The time you worked for your OMERS employer before you are enrolled in the OMERS Plan can be purchased and converted into credited service. Increasing your credited service will increase your pension and may allow you to retire earlier without a reduction. You may also have other service that you can buy back and convert to OMERS service for example, a period of service from another pension plan that you cashed or transferred out. Note: If you decide to wait and buy back this service later in your career, it can become more costly.
OMERS is a defined benefit pension plan. This means you will receive a reliable, lifetime stream of income based on your years of service and earnings. Once retired, your pension doesn’t fluctuate like other investments may, so you know exactly how much you will receive every month for life.
When you work less than full time, OMERS will annualize your earnings to calculate your pension. This means we use the equivalent of what you would have earned had you worked full time. Example: Emily works 18.5 hours a week, compared to a 37-hour full-time schedule. Her “best five” earnings are $35,000. To calculate her pension, we would annualize her “best five” earnings and use $70,000.
As long as you continue to work for your OMERS employer, your membership in the OMERS Plan will continue – there are no minimum work hours or earnings limits. You cannot opt out of membership as long as you are working for your OMERS employer.
You will contribute a percentage of your earnings to help pay for your future pension. Your employer will contribute an equal amount. These contributions will fund a portion of your pension. Investment earnings of the OMERS Fund will pay the balance. Learn more about OMERS contribution rates.
Complete the Offer of OMERS membership form in the booklet your employer provided when you were offered membership. Give the form to your employer and they will send your information to OMERS. If you need a copy of the form, contact your employer.
Yes, it’s important that your employer have a record of your decision. Complete the Offer of OMERS membership form in the booklet your employer provided when you were offered membership. If you need a copy of the form, contact your employer.
Yes, you can join in the future if your earnings and/or hours worked still qualify for membership in the OMERS Plan; however, it becomes your responsibility to contact your employer to initiate enrolment.
We will produce your pension statement once we receive your employer’s year-end information. We usually send out pension statements in spring and throughout the summer. If yours is late, please contact your employer or OMERS.
Note: We run your employer’s year-end information through checks before we print the pension statements. Also, we have nearly 1,000 employers who send us year-end information at different times – some members will receive their pension statement before or after you do.
If you don’t see a spouse on record on page two of your pension statement or in your myOMERS account, don’t worry. Whether we have your spouse information on our records or not, their eligibility for a survivor pension is always reviewed and confirmed by OMERS, as required under legislation. By updating records with us in advance, it will ensure that we can more quickly identify your spouse and proceed with steps required to determine their eligibility for a survivor pension.
If you don’t have a spouse on record with us yet – or if you do but it needs to be revised – you can easily update your spousal information in your myOMERS account or by contacting OMERS Member Experience.
When you retired, we may not have collected information about your spouse at that time. If you would like to update your spouse on record, you can do so by contacting OMERS Member Experience.
Reminder: Your legal spouse or common-law spouse on the day you began collecting your pension is entitled to a survivor pension after your death.
OMERS refers to this person as your retirement-date spouse. The entitlement of your retirement-date spouse to your survivor pension does not change (unless they formally waive their entitlement), even if your relationship status with them has changed through separation or divorce after you began collecting your pension.
If you did not have a spouse when you began collecting your pension, or if your retirement-date spouse dies, then your legal or common-law spouse on the date of your death will be entitled to a survivor pension.
Note: If your retirement-date spouse has died and you don’t want to see their name displayed on your statement, you can make a request in your myOMERS account using the secure communication feature and by providing a copy of their death certificate. Alternatively, you can send us your request by mail.
If you would like to update your spouse on record with us now, you can do so by contacting OMERS Member Experience.
Reminder: Your legal spouse or common-law spouse on the date of your death is entitled to a survivor pension.
OMERS collects information from your employer on an annual basis. As a result, the pension statement you receive this year reflects your information up to December 31 of the previous year.
This is the earliest date you can retire with no reduction to your pension. You may be able to retire before then with a reduced pension.
No, the amount is your contributions plus interest; however, your employer pays matching contributions.
When calculating your "best five" earnings we use your highest 60 consecutive months of contributory earnings. Therefore, if you only see (for example) 10 months in the first year, then you will see two months in the last year, which will complete your best 60 months.
We do not change enrolment dates when you purchase this type of service. However, the period of time between these two dates will be included in your total credited service.
Although we only record your hire date with your current employer, we keep track of all your service. Any service you had with a previous OMERS employer stays on our records, and is included in your pension entitlement.
There could be several reasons. The most likely is that you have worked for a previous OMERS employer. When you left, we would have mailed you an election form that outlined all of your termination options.
If you elected to transfer your pension benefit to your new OMERS employer, we would have merged your service from both employers together. It will appear as one total amount.
If you haven’t told us what you want to do with your pension benefit, the credited service you earned with your previous employer may not appear on your pension statement. If this is your situation, please contact OMERS Member Experience – we automatically merge your service if possible.
Your personal pension statement is posted on your secure myOMERS account. Or, you can contact OMERS Member Experience and request a copy.
Certain income – such as overtime pay – is excluded from the contributory earnings your employer reports to us. If there’s another reason why earnings on your Pension Report aren’t correct, please contact your employer.
The Retirement Income Estimator online at myOMERS provides you with an estimate based on your personal information.
Your milestone dates (your early and normal retirement dates) are provided for you, or you can pick other dates you have in mind. You can also take your estimate a step further and add in income from personal savings, CPP and OAS, and then get a snapshot of your estimated net (after tax) income before and after retirement. The Retirement Income Estimator produces exactly the same estimate that you would get if you requested one by contacting OMERS or your employer – and it takes just a few minutes!
If you would still like to speak to someone, please contact OMERS Member Experience.
Your estimate is the gross amount (before tax).
Not necessarily. Your pension will be based on the reported financial information provided by your employer at the time of your retirement.
Yes. There is no link between CPP and the OMERS bridge benefit.
No, OAS does not affect your OMERS pension.
Currently, a member can buy back prior service at any time after rejoining the Plan.
Effective January 1, 2020, the buy-back change establishes a five-year waiting period between the time a member receives a commuted value of their pension and the time they can buy back service associated with that prior commuted value transfer, if they rejoin the Plan.
This Plan change impacts individuals who re-enrol as members of the Plan on and after January 1, 2020 and who previously transferred the value of their pension (i.e., the commuted value) out of the Plan.
Any member who joins the Plan on or after January 1, 2020 and who previously transferred their commuted value out of the Plan will have to wait five years from the date of their commuted value transfer before being able to buy back service associated with that commuted value.
This Plan change does not apply to members who previously transferred their commuted value out due to a shortened life expectancy or transfers to another registered pension plan under a reciprocal transfer agreement or arrangement.
The Plan change is the result of an annual decision-making process intended to keep the Plan meaningful, affordable and sustainable. This change will limit the use of certain Plan provisions that could give a few members an unintended benefit at the expense of the entire Plan membership.
No.
No, this is a transfer, not a buy-back. Members who rejoin the Plan and elect to transfer funds to the Plan directly from another pension plan with the purpose of establishing service in the Plan are not affected by this Plan change.
No, the buy-back waiting period only applies to OMERS service associated with a commuted value transfer. All other service that is eligible to be purchased can be done immediately upon re-enrollment in the Plan.
No. In all cases, a consistent rule will be applied.
Dual membership most often occurs when a member is employed and enrolled in the OMERS Plan with more than one employer at the same time. For example, this can occur when a member holds two part-time positions at the same time with two different OMERS employers or where a member’s termination of employment date with their former OMERS employer is after their enrolment date in the OMERS Plan with their current employer. The periods of overlap may include periods where the member is not actively reporting to work with one of their OMERS employers but is continuing to be paid or is otherwise still formally employed (e.g., a member taking the remainder of their paid vacation time at the end of their employment or receiving a salary continuance).
Dual membership may also occur when a member works in two distinctly different positions for the same employer and these positions are reported to OMERS as eligible for separate memberships.
Dual members have separate OMERS memberships. This means that once they terminate employment with their OMERS employers, they will have separate benefits calculated under the OMERS Plan based on the credited service and contributory earnings on each record (i.e., the contributory earnings and credited service cannot be combined). Service with all OMERS employers will be counted on each record for the purposes of determining early retirement eligibility.
Note that dual membership records generally cannot be combined even if a member ends employment with one of their OMERS employers.
The dual membership change took effect on January 1, 2020 and affects the timing of a member’s ability to commence receipt of their pension entitlement. Dual members are required to terminate all continuous full-time employment relationship(s) before being eligible to commence a monthly pension.
The Plan change applies to all dual members, and councillors who continue in a continuous full-time employment relationship after terminating their councillor membership.
This change impacts you if:
You are a dual member; and
You continue in a full-time position with another OMERS employer after terminating employment with another OMERS employer.
This Plan change takes effect on January 1, 2020.
As of January 1, 2020, dual members will not be able to begin their pension while continuing in a full-time position with an OMERS employer.
This change does not impact you if you are a dual member and you commence receipt of your pension before December 31, 2019.
For more information on how the dual membership change affects councillors, please contact us at 416.369.2444 or 1.800.387.0813.
The Plan change is the result of an annual decision-making process intended to keep the Plan meaningful, affordable and sustainable. This change will limit the use of certain Plan provisions that could give a few members an unintended benefit at the expense of the entire Plan membership.
The Plan change does not affect a member’s accrual in the Plan. The Plan change affects the timing of when a pension can begin to be paid from the Plan. Depending on when a member starts his or her pension, a member’s accrued pension in the Plan may change (e.g., a later retirement could result in a larger pension).
The Plan change only applies to dual members who continue to be active under a continuous full-time (CFT) membership.
Members who terminate their other membership and elect to start a pension while at the same time continuing in a second OTCFT membership will be deemed to have been terminated in the second membership despite ongoing employment (i.e., they will stop contributing to the Plan). This will allow them to collect the pension associated with their other membership.
No, the Plan change does not apply to the Additional Voluntary Contributions (AVC) program.
No. In all cases, a consistent rule will be applied.
Many members of the OMERS Plan receive wages that are set by collective agreements. From time to time, the bargaining process may result in retroactive pay (also sometimes called “back-pay”) owing to members. As a result, OMERS has an established process to collect OMERS contributions from retroactive payments and reflect any required changes to an impacted member’s pension record for the years that the payments relate to.
OMERS will generally follow our normal processes for adjustments to pension records when lump sum payments of retroactive pay are issued to members.
We understand that this is an important issue for many of our members and OMERS is working to ensure all adjustments can be made as soon as possible once information about the retroactive payments is received from OMERS employers. We are working closely with employers to make this as seamless as possible.
We anticipate adjustments will begin as early as fall 2024 for inactive members (i.e., retired members who have started their OMERS pension or deferred members who have not started collecting a pension).
For members who are still working for an OMERS employer, updates will be made between January 1 and June 30, 2025, as information is received. These adjustments will be reflected in the annual statements that working members receive in 2025 (typically in the spring and summer).
OMERS has been in close communication with participating employers regarding the reporting of payments related to Bill 124, including payments that are made in instalments. To streamline the process, we have asked employers to send Bill 124 retroactive payment information once all payments have been paid. Once we have all the required information, we can adjust member records.
OMERS will prioritize required adjustments to the pension records of those who are receiving a monthly pension payment (this includes retirement pensions, disability pensions and survivor pensions). Once a retroactive payment is issued, a change in contributory earnings may result in a change to the monthly pension being paid and this will be determined on an individual basis.
Similarly, if you terminate employment with your OMERS employer after retroactive payments are issued (including to retire), you will also have your OMERS records adjusted following the end of your employment. This will be done on a priority basis to ensure you receive the correct pension options.
OMERS contributions will be collected when you receive your retroactive payment. Your financial information for 2024, including the retroactive payment, will be reported to OMERS in 2025 and we will send you your 2024 Pension Report with your updated pension information. Pension Reports are typically sent in the spring.
If you have questions about a retroactive payment, please contact your OMERS employer and/or union.
OMERS will work directly with employers to manage the adjustments process. You should ensure OMERS has all of your updated information on file – including address information, electronic communication preferences and banking information if you are retired. The easiest way to do this is through your myOMERS account.
It’s the estimated amount of money you would have to put aside today, to grow with tax-sheltered investment earnings, to provide you with a future benefit similar to the OMERS pension you’ve earned. If you take a commuted value, you take on the investment risk. If you leave your money with OMERS, you will have guaranteed income for life.
It’s the maximum you can transfer tax-sheltered. The maximum transfer value is set by the federal government and based on your age and the amount of your pension.
If your commuted value is greater than the maximum, OMERS will pay the excess to you in cash, and you will pay income tax on this amount. OMERS withholds tax on the amount over the maximum at the following rates:
$0 to $5,000.00 – 10%
$5,000.01 to $15,000.00 – 20%
Over $15,000.00 – 30%
The amount in excess of the maximum is considered employment income in the year it is paid.
Your commuted value estimate is the gross amount (before tax).
Yes. The commuted option is only available until your early retirement birthday. On/after your early retirement birthday, you are eligible for retirement options – you can retire and begin your OMERS Plan pension – but the commuted value option is no longer available.
No. You’ll be required to withdraw the full balance of your AVC account if you take your money out of OMERS. You can keep your AVC account if you keep your pension with OMERS.
If you wish to estimate the termination benefits you would receive from the OMERS Plan, effective January 1, 2023, you can request only two estimates of these benefits in each calendar year. After reaching this limit you may request a new benefit estimate after January 1st of next year, if eligible.
OMERS limits the number of termination estimates that you can request in order to allow you to give thoughtful consideration as you plan for your future termination.
Planning for your termination is a personal decision and one that should be given serious consideration. We suggest speaking to a licensed independent financial advisor regarding any future financial planning.
OMERS termination estimates are available to you and can be requested anytime during the year so long as you have not exceeded the two-estimate limit for that calendar year.
Important: OMERS termination estimates can only be completed for a termination date in the month that the request is made. OMERS is unable to calculate a termination estimate for a date that is in the past or that is beyond the end of the current month in which the request is made.
A termination estimate is not guaranteed. Your actual OMERS benefit can only be determined at the time you terminate employment with your OMERS employer. If you are eligible for a commuted value (CV) transfer at the time you terminate employment with your OMERS employer, the CV of your OMERS benefit will be determined at your termination date using the prevailing interest rates and actuarial assumptions in effect at that time. If applicable, this will result in a CV that is different than your estimate and the CV could be significantly higher or lower than the estimate.
When you leave your OMERS employer, your employer will let us know and we will prepare and send you a package that outlines your options and how to apply.
Yes. Your OMERS pension will continue to remain secure and provide you with a future stream of OMERS Plan retirement income for life.
You can elect and begin to receive an early retirement pension the first of the month following your early retirement birthday. Depending on how many years you’ve been in the OMERS Plan, you’ll be entitled to either an unreduced pension or a reduced pension.
It’s the estimated amount of money you would have to put aside today, to grow with tax-sheltered investment earnings, to provide you with a future benefit similar to the OMERS pension you’ve earned. If you take a commuted value, you take on the investment risk. If you leave your money with OMERS, you will have guaranteed income for life.
No. The commuted value is an actuarial calculation and does not bear any direct relationship to your contributions, your employer’s contributions, or interest.
Your benefit will remain secure with OMERS as a deferred pension.
Currently, members who are eligible to take their CV when their employment terminates (i.e., under age 55/50) can choose the CV option as outlined on their pension option form at any time between their date of termination and the date that they first become eligible to start their pension (i.e., age 55/50).
The amended CV election places a limit on the amount of time eligible members have to elect to transfer their CV after they terminate employment.
The change affects two membership classes:
Active members who terminate their employment and are eligible to take their CV as a payment option.
Deferred members (as of August 23, 2017), who have not yet attained age 55/50, will have a final chance to elect to transfer their CV.
Members terminating employment who are more than 10 years from their normal retirement date receive the option to transfer the value of their deferred pension entitlement (i.e., the CV) out of the Plan in lieu of a monthly pension payment. The following members will receive the CV transfer option:
Members terminating employment prior to age 55 (for NRA 65)
Members terminating employment prior to age 50 (for NRA 60)
As of August 23, 2017, eligible active members who wish to receive a CV upon termination of employment have a one-time option to elect accordingly, and must make their election by the later of six months from the termination date and January 1, 2020. If an eligible active member terminates employment on or after January 1, 2020, the election must be made within six months of the termination date.
Deferred members (as of August 23, 2017) who have not yet attained age 55/50, will have a final chance to elect to transfer their CV. This process must be completed by January 1, 2020.
After the applicable time limit has expired, members can no longer elect to transfer their CV out of the Plan.
The Plan change is the result of an annual decision-making process intended to keep the Plan meaningful, affordable and sustainable. This change will limit the use of certain Plan provisions that could give a few members an unintended benefit at the expense of the entire Plan membership.
This change does not affect the existing window where a CV quote is valid. An active member who is close to their 55/50 birthday will continue to have six months to make their election.
No, the Plan amendment does not affect members’ monthly pensions.
No, the CV election change does not apply to the Additional Voluntary Contributions (AVC) program.
A member’s choice to pursue a different option can impact their subsequent ability to choose differently later. The time period continues to apply regardless. The answer depends on whether the member is still within the applicable time period:
For active members (under age 55/50) who terminate employment on and after August 23, 2017, they may use the CV option if they are still within six months of the date of their termination or they make the election before January 1, 2020.
Deferred member (as of August 23, 2017) who are provided with a final chance to use the CV option, must elect within the time frame specified on their election form.
As of January 1, 2020, members must be within six months of the date of their termination of employment to use the CV option.
No. In all cases, a consistent rule will be applied.
If you don’t see a spouse on record on page two of your pension statement or in your myOMERS account, don’t worry. Whether we have your spouse information on our records or not, their eligibility for a survivor pension is always reviewed and confirmed by OMERS, as required under legislation. By updating records with us in advance, it will ensure that we can more quickly identify your spouse and proceed with steps required to determine their eligibility for a survivor pension.
If you don’t have a spouse on record with us yet – or if you do but it needs to be revised – you can easily update your spousal information in your myOMERS account or by contacting OMERS Member Experience.
When you retired, we may not have collected information about your spouse at that time. If you would like to update your spouse on record, you can do so by contacting OMERS Member Experience.
Reminder: Your legal spouse or common-law spouse on the day you began collecting your pension is entitled to a survivor pension after your death.
OMERS refers to this person as your retirement-date spouse. The entitlement of your retirement-date spouse to your survivor pension does not change (unless they formally waive their entitlement), even if your relationship status with them has changed through separation or divorce after you began collecting your pension.
If you did not have a spouse when you began collecting your pension, or if your retirement-date spouse dies, then your legal or common-law spouse on the date of your death will be entitled to a survivor pension.
Note: If your retirement-date spouse has died and you don’t want to see their name displayed on your statement, you can make a request in your myOMERS account using the secure communication feature and by providing a copy of their death certificate. Alternatively, you can send us your request by mail.
If you would like to update your spouse on record with us now, you can do so by contacting OMERS Member Experience.
Reminder: Your legal spouse or common-law spouse on the date of your death is entitled to a survivor pension.
When we become aware of the death of a member, we will prepare and send a package to the eligible survivors that outlines their options and how to apply.
A spousal survivor pension is payable for life (it does not stop if you remarry). A child’s pension is payable for as long as the child remains an eligible dependent child.
The first business day of each month.
None. Your OMERS survivor pension will not be affected by CPP or OAS.
Your OMERS survivor pension will stop when you pass away, unless there are eligible dependent children.
If there are no eligible children, OMERS will determine if there is a residual refund. If there is a residual refund, it will be paid to the named beneficiary on the member’s record.
In general, after approximately five years of receiving a pension, you would have received pension payments equal to the member’s contributions plus interest, and there would not be a residual refund.
Your survivor pension benefit is 66 2/3% of the member’s lifetime benefit.
No, OMERS does not offer health benefits.
You are no longer an eligible dependent child and your children’s pension ends (and does not restart).
The Member Handbook and Disability Benefits page summarize the eligibility requirements for disability benefits. If the medical review process results in a finding that you do not meet the applicable definition of totally disabled or totally and permanently disabled under the OMERS Plan terms, your time off work would still be available to purchase in accordance with the OMERS Plan terms. Leave purchases are facilitated through your OMERS employer. Please note that purchase deadlines apply and the cost may vary depending on the type of leave you are on.
Our physician may determine that you do not or no longer qualify for the OMERS disability benefit. This decision is based on their opinion that your illness/incapacity does not meet the OMERS definition of ''totally disabled'' or “totally and permanently disabled” at the relevant time. If you would like to appeal, you may send OMERS additional medical evidence for our physician to review in considering whether you are or continue to be eligible to receive a disability benefit.
Your disability claim will be placed on hold until OMERS receives medical information or receives a Forfeiting rights to disability benefits (Form 148) to close the claim. A decision is required from members regarding whether they will complete their application for disability benefits before any benefit can be paid out of the OMERS Plan. This means, for example, that when you are ready to retire, your pension payments may be delayed until you make a final decision regarding completing or withdrawing a disability claim.
No, if you have ended your employment with an OMERS employer (including by reason of retirement), you are not eligible to apply for disability benefits.
If your miss your medical documentation submission due date, your claim will be placed on hold until OMERS receives medical information for review. OMERS will review the medical documentation once you submit it. Please note that delaying the submission of required documentation can delay and complicate the administration of disability benefits. You are encouraged to submit all required documentation as soon as possible.
To qualify for OMERS disability benefits, a member cannot engage in any occupation for compensation or profit other than an occupation associated with an approved rehabilitation program with their OMERS employer, as approved by OMERS. If you are engaged in employment, you do not qualify for OMERS disability benefits and must notify OMERS as soon as possible.
No, OMERS is not responsible for any costs associated with either completing these forms or providing medical documentation to OMERS.
If you and your former spouse want to value the Plan’s benefit,
Statement of Family Law Value is the legal statement that provides this value. It is referred to as the Statement of Family Law Value (FLV).
To receive a Statement of FLV, there must be a complete Application for Family Law Family Law Form FL-1.
As the administrator of the Plan, OMERS prepares and provides the Statement of FLV and provides copies to both the member and the former spouse.
No. A common-law spouse of a member is not an eligible applicant. An eligible applicant includes a member or a former spouse who is/was legally married to the member.
No, the Retirement Income Estimator is not designed to perform these calculations.
Yes and no.
A former legally married spouse can apply for a Statement of FLV. A common-law spouse cannot. OMERS will provide the Statement of FLV to both the member and the former spouse (or designated contact person), regardless of who applied – this is a legal requirement.
The law requires the FSRA forms. Read more at Financial Services Regulatory Authority of Ontario. Please note that specific documents must accompany the forms to make the application complete.
Post-2011 rules apply if your court order, family arbitration award or domestic contract was signed or executed on or after January 1, 2012. The date your pension started is not a factor. However, membership status (active, former, or retired), at the separation date (FLV Date) will determine how the FLV is calculated and the payment options if your FLV is divided as part of an equalization payment.
No, the application for the Statement of FLV is not mandatory.
No, you or your former spouse who is/was legally married to you can apply at any time. However, you may want to seek independent legal advice in regards to other factors which may be affected by the timing of your application.
No. It means that that you (the member) must initiate the process by applying for the Statement of FLV from OMERS. Once you apply, a common-law former spouse is treated the same as a legally married former spouse for the purpose of a Statement of FLV.
After a Statement of FLV has been issued, the common-law former spouse can apply for a transfer or division from the OMERS Plan.
If both yourself and your former spouse are Plan members and wish to receive a Statement of Family Law Value for each of your pensions, you will need to submit separate Statement of Family Law Value applications in relation to each individual.
You must submit the Application for Family Law Value Family Law Form FL-1. It is very important that it is submitted accurately and completed in order to not delay the process.
Please see FSRA's website for a video tutorial and further information on how to complete the Application for Family Law Value Family Law Form FL-1 as well as other forms used in the process.
In addition to the Application for Family Law Value Family Law Form FL-1, submit one of the following documents as proof of the start date and separation date of the spousal relationship.
Joint Declaration of Period of Spousal Relationship (Appendix A - Joint Declaration of Period of Spousal Relationship);
Certified copy of a court order, family arbitration award or domestic contract;
Certified copy of a marriage certificate can be used as proof of the starting date of the spousal relationship; or
Appendix B - Request for Two Family Law Values
Important! The proof of start date and separation date of the spousal relationship must match what you submitted in the Application for Family Law Value Family Law Form FL-1.
In addition to the proof of spousal relationship dates which must be submitted with your Application for Family Law Value Family Law Form FL-1, you must submit copies of you and your former spouse’s proofs of age (e.g., birth certificate). Certified original documents are not required.
The first Statement of FLV issued to you and your former spouse will be provided at no cost. Any subsequent applications made by you or your former legally married spouse will cost $600 per Statement of FLV.
Note: If you request a Statement of FLV for more than one date, the first statement issued will be provided at no cost, the second date, however, would cost $600.
Make the cheque payable to the "OMERS Administration Corporation."
The $600 fee paid is not considered a contribution to the Plan and it is not tax deductible. OMERS can issue a receipt, but the receipt will state that this is not a Plan contribution.
If you and your former spouse have not agreed to or determined your FLV Date, fill out Appendix B - Request for Two Family Law Values.
If you and your spouse later decide to apply for a transfer or division from the OMERS Plan, one FLV Date must be confirmed. That date must correspond with one of the dates on Appendix B - Request for Two Family Law Values.
Submit one Statement of FLV application to OMERS. While only one application is required, two Statement of FLV packages are provided.
Yes, regardless of who applies OMERS is required to send copies to both the member and the former spouse.
Yes, if you would like a third party (e.g., lawyer) to act on your behalf, please complete the c/o section in Part C for the Plan member or Part D for the Plan member's spouse of the Application for Family Law Value Family Law Form FL-1.
Send your application for the Statement of FLV and required documents to:
OMERS 900-100 Adelaide St W Toronto, ON M5H 0E2 Canada
Important! To avoid delays, be sure to include all required forms, documents and a cheque to cover the cost of the fee (if applicable).
The 2012 rules specifically refer to an amount calculated by OMERS and reported on the Statement of FLV. While you are not prevented from getting a second opinion at your own expense, OMERS cannot accept a third-party valuation as a basis for OMERS FLV valuation.
OMERS determination of the FLV will comply with legal requirements. If you believe that the information used in the calculation of the FLV is incorrect, contact OMERS.
If you purchased service in the OMERS Plan during your spousal period (based on the date funds were deposited), it will be included as part of the benefit earned during spousal period even if the actual time period of service purchased did not occur during the spousal period.
If your credited service increased due to an omission period, it will only be included as part of your FLV if the dates that the omission occurred fell within your spousal period.
The pension valuation for marriage breakdown is the process to calculate the FLV. OMERS uses a method that involves using contributory earnings and credited service (as at the FLV Date), legally required assumptions and the terms of the OMERS Plan to calculate the FLV through a formula set in the law.
The assumptions used are disclosed on the Statement of FLV. The FLV must be calculated according to requirements established by the law so the methods and formulae are standardized.
If you transferred service in through a reciprocal or divestment transfer agreement, the service is included if it occurred during the spousal period despite when it may have been transferred. Note: service that is not transferred in under one of these agreements is treated the same as a purchased leave or buy-back.
No. If you were active at your FLV Date and your former spouse is eligible for a lump sum transfer the amount must be transferred to a locked-in retirement account (LIRA), a life income fund (LIF) or another registered pension plan (RPP) within Canada.
No, there is no time limit to apply for the division of the member’s pension. However, it is important to keep in mind that the member’s pension can be reduced by more than 50% if arrears are applicable.
No, there is no time limit to apply. However, if a member’s circumstances change, the amount available for transfer may be affected. For example, if a member retires and starts collecting their pension, the amount available to transfer from OMERS to the former spouse will be less than the FLV amount quoted on the Statement of FLV. This is because the member was in receipt of a pension that did not factor in any payments that could have been made to the former spouse. The difference between the FLV amount quoted and the amount that OMERS can pay is outside of OMERS, and between the member and his or her former spouse.
If the settlement between you and your former spouse requires OMERS to transfer or divide the Plan benefit (as applicable), the following must be submitted to OMERS:
If a Statement of Law Value was issued to you and your former spouse:
Application to Spouse's Application for Transfer of a Lump Sum Family Law Form FL-5
Certified copy of a court order, domestic contract or family arbitration award (as applicable) executed on or after January 1, 2012, under the Ontario, Family Law Act that provides for a division of the Plan benefit
Direction to administrator form
If a Statement of Family Law Value Retired Member with a Defined Benefit Pension Family Law Form FL-5 was issued to you and your former spouse:
Application to Spouse's Application to Divide a Retired Member's Pension Family Law Form FL-6
Certified copy of a court order, domestic contract or family arbitration award (as applicable) executed on or after January 1, 2012
Form 157 – Claim for former spouse pension
You can use the funds to buy back service (if you have credited service to buy back). Learn more about maximizing your pension through buy backs.
You can also transfer the funds to an Additional Voluntary Contributions (AVC) account. AVCs are an exclusive savings opportunity for OMERS members. AVCs do not increase your OMERS pension.
Yes, OMERS requires the entire document.
No, to transfer or divide your OMERS pension, OMERS requires a court order issued by the Ontario Superior Court or the Family Court of the Ontario Superior Court. Alternatively, you can execute a domestic contract or a family arbitration award executed under the Ontario Family Law Act in place of a court order.
Yes, a divorce granted outside of Ontario has no impact in regards to your application.
Dual members must address each membership separately in their legal documents and Spouse's Application for Transfer of a Lump Sum Family Law Form FL-5 or Spouse's Application to Divide a Retired Member's Pension Family Law Form FL-6. Clear direction for the division of pension for each membership must be provided.
OMERS provides “Next Steps” instructions with the Statement of FLV.
If an amendment has been made to your legal document pertaining to your pension prior to a transfer or division, submit certified copies of the amended documents.
A “certified copy” is a copy of the original document with the signature and official stamp of an appropriate authority indicating that they have viewed the original document and that the copy they are signing is a true copy.
Please be advised that OMERS will only accept certification of court orders, arbitration awards, separation agreements or other domestic contracts by the following individuals:
Lawyer
Commissioner of Oaths
Notary Public
Yes, OMERS will accept a separation agreement because it is a domestic contract. There are three types of domestic contracts: marriage contract, cohabitation agreements and separation agreements
Separation agreements are the most common type of domestic contract negotiated between couples. Any court order, family arbitration award or domestic contract submitted to OMERS will need to be a certified copy in order to be accepted for the purpose of your FLV application.
No, it's not allowed under the Income Tax Act and the OMERS Plan’s provisions.
No, your retirement eligibility for both your normal retirement date and earliest unreduced retirement date will not change as a result of a division. The service you have accrued in the Plan remains the same for eligibility purposes.
No, OMERS cannot provide you an estimate of the impact to your pension. You have to apply for a Statement of FLV and, if you go through with the division, OMERS will provide a Marriage Breakdown Supplement to your Pension Report. This supplement will disclose the ongoing pension carve out taking into account the FLV transfer out payment.
No, the division will not affect your "best five" earnings.
Yes, starting in 2024 the amounts shown on your Pension Report will be reduced to reflect the amount that has been carved out.
Prior to 2024, the amounts shown on your Pension Report did not reflect the carve out and affected members received a Marriage Breakdown Supplement.
Yes, whether the division is affected through a lump-sum transfer or split of the pension payments, your pension will be adjusted and reduced to account for the value paid out to your former spouse.
Yes, your former spouse can waive their right to a survivor benefit by completing a Post-retirement Waiver of Survivor Pension After Separation (Optional) Family Law Form FL-8.
Read more about the requirements here.
If you and your former spouse were married; and
not living separate and apart at your retirement date; or
your former spouse did not waive their entitlement to survivor benefits within the 12-month period prior to your retirement date;
your former spouse will get a survivor pension for the remainder of their life.
If you were in a common-law relationship, in addition to the criteria above, your former common-law spouse will be eligible for survivor benefits;
provided you and they were not living separate and apart at your retirement date and had a spousal relationship for a period of not less than three years before your retirement date; or
you were in a relationship of some permanence at your retirement date, if you were parents of a child as set out in section 4 of the Children’s Law Reform Act.
If you pass away before your former spouse and they are not your retirement-date spouse, there are no further benefits payable following your death.
Normally, your pension will be restored to its full amount. However, if the legal document provides for it, payments can continue to be paid to your former spouse’s estate.
The 35-year cap puts a maximum of 35 years on the member's credited service.
Once the cap is reached:
The member stops making contributions to the Plan and stops accruing credited service, even if he or she continues to work for an OMERS employer.
The member’s employer also stops making matching contributions.
To calculate the member’s pension, OMERS uses the 35 years of credited service the member has accrued and the member’s “best five” years average earnings (including any earnings received after the date the member reached the cap). This means that a member who is subject to the 35-year cap could still see an increase to his or her annual pension amount, if the member’s “best five” earnings increase after the date the member reaches the cap.
This plan change takes effect on January 1, 2021. A member’s credited service will not be capped, provided the member has less than 35 years of credited service on December 31, 2020. In that case, the member and employer will continue to make contributions, and the member will continue to earn credited service for as long as he or she is employed by an OMERS employer.
For a member who has already earned 35 years of credited service on December 31, 2020, the 35-year cap remains. The maximum amount of credited service the member can accumulate is 35 years, even if he or she continues to work past 35 years. In other words:
a member who will have earned 35 years of credited service on December 31, 2020, will continue to be subject to the 35-year cap; and
a member who will have earned less than 35 years by December 31, 2020, will not be subject to the 35-year cap.
The 35-year cap was removed as a result of the Comprehensive Plan Review conducted by the OMERS Sponsors Corporation throughout 2018.
Removing the cap helps to address the needs of long-service members who want to work beyond 35 years. By earning more credited service, members will increase their lifetime pensions.
Yes. If a member who is not subject to the 35-year cap works beyond 35 years, he or she will continue to earn more credited service. The more credited service years in the Plan, the larger the member’s lifetime pension.
The change took effect on January 1, 2021. A member’s credited service will not be capped if he or she has less than 35 years of credited service on December 31, 2020. The member and employer will continue to make contributions, and the member will continue to earn credited service for as long as he or she is employed by an OMERS employer.
No, members who are capped at 35 years will no longer make contributions to the Plan, accrue credited service or be able to purchase service over and above 35 years.
No. In all cases, a consistent rule will be applied: a member who will have accrued 35 years of credited service prior to January 1, 2021 will always be capped at 35 years of credited service. Members with less than 35 years of credited service prior to January 1, 2021 are required to make mandatory contributions beyond their 35th year, and their OMERS employers will match those contributions.
Most members in the OMERS Plan have an NRA 65. Members who are police officers, firefighters, or paramedics (including those employed in an eligible role by a participating association) are eligible to have an NRA 60.
When an eligible member’s NRA is changed from 65 to 60, an adjustment is applied in most cases to the member’s credited service to reflect the NRA 60 early retirement benefits.
Effective June 21, 2023, the service adjustment calculation will be based on the lowest of the following three percentages:
25% if the member is under age 60 or, if the member is age 60 or more, 5% multiplied by each year between the member’s age and age 65;
The percentage resulting from an actuarial equivalence calculation that uses the same actuarial basis used to determine the conversion cost (described below); and
The percentage resulting from an actuarial equivalence calculation that uses a commuted value basis (taking into account the commuted value of the member’s benefit immediately before and after conversion).
As explained above, NRA 60 is only available to OMERS members in certain occupations – police officers, firefighters and paramedics. The change described above only impacts an active member of these groups if they have an NRA conversion from age 65 to 60 on or after June 21, 2023.
The amendment also does not impact any member who had an NRA 65 to 60 conversion prior to June 21, 2023.
The OMERS Plan permits an OMERS employer to elect to provide NRA 60 benefits for all or a class of its police, firefighter, or paramedic employees that participate in the OMERS Plan. NRA 60 benefits are not automatically provided by OMERS, and for unionized employees, NRA 60 benefits can be subject to negotiation between employers and unions.
For more information, visit the Normal Retirement Age Changes (Police, Firefighters and Paramedics) page and refer to the comprehensive Q and As.
NRA conversions typically occur if an employer elects for a class of eligible members to have an NRA 60, which can be subject to bargaining. It may also occur if a member switches jobs and moves to an employment class with an OMERS employer that already has NRA 60.
Yes, but individual circumstances might still mean that their early retirement pension may be reduced if they retire from employment prior to age 60. For example, a member may or may not have enough OMERS service to qualify for an unreduced pension.
For more information on early retirement, see the Member Handbook or visit the Normal Retirement Age Changes (Police, Firefighters and Paramedics) page.
The 2025 NRA 60 contribution rates for each pay period are:
9.2% up to the CPP earnings limit; and
15.8% over the CPP earnings limit.
Note: 2025 CPP earnings limit is $71,300.
The current contribution rates will be adjusted on January 1, 2027. See omers.com for more details.
Credited service is reduced in accordance with the service adjustment calculation described above because the member is now entitled to retire with a normal retirement pension five years earlier than if they had an NRA of 65. After their NRA changes, OMERS will send the member information about the impact to their credited service and the cost to buy the service adjustment (i.e., the conversion cost).
The conversion cost to by the service adjustment generally reflects the difference in the actuarial present value of the member’s benefit at his or her earliest unreduced retirement date as an NRA 60 member and NRA 65 member. It is based on a number of variables, including the member’s age, contributory earnings and the actuarial assumptions and interest rates in effect at the time the calculation is performed. A change to any of these variables may increase or decrease the conversion cost.
No, this is optional. A member can buy none, some, or all of the service adjustment; however, having more credited service on the member’s OMERS record entitles the member to a larger benefit under the OMERS Plan.
Eventually, yes if the member continues to be an active OMERS Plan member. Initially, the cost will increase as the member approaches the age they become eligible for an unreduced NRA 60 pension. Typically, it will decrease and reduce to zero around the age of eligibility for an unreduced NRA 65 pension.
Buying the service adjustment prior to the conversion cost reaching zero can increase the member’s benefit should any unexpected circumstances arise before the conversion cost starts to decrease (e.g., termination of employment or death).
For more information and examples, visit the Normal Retirement Age Changes (Police, Firefighters and Paramedics) page.
Each conversion cost is valid for 6 months. After the expiration of a conversion cost, an updated conversion cost can be requested by a member and the new conversion cost could be higher or lower. The purchase of the service adjustment must be completed while still an active member of the Plan.
No. The election to make the purchase is irreversible. There is no refund of the purchase for NRA 60 members, including if the member continues to be an active member and work to a point where the conversion cost would have otherwise reduced to zero or reduced to below what they paid.
This change extends leave purchase deadlines by one year for members returning to work in 2020, 2021 or 2022. For example, a member who returns from their leave in 2020 would have until December 31, 2021 to complete the purchase of their leave. With this change, the member’s leave purchase deadline has been extended to December 31, 2022.
Given the continuing challenges and uncertainty brought about by the COVID-19 pandemic, extending the deadline to purchase a leave of absence provides members with more time to evaluate and purchase their leave period which may alleviate current financial pressures.
I am a member who returned from a leave of absence in 2019. No change. The deadline to complete the purchase of your leave of absence is December 31, 2020. I am a member who returned from a leave of absence in 2020. The deadline to complete the purchase of your leave of absence is extended from December 31, 2021 to December 31, 2022. I am a member who will return from a leave of absence in 2021. The deadline to complete the purchase of your leave of absence is extended from December 31, 2022 to December 31, 2023.
I am a member who will return from a leave of absence in 2022. The deadline to complete the purchase of your leave of absence is extended from December 31, 2023 to December 31, 2024. I am a member who will return from a leave of absence after 2022. No change. The deadline to complete the purchase of your leave of absence is December 31 of the year following the year you return from your leave.
This extension applies to all leave purchases that are currently available (see Taking Time Off) provided you return from your leave in 2020, 2021 or 2022. This amendment does not extend the deadline for making an election for a service buy-back or the 30-day deadline for completing a service purchase for a member who has terminated employment.
Currently, under the Income Tax Regulations and the Plan text, members must have 36 months of employment with their employer to be eligible to purchase a period of reduced pay. This change places OMERS in a position to seamlessly adapt to any future change to the 36-month employment requirement under the Income Tax Regulations.
Given the increased occurrences of members with periods of reduced pay brought about by the COVID-19 pandemic, aligning the eligibility requirement with the Income Tax Regulations allows for the seamless administration of this leave in the event any changes to the Income Tax Regulations occur.
See below for changes that occurred for the years 2020 and 2021.
If there is a change to the eligibility requirement in the Income Tax Regulations to purchase a period of reduced pay: The required time you must be employed with your employer to be eligible to purchase a period of reduced pay in the Plan will automatically change to reflect the change to the Income Tax Regulations.
On July 2, 2020 the Department of Finance released draft regulations that set aside the 36-month employment requirement for periods of reduced pay in 2020. The Department of Finance subsequently extended these draft regulations on May 20, 2021 to set aside this requirement for 2021. The draft regulations have now come into force. This means that for 2020 and 2021, the 36-month requirement does not apply. If the Income Tax Regulations are not changed: No change. OMERS will continue to administer the Plan with the 36-month employment requirement.
A period of reduced pay is a temporary period where a member makes less pay because of a reduction in a member’s hours or days worked.
This change makes it possible for members to purchase a period of temporary layoff if the layoff was initiated in 2020, 2021 or 2022. Prior to this amendment, the Plan did not permit members to purchase absences from work related to a temporary layoff.
The cost to purchase a period of temporary layoff, if completed by the purchase deadline, would be two times the contributions that you would have made to the Plan based on your earnings before you were placed on layoff.
Given the increased occurrences of member layoffs brought about by the COVID-19 pandemic, permitting temporary layoffs as purchasable service supports members by allowing them to convert the absence into credited service, which would increase their pension and bring them closer to an unreduced early retirement pension.
If you are an active member of the Plan on or after June 24, 2020 and are absent from work due to a temporary layoff initiated in 2020, 2021 or 2022, you will be eligible to purchase the period of temporary layoff. If you were placed on a layoff in 2020 and your employment was subsequently terminated by you or your employer before June 24, 2020 (whether you started your pension, elected a deferred pension or transferred out the commuted value of your pension), you will not have the option to purchase the period of layoff. This means that your pension or commuted value (if applicable) will not be impacted by this change.
If your layoff was initiated before 2020, the temporary layoff cannot be purchased. However, if your layoff was initiated in 2020, 2021 or 2022, the date you return from your layoff would determine the deadline to purchase the layoff. If your layoff was initiated in 2020, and you returned from your layoff in 2020, then you have until December 31, 2022 to purchase the layoff period. If your layoff was initiated in 2020 or 2021, and you return from your layoff in 2021, then you have until December 31, 2023 to purchase the layoff period. If your layoff was initiated in 2022, and you return from your layoff in 2022, then you have until December 31, 2024 to purchase the layoff period. If your layoff was initiated in 2020, 2021 or 2022, and you return from your layoff after December 31, 2022, then you have until December 31 of the year following the year you return from layoff to purchase the layoff period. If your layoff was initiated after 2022, the temporary layoff cannot be purchased.
This change to the OMERS Primary Pension Plan (the OMERS Plan) removes the current eligibility rules so that all non-full-time employees, including those who are currently ineligible, could elect to join the OMERS Plan at any time after December 31, 2022.
Enrolment in the OMERS Plan would take effect in your employer’s next available pay period after your election has been received. This date can be no later than the end of the month following the month in which the election was received. Enrolment would remain in place as long as the member continues working with their current employer.
This change will not be implemented until January 1, 2023.
Your contributory earnings are your regular and recurring earnings in each pay period, excluding additional amounts such as overtime pay and most one-time and lump-sum payments.
Common examples of earnings that qualify as contributory earnings include:
Base pay (salary or wages)
Permanent increases to salary or wages
On-call pay
Sick pay (regular salary or wages)
Taxable benefits that are regular and recurring, such as a car allowance or life insurance premiums
Regular commissions
And more
Common examples of earnings that do not qualify as contributory earnings include:
Overtime pay
Non-taxable benefits and temporary benefits (such as temporary pay increases)
Certain types of payments made at the end of an employment relationship (such as a retiring allowance)
Lump-sum severance pay
Signing bonus
And more
If you have any questions about what qualifies as contributory earnings under the OMERS Plan, please get in touch with your employer.
You will receive your OMERS lifetime pension for life! Your OMERS bridge benefit is payable if you retire prior to age 65 until you reach age 65. Refer to the Retirement section of the OMERS Member Handbook for more information.
If you have any prior service with an OMERS employer, you may be able to add eligible service or purchase that time. This includes summer work or part-time work with an OMERS employer. For more information, see our Buying Service page.
You can increase your savings by investing in the OMERS Fund with Additional Voluntary Contributions (AVCs), similar to RRSPs. AVCs are administered as part of the OMERS Plan but separate from your OMERS pension.
There are two ways to contribute to an AVC account:
Transfer funds from a registered retirement savings vehicle, for example, an RRSP.
Automatic contributions by pre-authorized debit or payroll deduction through your employer.
See our Additional Voluntary Contributions page for more details and to see if AVCs are right for you.
Once you become a member, you remain in the OMERS Plan while you are employed with an OMERS employer even if your work hours or income decreases, or if your work status changes to or from full-time. It is important that you make an informed decision about electing to join the Plan because once you are enrolled, you cannot opt out.
An OMERS member who decides to leave employment with their OMERS employer can retire as early as age 55 for an NRA 65 member and age 50 for an NRA 60 member.
To find out more about retiring from the OMERS Plan, check out the Retirement section of the OMERS Member Handbook.
For more information, including an informative video about the process of enrolment in the OMERS Plan, visit our Non-Full-Time Employees page.
For pensions that are in pay based on benefits earned before January 1, 2023, each January, the eligible pension increases by 100% of the increase in the Canadian Consumer Price Index (CPI), up to a maximum increase of 6%. If the CPI increase is greater than 6%, pensions eligible for an inflation adjustment will increase by this 6% maximum and the excess (i.e., the applicable CPI increase above 6%) is carried forward for application in a future year when the CPI increase is less than 6%, provided the pension is still in pay.
CPI measures approximate changes in the cost of living based on the price of a basket of goods and services that an average Canadian household buys. The basket includes food, housing, transportation, energy, furniture, clothing and recreation. More information about the CPI is available on Statistics Canada's website.
Pensions in respect of benefits earned on or after January 1, 2023 are subject to Shared Risk Indexing (SRI).
Shared Risk Indexing (SRI) provides the option for the OMERS Sponsors Corporation (SC) Board, based on its annual assessment of the Plan’s health, to set future inflation increases on benefits earned on or after January 1, 2023.
Benefits earned before January 1, 2023 will be granted full indexation. Benefits earned on or after January 1, 2023 will be subject to SRI, meaning that the level of indexation is conditional on the financial health of the Plan.
In December 2022, the SC Board decided that the methodology to determine the annual inflation adjustment to pensions in pay would not be impacted by SRI in 2024 or in 2025. For more information on SRI and how it may impact inflation adjustments in years beyond 2025, please visit omers.com.
I retired before January 1, 2023:
Nothing changes
Your pension payments will not decrease if inflation is negative
Your pension will be granted full inflation increases every year, up to a maximum increase of 6%
I retired or will be retiring on or after January 1, 2023:
Your pension payments will not decrease if inflation is negative
The pension benefits you earned before January 1, 2023 will be granted full inflation increases every year, up to a maximum increase of 6%
The pension benefits you earn on or after January 1, 2023 will be subject to SRI, meaning the amount of the increase will be determined based on an assessment of the financial health of the Plan
I became a deferred member before January 1, 2023:
When you retire:
Your pension payments will not decrease if inflation is negative
Your pension will increase every year based on inflation, up to a maximum increase of 6%
I became a deferred member on or after January 1, 2023:
When you retire:
Your pension payments will not decrease if inflation is negative
The pension benefits you earned before January 1, 2023, if any, will be granted full inflation increases every year, up to a maximum increase of 6%
The pension benefits you earn on or after January 1, 2023 will be subject to SRI, meaning the amount of the increase will be determined based on an assessment of the financial health of the Plan
The SC Board decided to provide full CPI indexing to inflation adjustments granted on January 1, 2024 and January 1, 2025 for pension benefits earned on or after January 1, 2023 which are subject to SRI.
When you notify your employer of your retirement, your employer will let us know and we will prepare and send you a package of information that outlines your options and how to apply.
If you are no longer working for an OMERS employer, i.e., you are a deferred member, you will need to complete an Application for retirement pension (deferred members) form.
The pension shown on your Pension Options Form is the gross amount (before tax).
Your benefit will remain secure with OMERS as a deferred pension.
Yes, there is no link between CPP and the OMERS bridge benefit.
The RCA provides pension benefits, using the OMERS pension formula, which are above the maximum allowed for registered pension plans under the Income Tax Act. Benefits below this maximum are provided by the OMERS Primary Pension Plan.
Every member of the Primary Plan is automatically a member of the RCA. However, only a small fraction of members will contribute to or receive a benefit from the RCA. As an example, in 2018, a typical active member who retires would need to have a "best five" earnings of over $165,000 to receive some of their OMERS pension from the RCA.
Today, a member may only contribute to the Primary Plan and RCA together on the lesser of 150% of the member’s base annual compensation or seven times the year’s maximum pensionable earnings in a calendar year ($391,300 for 2018). It is these capped earnings that may form part of a member’s "best five" earnings. These earnings caps are relatively recent, and so a member may have contributed on uncapped earnings in previous years. In that case, the uncapped earnings may still factor into the member’s "best five" earnings.
RCA benefits only apply to post-1991 service credited through payroll deduction with an OMERS employer, as well as certain purchased leaves of absence (e.g., parental leaves).
No, you cannot purchase past service RCA benefits. Benefits payable in respect of purchased past service are only payable from the Primary Plan, and are subject to the applicable Income Tax Act maximums.
No, transfers into the RCA are not permitted.
Yes, your contributions to the RCA are tax-deductible in the same way as Primary Plan contributions. RCA contributions are combined with Primary Plan contributions and shown as “RPP Contributions” on your T4 slip.
No. Since payments are made separately, any tax withholding is determined separately.
The payment of RCA benefits is tied to how you choose to receive your benefit from the Primary Plan. If you terminate employment and choose to transfer your benefit from the Primary Plan, any RCA benefit would be paid out at the time of transfer. In this case, the full RCA benefit would be taxable in the year it is paid. On the other hand, if you terminate employment and choose to defer your Primary Plan benefit, the RCA benefit would also be deferred. Once you elect to start collecting your pension from the Primary Plan, you must also start collecting your pension from the RCA. In this case, you will receive separate payments from the Primary Plan and the RCA. Like the pension payment from the Primary Plan, the RCA pension payment would be taxable in the year it is paid. The features attached to Primary Plan, such as indexing and survivor benefits, are generally the same for the RCA.
Although there are pension-splitting rules in both cases, the Income Tax Act has different pension-splitting rules for retirement compensation arrangements (such as the RCA) than for registered pension plans (such as the Primary Plan). To split RCA income, the member has to be at least 65 years of age and the splitting is subject to maximums. Please see Canada Revenue Agency’s form T1032 for more information.
Since the RCA is not governed by the Pension Benefits Act, it is not administered like the Primary Plan for the purposes of post-2012 separation and divorce rules. OMERS does not make any payment from the RCA to a person other than to the member or their survivors. Therefore, the RCA benefit cannot be split at source in the same way as a defined benefit from the Primary Plan. It will be the responsibility of the member to pay their former spouse to complete any split of the member’s RCA benefit.
Find out more about the administration of pensions after separation and divorce.
The RCA is governed by the RCA’s terms and trust agreement, the OMERS Act, 2006 and the Income Tax Act. Unlike the Primary Plan, the RCA is not governed by the Pension Benefits Act and is not regulated by the Financial Services Commission of Ontario. Additionally, the RCA is not a registered pension plan under the Income Tax Act and is therefore not as tax efficient from a fund perspective as the Primary Plan.
Since the RCA is not subject to the Pension Benefits Act, benefits accrued under the RCA may be reduced either while the RCA is ongoing or on wind up. By contrast, since it is governed by the Pension Benefits Act, benefits accrued under the Primary Plan may not be reduced while the plan is ongoing. However, just like the RCA, in the unlikely event of a wind up, Primary Plan benefits may be reduced if net assets are insufficient to match the benefit liabilities.