Ottawa sets new CPP and OAS benefit rates

Those already getting CPP will see their benefits increase 0.9% in the new year, says the federal government.

Read: Set up a successful retirement

The maximum CPP retirement benefit for new recipients will increase from $1,012.50 to $1,038.33 per month. This is calculated on the average yearly maximum pensionable earnings for the last five years. The new rate will be in effect until December 31, 2014.

OAS benefits, which include the basic OAS pension, the Guaranteed Income Supplement (GIS) and 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.

The maximum basic OAS pension will increase from $550.99 to $551.54 per month.

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