer price index (CPI), which is the cost-of-living measure used by Statistics Canada.

Read: Expanding the CPP is a bad idea

Old age security (OAS) benefits, which consist of the basic OAS pension, the Guaranteed Income Supplement (GIS) and the Allowances, will remain the same for the first quarter of 2015 (January to March). As of Jan. 1, 2015, the basic OAS pension will stay at $563.74 per month. OAS benefits increased by 0.9% in the previous quarter.

OAS benefits 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.

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For those with direct deposit, the CPP and OAS payment dates for 2015 are Jan. 28, Feb. 25, March 27, April 28, May 27, June 26, July 29, Aug. 27, Sept. 28, Oct. 28, Nov. 26 and Dec. 22. Those without direct deposit will usually receive their payment within the last three business days of each month.

The OAS is funded through general tax revenues and provides a basic monthly income for Canadian seniors. In 2013/14, approximately $41.8 billion in OAS benefits were provided to 5.4 million individuals.

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Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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marguerite mcdonald:

I was divorced in 2008 from my husband of 30 years, he was supposed to be paying me alimony but he hasn’t worked since august 2014 so he don’t pay anything. He will qualify for cpp in February. my question will I qualify to get any of his cpp.

Wednesday, January 28 at 10:09 am | Reply

Morty Fine:

Thanks for the article. I receive CPP by direct deposit (i.e. no paper statement). I received the new net (after tax) CPP in January, so know the new net amount. How do I find out the new gross (before tax) amount. The Service Canada “My Account” doesn’t tell me, and I haven’t been able to get through the telephone prompts to a real person. Thanks.

Monday, February 02 at 4:35 pm | Reply

jose paulo farramenta:

Please can you tell me how much I get at age 64?..

Saturday, February 28 at 3:08 pm | Reply

Simon Clews:

I calculate the year-over-year increase in the CPI to be 1.8% as reported by Stats Canada and as indicated on the Government of Canada CPP website, but applying that rate of increase to the 2014 maximum amount of $1,038.33 yields a new maximum of $1,057.02. The 2015 maximum of $1,065.00 actually represents a 2.57% increase over last year’s maximum. Any idea why the prescribed rate wasn’t applied in 2015?

Sunday, May 24 at 11:57 am | Reply

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