Westcoast Watch!
Edition 2004-01
New Government Benefit Amounts (CPP & OAS)
Effective January 1, 2004
January 2004
Government Plans
For 2004, highlights of changes in CPP (“Canada Pension Plan”) and Old Age Security (“OAS”) are:
Ø the Year’s Maximum Pensionable Earnings (“YMPE”) is $40,500;
Ø the maximum CPP pension is $9,770.00 per year ($814.17 per month) for retirement in 2004;
Ø the employee and employer each contributes 4.95% of earnings between $3,500 (the Year’s Basic Exemption, or “YBE”) and the YMPE. The maximum CPP employee / employer contribution is $1,831.50 each
Ø the maximum OAS pension is $462.47 per month for the first quarter of 2003.
Details on benefit amounts and changes from previous amounts are summarized below:
CPP (Canada Pension Plan) Summary
|
Type of Benefits |
New 2004 Maximum Rates |
Old 2003 Maximum Rates |
% Change |
|
|
|
|
|
|
Retirement (at age 65) |
$814.17 |
$801.25 |
1.6% |
|
Disability |
$992.80 |
$971.26 |
2.2% |
|
Survivors - under age 65 |
$454.42 |
$444.96 |
2.1% |
|
- age 65 & over |
$488.50 |
$480.75 |
1.6% |
|
Children of Disabled Contributor |
$192.68 |
$186.71 |
3.2% |
|
Children of Deceased Contributor |
$192.68 |
$186.71 |
3.2% |
|
Death (lump sum) |
$2,500.00 |
$2,500.00 |
0.0% |
|
|
|
|
|
|
Other Information & Statistics |
|
|
|
|
Year’s Maximum Pensionable Earnings (YMPE) |
$40,500.00 |
$39,900.00 |
1.5% |
|
Year’s Basic Exemption (YBE) |
$3,500.00 |
$3,500.00 |
0.0% |
|
Employee / Employer Contribution Rate |
4.95% |
4.95% |
0.0% |
OAS (Old Age Security) Summary
|
Type of Benefits |
New 2004 1st Q Maximum Rates |
Old 2003 4th Q Maximum Rates |
% Change |
|
|
|
|
|
|
Old Age Security Pension |
$462.47 |
$461.55 |
0.2% |
|
Guaranteed Income Supplement |
|
|
|
|
¨ Single |
$549.63 |
$548.53 |
0.2% |
|
Spouse / Common-law partner of |
|
|
|
|
¨ a Non-Pensioner |
$549.63 |
$548.53 |
0.2% |
|
¨ a Pensioner |
$358.01 |
$357.30 |
0.2% |
|
¨ an Allowance Recipient |
$358.01 |
$357.30 |
0.2% |
|
The Allowance |
|
|
|
|
¨ Regular |
$820.48 |
$818.85 |
0.2% |
|
¨ Survivor |
$905.83 |
$904.03 |
0.2% |
This WESTCOAST WATCH publication is for information purposes only. Every effort has been made to ensure the accuracy of the information provided herein. However, no person or firm involved in the preparation or distribution of this bulletin accepts any liability for its contents or use. Should you have any questions or wish to discuss any of the information presented, please contact our consulting actuaries below:
• Stephen Cheng Tel: (604) 732-0898 Email: stephen@WAInc.ca