Pension payments are paid in equal monthly instalments at the beginning of the month. If you have direct deposit set up, your payment will arrive on the first banking day of the month.Â
Most major Canadian banks will have the payment in your account the same day, while credit unions and non-traditional banks may take an extra day or two. Pension cheques are mailed to arrive at the beginning of the month.Â
Once you or your employer has informed OMERS of your planned retirement, you will be notified when you can begin the retirement process in myOMERS.
Watch this video for a step-by-step guide on completing the process in myOMERS
OMERS will not be notified until your final payroll has been processed, which often results in receiving the information a few weeks after your actual retirement date.
If you are owed a pension payment for a prior month based on when we received information from your employer, you may receive your first payment sooner based on our weekly payment schedule.
To ensure you’re prepared, have your banking information ready for entry in myOMERS.
See our Getting Ready to Retire guide for helpful information on what you need to do to start receiving your OMERS pension
Pension payments by direct deposit are automatically deposited into your account on the first banking day of the month. This isn't always the first day of the month; it could be the first day banks are open after a weekend or holiday.
We can make direct deposit payments to most banks and financial institutions in Canada, the U.S. and the U.K.Â
If you receive your pension in Canadian dollars, your 12 monthly pension payments in any year will be the same. Pensions paid in U.S. dollars or U.K. pounds may fluctuate depending on your bank’s exchange rate. If your payment is not in your account by the first banking day of the month, please contact your bank or OMERS Member Experience.Â
If you are currently receiving pension payments by cheque and would like to start receiving them by direct deposit, complete one of the following options below:Â
Add your direct deposit information in myOMERS orÂ
Send the appropriate form to OMERS via mail:Â
Submit Form 107 – Changing Deferred Member Information and fill out the banking information section or include a void cheque
For a bank account in the U.S., submit Form 191 – U.S. Direct Deposit Request
For a bank account in the U.K., submit Form 193 – U.K. Direct Deposit Request
For your protection, OMERS cannot make changes to your banking information by email.
If you are a registered myOMERS user, you can change your banking information online
Tip:Â Keep your old account open until the deposit actually goes into your new account, in case we don't receive your new information in time for your next monthly payment.
When you retire, you may be eligible for certain tax credits and deductions, such as HST credits and the federal age amount tax credit (once you turn 65).Â
The tax withheld from your OMERS pension is based on your monthly pension payments, the federal and provincial income tax forms (TD1) or country of residence information OMERS has on file for you, and any additional tax that you asked us to withhold.
To update your federal and provincial income tax information, complete and send OMERS the TD1 forms.
Withdrawing retirement income from a Registered Retirement Income Fund (RRIF) or other plan, combined with your pension income, could impact your eligibility for government programs such as age credits, HST credits, the Guaranteed Income Supplement (GIS) and more. Speak with a financial planner to help you prepare for retirement and follow our pre-retirement checklist.
You can view and print your tax slip directly in your myOMERS account. OMERS will also send you a tax slip for your pension (retirement, survivor or disability pension) by the end of February each year. The tax slip is your official proof of income for tax purposes. It shows the total amount of pension paid to you during the previous calendar year and the total tax deducted. Tax slips are mailed to your principal home address.Â
If you reside in Canada, we will mail a T4A slip to your home address.Â
If you reside outside Canada, we will mail an NR4 slip to your home address.Â
If you haven’t received your tax slip by early March, contact OMERS Member Experience. We will confirm your mailing address and send you another slip. If you have a myOMERS account, you can access your T4A tax slips online.Â
If part of your pension is paid from the OMERS Retirement Compensation Arrangement (RCA), we will send you separate tax slips for the portion paid from the OMERS Primary Plan and the portion paid from the RCA.
If OMERS pays a portion of your pension directly to your former spouse, we will send them a tax slip for the amount paid. That amount will not appear on your tax slip, as it’s not part of your OMERS pension income.Â
If you have arranged to pay your former spouse yourself (without OMERS involvement), your full OMERS pension income will appear on your tax slip.
Under the Income Tax Act, income tax is withheld from your OMERS pension. You can also arrange to have OMERS withhold additional tax from your monthly payments. For example, if your total income puts you into a higher tax bracket, increasing the tax at source may help you avoid a big bill when you file your taxes for the year. We recommend discussing your overall tax situation with a tax adviser and reviewing information published by the Canada Revenue Agency.Â
You can request to change the additional amount of tax withheld from your monthly pension payments by:Â
Logging in to your myOMERS accountÂ
Completing and submitting Form 107 – Changing Deferred Member Information to OMERSÂ
If you receive more than one OMERS pension (e.g., from the OMERS Primary Plan and the RCA), you will need to submit separate tax requests for each pension.Â
If you receive a retroactive payment, which is a previous monthly pension payment that you are entitled to (usually paid as a lump sum), it will likely be taxed at a higher rate than monthly pension payments. The tax on monthly payments is calculated on an annualized basis using a blended tax rate. Each portion of the monthly pension payment is placed into the applicable tax bracket, as set out by the tax rules.Â
10% for annual income up to $30,000Â | 20% for annual income from $30,000 to $60,000Â | 30% for annual income over $60,000Â |
For a $3,000 monthly pension payment ($36,000 annually), a portion is taxed at 10% and a portion is taxed at 20%. A retroactive monthly pension payment of $3,500 ($42,000 annually) would be taxed at 20% because it falls in the $30,000 to $60,000 income range.Â
When you file your tax return, the total amount you receive from OMERS, including the retroactive payment, is factored in with the overall tax paid for the year based on all of your sources of taxable income. If your tax paid is in excess of what is required on your income from all sources, such as the Canada Pension Plan (CPP), Old Age Security (OAS), RRIFs, employment income, etc., you will likely qualify for a refund when you file your tax return for the year.
You may be eligible to purchase your time off.Â
If you are leaving your OMERS employer, there are some decisions you need to make.Â
Explore more OMERS benefits and plan for your loved ones.Â