OAS recipients | General financial discussion | Discussion forum

Probably an increase in the Consumer Price Index (CPI).

According to Old Age Security Amounts and the Consumer Price Index,

Old Age Security (OAS) rate increases are legislated under the Old Age Security Act. They are calculated four times a year (January, April, July and October) using the All-Items Index from the Consumer Price Index (CPI) so that benefits keep up with the cost of living.

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The percentage increase is the percentage change between the average of the most recent 3-month CPI period and that of the last 3-month CPI period in which OAS amounts increased. If the cost of living has decreased over the most recent 3-month CPI period, the calculation of the rate change will produce a negative amount.

However, as prescribed under Old Age Security Act benefit amounts do not decrease; they stay at the same level when there is a decrease in the cost of living. The highest 3-month average CPI remains the reference level until the most recent average CPI climbs above that of the reference level.

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