In most cases, for NRA 65 to NRA 60 conversion, a service adjustment is applied to your credited service. Generally, past credited service is reduced to reflect entitlement to NRA 60 benefits. It is possible that some members may not have a service adjustment.
Effective June 21, 2023, the service adjustment calculation will be based on the lowest of the following three percentages:
25% if you are under age 60 or, if your age is 60 or more, 5% multiplied by each year between your age and age 65
The percentage resulting from an actuarial equivalence calculation that uses the same actuarial basis used to determine the conversion cost
The percentage resulting from an actuarial equivalence calculation that uses a commuted value (CV) basis (taking into account the CV of your benefit immediately before and after conversion).
It is possible that some members may not have a service adjustment. Specifically, if an NRA 65 member is eligible for an unreduced pension at the time of a conversion to NRA 60, the service adjustment is zero (as is the conversion cost). For example, if a member is age 55 or older and has 30 years of credited and eligible service or the 90 Factor (age + credited service + eligible service = 90) at the time of a conversion to NRA 60, the member qualifies for an unreduced NRA 65 pension and an unreduced NRA 60 pension. This means that no service adjustment is applicable.
The conversion cost 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 in effect at the time the calculation is performed. A change to any of these variables may increase or decrease the conversion cost.
A different conversion cost may be applicable to some members who have previously had an NRA 60 while participating in the Plan prior to their most recent NRA conversion.
The conversion cost to buy the service adjustment related to NRA 60 conversion will change as you get older.
Generally speaking, the conversion cost will increase as you approach the age you become eligible for an unreduced NRA 60 pension (i.e., as you approach age 60, the 85 Factor or 30 years of service). Then, the cost typically starts to decrease and will reduce to zero around the age you become eligible for an unreduced NRA 65 pension (i.e., when you reach age 65, the 90 Factor or 30 years of service).
It is also important to remember that each conversion cost amount you receive is only valid for six months. The conversion cost can go up or down and the changes can be significant based on the member’s age, contributory earnings, and prevailing actuarial assumptions and interest rates in effect at the time the conversion cost is determined.
Any outstanding (i.e., unpurchased) service reduction is automatically restored for a working member at the time the conversion cost has reduced to zero.
You can buy the service adjustment as long as you are a working member of the Plan (i.e., you are still working with your OMERS employer and making contributions).
If you retire or otherwise leave your OMERS employer and you still have a service adjustment on your record, you are given a final opportunity to buy it. This opportunity is not available to your survivors in the event of your death.
The service adjustment counts as eligible service, even if you don’t buy it.
You are encouraged to review the option to purchase the service adjustment carefully and seek independent financial advice to consider how your Plan benefit fits into your career journey and retirement plans.
Whatever you decide, note that each conversion cost you receive is valid for six months. If you do not make your election or pay for the service adjustment by the expiry date on the election form, you can contact OMERS Member Experience to request an updated conversion cost. The conversion cost can go up or down and the changes can be significant based on the member’s age, contributory earnings, and prevailing actuarial assumptions and interest rates in effect at the time the conversion cost is determined.
Personal cheque payable to OMERS (OMERS will issue a tax receipt for the payment received)
Transfer from an RRSP or LIRA
Transfer from another registered pension plan (RPP)
Withdrawal from your OMERS Additional Voluntary Contributions (AVC) account
Judd is working for a local municipality when he becomes a paramedic and his NRA changes from 65 to 60. He is 45 years old and has 21 years of credited service in the Plan at the time of this NRA conversion.
Jane is a civilian working for the local police board and participates in the Plan as an NRA 65 member. Jane becomes a police officer and her NRA changes from 65 to 60. At the time of NRA conversion, Jane is 40 years old and has 11 years of credited service in the Plan.
Get more information about NRA 60, NRA 65 and NRA conversion.
Learn about the lifetime pension formula and early retirement.
Learn how to start preparing for this next chapter in life.