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Retirement

Returning to work after retirement

If you return to work while receiving your OMERS pension, there are important choices you need to make. Understand how to manage your pension by exploring your options below. 

Working for a non-OMERS employer while on pension

If you start working for a non-OMERS employer after you start your pension, it will not affect your pension payments.

Returning to work for an OMERS employer while on pension

If you retire from employment with an OMERS employer and start receiving your OMERS pension but decide to return to work for an OMERS employer, you will have two choices:

  1. Stop your pension payments for as long as you are employed and re-enrol in the OMERS Plan

  2. Continue to receive your pension payments and choose not to re-enrol in the OMERS Plan

Eligibility to initiate your OMERS pension

To retire and start receiving your pension from OMERS, you must have previously ended employment with your OMERS employer.

A complete end to the employment relationship is required to comply with the Plan terms and legislation. This is sometimes referred to as a valid termination. For example, a valid termination happens when you lose your seniority and benefits, and a Record of Employment (ROE) is issued to Service Canada regarding the end of your employment.

A member cannot leave employment with their OMERS employer and then shortly thereafter restart that same employment just to start their pension.

1. Stop pension payments and re-enrol in the Plan    

If you are eligible and decide to re-enrol in the Plan, your pension payments will stop and you will resume making contributions each pay period. 

Your employer should notify OMERS immediately to suspend your pension payments while you are working. Any payments received after re-enrolment must be repaid to the Plan, including any payment made in the month you re-enrol. OMERS will send you information about the required repayment amount. 

When you subsequently retire or reach the latest date you may accrue a pension before starting it (November of the year you turn 71 – see below), your pension will be recalculated, taking into consideration your total credited service, contributory earnings and the Plan provisions in effect at the time. 

Limits to accruing credited service

  • Effective January 1, 2021, OMERS will no longer cap your credited service. If you did not reach 35 years of credited service prior to this date, you will continue to contribute and accrue credited service in the Plan. If you met the 35-year cap before January 1, 2021, the limit will continue to apply. See our Member FAQs about the 35-year cap and how it could impact your Plan benefit. 

  • If you re-enrol and work up to November 30 of the year you turn 71, your OMERS contributions will stop and you'll start receiving your pension, regardless of whether you continue working. This is required by the Income Tax Act. In most cases, when you subsequently retire, all of your credited service and earnings are combined into one OMERS membership record and your pension is recalculated. 

  • If you received a 50% rule refund previously, you must repay it to combine your service. See Getting started to learn more about combining service.

2. Continue to receive pension payments and choose not to re-enrol in the Plan 

If you decide to continue to receive your OMERS pension payments, you can no longer make contributions to your pension. This is because, under the Income Tax Act, you cannot receive a retirement benefit and accrue OMERS service at the same time.  

You must submit an Employed OMERS Retiree Election form to confirm your choice.  

If your new position has voluntary Plan enrolment because it is non-full-time and you wish to continue to receive your pension, you can choose not to re-enrol in the Plan through the Offer of OMERS Membership form. The completed form must be returned to your employer.

Income tax rules

The additional income you will make by returning to work will change your total taxable income (which includes your OMERS pension, Canada Pension Plan payments, investment income and other sources of income). OMERS can increase the tax withholding at source to reduce the possibility of owing additional taxes when you file your tax return. You can make this change through myOMERS.