If you leave your OMERS employer and have not yet reached your early retirement birthday, your benefit will be calculated in two parts:
The benefit based on pre-2013 credited service includes pre-retirement indexing (inflation protection) and early retirement subsidies (including the OMERS bridge benefit).
The benefit based on post-2012 credited service does not include pre-retirement indexing or early retirement subsidies.
Pre-retirement indexing is the inflation protection we apply to your benefit from the date you leave your OMERS employer to the date your pension begins:
The pre-2013 portion of your benefit will include inflation protection, whether you leave your benefit in the OMERS Plan or transfer the commuted value (CV) out.
The post-2012 portion of your benefit will not include pre-retirement inflation protection.
Early retirement benefits affect your benefit calculation for service earned after 2012 and the amount of the OMERS bridge benefit. Your benefit will be calculated in two portions:
You may eventually qualify for an unreduced pension for the pre-2013 portion or, if not, your early retirement pension will be reduced by 5% per year that you’re short of the 85 Factor or 90 Factor, 30 years of service or your normal retirement age (NRA) – this is the “subsidized” reduction.
The bridge benefit will be included in the pre-2013 portion.
This portion no longer includes a possible unreduced early retirement pension. When you eventually begin your pension, the post-2012 portion will be reduced on an actuarial-equivalent basis (an “unsubsidized” reduction). However, you could choose to wait until your NRA to begin your pension, at which point the actuarial-equivalent reduction won’t apply.
If your NRA is 65, the bridge benefit will not be included in the post-2012 portion.
If your NRA is 60, a five-year portion of the bridge benefit (from age 60 to 65) will be included in the post-2012 portion.
Learn how inflation protection helps your OMERS pension.
Learn about the lifetime pension formula and early retirement.
Learn about how and when you will receive your pension.