Canada Pension Plan increases by 0.9 per cent Jan. 1

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There will be a very slight increase in Canada Pension Plan benefits for Island seniors Jan. 1, 2014

Canada Pension Plan benefits will increase by 0.9 per cent for those already receiving CPP benefits, Employment and Social Development Canada announced Friday.

CPP 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, which is the cost-of-living measure used by Statistics Canada.

The maximum CPP retirement benefit for new recipients will increase from $1,012.50 to $1,038.33 per month. 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.

Old Age Security benefits, which consist of the basic OAS pension, the Guaranteed Income Supplement (GIS) and the Allowances, will increase by 0.1 per cent. 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 from $550.99 to $551.54 per month.

The GIS and the Allowances provide additional income to low-income pensioners, their spouses or common-law partners, and eligible survivors.

The new rates are effective Jan. 1, 2014

Organizations: Old Age Security, Guaranteed Income Supplement, CPI

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Recent comments

  • Lou Robinson
    March 30, 2014 - 15:38

    Percentage increases are outrageous . People who unfortunately took the pension early due to curcumstances are being robbed. Similar to low wage earners who pay increases are based on percentage.

  • John A. Ward
    March 24, 2014 - 16:49

    The pace of old age pension increases is atrocious compared with the real cost of being a senior. Note: Live-in-caregiver wages and the minimum wage have far outstripped pension increases. A caregiver is now unaffordable for the vast majority of seniors.

  • Nancy Lawson
    February 16, 2014 - 11:12

    I am 60 and wonder what I can expect when I am 65. I have simple part-time seasonal jobs to keep me active, but the CPP payments are based on this minimal amount. In 1990's I was making 200,000 and paid CPP. Would I be based on my 1,000. annual part-time job Or will it be averaged over all the years? If I also took CPP early, how badly would this hurt my payment?

  • Darlene Byrne
    January 29, 2014 - 13:49

    My question is if canada pension went up 0.9 percent . Then you should times your pension at .09, but to get the amount of raise i got you would have to do it at .009 percent so i do not understand that. Can someone explain that to me please.

  • Harry Hunt
    January 28, 2014 - 17:31

    OAS COLA increase .55 cents????? What an insult to the seniors of our country CANADA> Our politicians must be living in another world!!!!

  • R Butchart
    January 21, 2014 - 01:39

    This is a joke for increase in our CPP and OAS, and it was announced yesterday, Jan 19th I heard the Federal Gov. is giving 66 million to the Palestine Gov. How much did this trip to Isreal cost the Canadian Tax Payer? Wonder if we will ever know the cost of that useless trip.

    • Rick
      January 28, 2014 - 11:22

      Your right it is a Major Joke!! I am retired and at .09 increase it got .58 cents. Harper and his crooks are such a joke! I can't wait till 2015. How much money has this lunatic wasted are given away?

  • Barbara Barkley
    January 07, 2014 - 13:44

    Obviously the Cdn Govt has no idea the real cost of living increase-the phone and the hydro alone have gone up more than the pitiful increase-not to mention gas and food.This is disgusting in a country like Canada Many of us depend on the pension to get by.Shame on you Stephen!! Barbara

  • shirley gorman
    January 07, 2014 - 03:47

    Are you kidding me - the OAS pension increases by 65 cents. What a ridiculous amount is this? It will cost more to implement the change. Do you know what 65 cents will buy???? Won't even cover the price of one cup of coffee. I am becoming very disillusioned with our Canadian Government........

  • Don Rollins
    December 24, 2013 - 18:07

    Unless your figures are incorrect, the maximum monthly CPP will increase 2.55% (from $1012.50 to $1038.33) but those of us currently receiving CPP will have to be satisfied with a miserable 0.9% increase? Que pasa?

  • how it is...
    December 23, 2013 - 12:54

    Pay into RRSPs? Save money? This generation CAN'T. You should probably look into the change in cost of living these days compared to back when people could actually put away for a rainy day. Buying a house is basically out of question for anyone with a single income or children. I worked my ass off getting an education that I'm now struggling to pay for because employers in PEI can't afford to pay fair wages. If you want to continue to have a happy retirement on PEI you need my tax dollars here, because the Feds certainly aren't going to infuse any money into this Island. More and more young adults are being forced out west and taking PEI's future infrastructure, community leaders, and workforce with them. In 20 years we'll see how my intelligence looks when there's nothing left to the sandbar.

  • TO HOW IT IS
    December 23, 2013 - 10:56

    Well poor you having to pay into CPP, Do you think the baby boomers didn't pay? I apid in to CPP and EI for 47 years and never drew a cent of EI. I paid my share of CPP alone with the vast majority of Baby boomers. If you had any intelligence at all you would start some RRSPs and continue for the forty years you say you have to work and stop complaining that you will have nothing in forty years. but your generation feels that they are owed everything for nothing. Stop crying and do something now about your future while you still can.

  • how it is...
    December 23, 2013 - 08:02

    Complain all you like folks, but be happy you've got CPP and OAS right now. When I retire in 40 years (if I'm even able to) I'm fully expecting to not have any ponzi scheme money to fund my retirement. The baby boomers are going to dry up everything on the backs of today's young adults and middle class and we're left with the $h!t end of the stick.

    • Do math, then do words . . .
      December 23, 2013 - 10:26

      When well less than 1% of the population has complete control over 46% of the wealth and economy, it's impossible to blame the majority of the population (IE: Boomers) for managing the wealth and economy. If the Boomers have failed at anything, it's arming the next generation with information and a will to engage with the power-elite and authority.

  • Reality Cheque (pun intended)
    December 22, 2013 - 19:59

    Google YouTube: Wealth Inequality in America.

    • Time well spent!
      December 23, 2013 - 10:29

      Wow, if you're going to spend seven minutes doing something this holiday, spend it watching that video - amazing.

  • Lloyd
    December 22, 2013 - 18:39

    Oh boy an extra loaf of bread and a litre of milk every month. Thank you thank you thank you.

  • pathetic
    December 22, 2013 - 17:54

    55 cents a month--what a pathetic joke!!!!!

  • Billy
    December 22, 2013 - 17:02

    Mel, you could by a stamp with the extra dollar per month.

  • Mel
    December 22, 2013 - 13:13

    Oh Wow!!!!! . What ever will I do with all that extra cash.