We understand that dealing with an injury or illness can be a difficult time for members. To support you while you are off, the OMERS Plan provides disability benefits if you are unable to work for more than four months and you are still employed with your OMERS employer.
Disability benefits start as early as the end date of your disability elimination period. This is the waiting period between your date of disability and the first day of the fifth month following the start date of your injury or illness.
There is no age requirement to start the disability pension; however, receiving this income may impact other disability-related income you are eligible for or receiving. For example, if you are eligible for long-term disability (LTD) payments from an insurer, you should contact the LTD carrier or your employer regarding the eligibility rules.
To receive and maintain disability benefits, you must submit the necessary medical documentation and notify OMERS of any changes in your employment status.
If your disability occurred prior to enrolling in the Plan, you may still be able to qualify for the disability contribution waiver once you become a member. However, the disability elimination period and deemed contributory earnings for the disability contribution waiver will look different than described below. Reach out to OMERS Member Experience for more information.
To qualify for disability benefits, a disability cannot have resulted from a wilful self-inflicted injury, committing (or attempting to commit) an offence under the Criminal Code or working in an unlawful occupation.
There are two types of disability benefits. If you meet the definition of totally disabled, you may be eligible for the disability contribution waiver. If you meet the definition of totally and permanently disabled, you may be eligible for the disability pension. If you qualify for both the disability contribution waiver and disability pension, the best option for you will depend on your personal circumstances. You may also wish to speak to your employer about any other benefits or leave questions that you have.
Most members choose the disability contribution waiver because it allows them to continue to grow their pension. Fewer members qualify for the disability pension, but for those who do qualify, it provides immediate access to their pension income, subject to certain maximums.
You must provide all relevant medical and other information to OMERS to continue receiving disability benefits and notify OMERS of any changes in your eligibility.
If you become totally disabled as defined by the Plan, you are eligible for a disability contribution waiver. The Plan covers the contributions you and your employer would have made if you were not on a disability leave and your deemed contributory earnings are reflected in your record. This means that while on a disability contribution waiver, you continue to accumulate credited service and deemed contributory earnings in the Plan.
If you are returning to work with an OMERS employer on an OMERS-approved temporary rehabilitation program, you may be eligible for a disability contribution waiver during this temporary period.
While you are employed, you contribute to the Plan based on your regular and recurring “contributory” earnings each pay period. These contributions exclude additional amounts like overtime pay and most one-time or lump-sum payments. When you leave the Plan, your pension benefit is calculated using the “best five” earnings in the OMERS pension formula.
While you are on a disability contribution waiver, your contributory earnings are calculated based on the latest contributions you made to the Plan.
Typically, your deemed contributory earnings match the annual rate of pay you received immediately before your disability leave. If you contributed to the Plan during part of your disability leave, the annual rate of pay used for your last contributions before the disability contribution waiver began will determine your deemed contributory earnings. These earnings are used to calculate your pension and are increased annually by the lesser of the annual increase in the Average Industrial Wage (AIW) or Consumer Price Index (CPI).
The disability contribution waiver can begin as early as the first day of the fifth month after you become totally disabled and may continue until one of the following events occurs:
You no longer fit the definition of totally disabled
You begin receiving an OMERS disability or early retirement pension (the latter is only available if you leave your OMERS employer)
You return to work with your OMERS employer, another employer or become self-employed (unless you are on an OMERS-approved rehabilitation program)
You end your employment with your OMERS employer prior to your early retirement birthday and transfer your benefit out of the Plan or
You reach your normal retirement age (NRA)
You may be eligible to continue receiving a disability contribution waiver if you return to work with your OMERS employer as part of a temporary OMERS-approved rehabilitation program. Your OMERS employer will define the terms of a rehabilitation program based on your circumstances and OMERS will review and evaluate approval of the program based on the information provided by your employer.
If you become totally and permanently disabled as defined by the Plan, you can receive a disability pension, which is an immediate unreduced pension calculated using the OMERS pension formula, subject to certain maximums.
Until your normal retirement age, the maximum monthly OMERS disability pension is 85% of the monthly contributory earnings that you last received from your OMERS employer.
If you are receiving Workplace Safety and Insurance Board (WSIB) benefits, the WSIB amount will be included in the calculation of your maximum disability pension. The combined total of your monthly WSIB benefit and monthly disability pension from the Plan cannot exceed 85% of the monthly contributory earnings that you last received from your employer.
If you exceed these limits, your OMERS disability pension will be reduced until you reach your normal retirement age. Additionally, if you are receiving WSIB benefits and the WSIB benefit changes before your normal retirement age for reasons other than inflation adjustments, you must inform OMERS of the updated amount.
Your disability pension begins on the later of:
The first day of the fifth month after you become totally and permanently disabled or
The first of the month following the month you elect a disability pension, if you have been on a disability contribution waiver.
If you are on a disability contribution waiver immediately before an OMERS disability pension, the disability contribution waiver benefit ends when your pension begins and you will no longer accrue credited service in the Plan.
Your disability pension can continue until the earliest of one of the following events occurs:
You no longer meet the definition of totally and permanently disabled
You return to work with your OMERS employer, another employer or become self-employed (other than on an OMERS-approved rehabilitation program)
You begin an early retirement pension (this is only available if you leave your OMERS employer) or
You reach your normal retirement age (NRA) and your disability pension becomes a normal retirement pension.
If your life expectancy is less than two years due to an illness or other condition, you may be able to withdraw the commuted value (CV) of your pension plus any applicable refund of contributions, in cash, less applicable tax withholdings.
Once the shortened life expectancy benefit is received, no further benefit is payable from the Plan to you, your survivors, beneficiary or estate.
Survivor benefits are a key feature of the Plan to ensure security for you and your survivors. If you have an eligible spouse, their written consent is required under legislation to withdraw the shortened life expectancy benefit.
As there are significant differences between how the shortened life expectancy benefit is calculated for a member who has not yet started to receive their monthly pension payments and a retired member who has started receiving their monthly pension payments, it is important to fully understand this benefit in advance of making any decisions.
To apply for the shortened life expectancy benefit, call OMERS Member Experience.
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