Seniors Get a Raise
Old Age Security and the Guaranteed Income Supplement are indexed quarterly based on changes to the consumer price index. As of July 2014, the amounts are increased by 1.28%.
Adjustments in January were tiny (55 cents a month increase) and there was no increase at all in April. However, as of the July payments, OAS recipients will receive an additional $7.17 per month; up to $558.71 from $551.54. Of course, higher-income seniors may have to repay some (or all) of this raise. If their 2014 net income exceeds the $71,592 base amount they’ll have to repay the lesser of the OAS they receive and their net income over the base amount. Once net income exceeds about $116,000 the OAS is fully clawed back.
Low-income seniors will also receive the 1.28% raise. The following table shows the third quarter rates (July to September 2014) and the maximum income level from the previous calendar year (2013) to qualify.