If you belonged to another defined benefit (DB) registered pension plan before you joined the OMERS Plan, you may be able to transfer that service into the Plan. This could increase your OMERS service, therefore increasing your total pension amount.
If you’ve already started to receive a pension, received a refund or transferred it to an RRSP or annuity, you are not eligible to transfer. You are only eligible to transfer if:
You’re entitled to a benefit in the other plan
You have not started receiving a pension based on the service to be transferred
The other pension plan will agree to the transfer
OMERS has reciprocal transfer agreements with many other pension plans in Canada, listed below. Even if we don’t have an agreement with a certain plan, we may be able to set up a one-time transfer agreement provided certain criteria are met.
If your previous pension plan was a defined contribution (DC) plan, a specified multi-employer plan or your previous DB pension was refunded to you and is now in a locked-in account, visit our buying service page to learn about your options.
Transfers have time limits — usually you must begin the process within six months of enrolling in OMERS. Time limits vary depending on the agreement, so apply as soon as possible. You will then receive details of your transfer and once you’ve had a chance to review it, you can make a final decision.
If you have previously contributed to a DB plan or transferred out, call us to determine whether a transfer-in or buy-back is right for you.
If you are considering transferring service, call OMERS Member Experience.
Transfers are based on the actuarial value of the service you are transferring to OMERS. The calculation reflects the value of your pension based on credited service, your salary with your OMERS employer and other Plan provisions. Plan differences between the OMERS Plan and your other plan, such as early retirement options, survivor benefits and inflation protection, can make the value of your pension vary between the plans. This can result in a shortfall or excess. This means that the value of your benefit in the other plan could be less than the value of the equivalent service in the OMERS Plan or it could be worth more.
If your transfer results in a shortfall, you will be given the opportunity to purchase all or part of the difference. The amount required to pay for a shortfall can be paid in a lump sum in cash, from your RRSP, from your Additional Voluntary Contributions or a combination within specified time limits. If you do not purchase your shortfall within the specified time limit, you can purchase it later under the buy-back provisions, which may increase the cost of the service.
Paying the shortfall from your RRSPs will generally not result in a Past Service Pension Adjustment (PSPA). If a PSPA exists, this must be approved by the Canada Revenue Agency (CRA) before the transfer can be completed and it will impact your RRSP contribution room. See the example below for more information.
When the amount available for transfer from your previous plan is larger than the amount needed to establish equal credit in the OMERS Plan, you cannot be credited with the extra service. Each plan deals with excesses differently. Contact the plan you are transferring from for information on excesses.
The Income Tax Act (ITA) governs the service you can transfer into the Plan. Contributing to the pension plan in Ontario uses up some of your RRSP room. When you purchase past service, OMERS must ensure that you have the available room to make contributions to a pension plan under the applicable ITA rules. This often requires contacting the CRA to approve or “certify” a PSPA, particularly if you are using cash to make the purchase. Before your purchase can be finalized, OMERS must contact the CRA to confirm if your PSPA will be approved.
The actuarial value we calculate is based on valuing the service you are transferring to OMERS from your previous pension plan, under the OMERS Primary Plan benefit formula. This means that if you are paid at a certain level, the OMERS Retirement Compensation Arrangement will not apply to transferred service and your benefit will be capped by the ITA. This is similar to the rules around buying back service.
In each year that you accrue a pension benefit, a Pension Adjustment (PA) is calculated and reported to the CRA on your T4 slip. The PA reduces your RRSP contribution room for the following year to account for the pension that you accrued.
Total PAs representing new service in OMERS ($4,800)
– Total PAs reported by previous plan for past service (– $5,000)
= Difference (– $200)
Therefore, PSPA certification is not required because your previous plan’s reported PAs were sufficient for the pension your transferred service will receive under the OMERS Plan. This means that there is no need to check for additional RRSP room to complete the transfer.
A Pension Adjustment Reversal (PAR) restores a member’s RRSP room if the total PAs calculated by the importing registered pension plan are less than the PAs and PSPAs that have been previously reported by the exporting RPP. In this scenario, the member would have a PAR. The exporting plan will issue a PAR to the CRA and the CRA will then restore the applicable amount of RRSP contribution room.
Total PAs representing new service in OMERS ($7,800)
– Total PAs reported by previous plan for past service ( – $6,000)
= Difference ($1,800)
OMERS must have a $1,800 PSPA certified by the CRA before permitting the transfer because your previous plan’s reported PAs in respect of your transferred service are less than the equivalent PAs under the OMERS Plan. In other words, your OMERS pension is higher than your previous plan pension and you need additional RRSP room to bring the money from your previous plan.
If you do not have enough RRSP room, the CRA will contact you directly regarding the options available to you. If the CRA is unable to certify your PSPA, your purchase may be declined. If this scenario applies to you, contact OMERS Member Experience.
Let's say scenario 2 results in a shortfall of two years of credited service with a cost of $2,000. In other words, you must pay an additional $2,000 to establish the same amount of credited service in OMERS that you had in your previous plan. If you choose to transfer funds from your RRSPs to pay for the entire shortfall, however, the PSPA is wiped out because the money being transferred from your RRSPs does not represent a new tax-deductible contribution to your retirement savings and so does not reduce your cumulative RRSP contribution room.
PSPA ($1,800)
– RRSPs used to pay shortfall (–$2,000)
= Difference (–$200)
Therefore, the PSPA is wiped out because a transfer from your existing RRSPs does not represent a new tax-deductible contribution to your retirement savings and so does not reduce your cumulative RRSP contribution room.
If you are transferring service from any of the plans below, you may have additional transfer options. To learn more, contact OMERS Member Experience.
British Columbia Municipal Pension Plan | British Columbia Public Service Pension Plan | Electrical Safety Authority Pension Plan |
Federal Superannuation Fund | Halifax Regional Municipality Pension Plan | Hydro One Pension Plan |
Independent Electricity System Operator Pension Plan | Manitoba Municipal Employees Pension Plan | Newfoundland and Labrador Public Service Pension Plan |
Northern Employees Benefit Services Pension Plan | Ontario Institute for Studies in Education Pension Plan | Ontario Power Generation Inc. Pension Plan |
Ontario Public Service Employees' Union: OPSEU Pension Plan and OPSEU Staff Pension Fund | Ontario Public Service Pension Plan (Ontario Pension Board or OPB) | Ontario Teachers' Pension Plan (Teachers’ or OTPP) |
Retraite Québec (CARRA or RREGOP) | Ville de Hull Pension Plan | Workplace Safety and Insurance Board Employees' Pension Plan (WISE or WISE Trust) |
Learn how purchasing past service from a previous or current employer can help increase your pension.
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