Survivor pension payments
- OMERS pension payments are made monthly, and begin the first day of the month following the month of the member's death.
- The actual date of the first payment will depend on when we receive all the necessary documents.
- Any retroactive amounts owing to you will be sent as a one-time payment, within seven days of processing your pension.
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- If you choose payment by direct deposit, your payment is deposited into your bank account on the first banking day of the month (which may be the first of the month or the first day banks are open after a weekend or holiday). If your payment is not in your account by the first banking day of the month, contact your bank.
- Direct deposit means your pension is always on time and safe, even during mail strikes or when you're not at home.
Note: Direct deposit is available only through banks in Canada and the United States.
- If you choose to receive your monthly payments by mailed cheques, you can expect to receive your cheque at the beginning of each month.
- If your cheque is late, contact OMERS Client Services (please allow five business days for mail delivery in Ontario; outside Ontario, in the U.S. or overseas, please allow 10 days).
Your survivor pension is protected against inflation
OMERS pensions are guaranteed to increase by the inflation rate measured by the Consumer Price Index (CPI). Increases are effective each year on January 1. If the CPI increase is greater than 6%, the excess is carried forward for use in a later year. If your pension payments began:
- a year or more before the January 1 increase date, you will get the full increase;
- between January and November of the year before the increase date, you will get a pro-rated (partial) increase;
- in the December immediately before the increase date, you will not receive an increase on January 1. However, you will get a full increase the following January.
The pre-1987 minimum benefit guarantee
When OMERS calculates the survivor's pension, we ensure that its commuted value is at least equal to the sum of:
- the commuted value of the member's pension earned since January 1, 1987; and
- the member's contributions made before 1987 plus interest, to the date of the member's death.
Any difference will be added to the survivor's pension.
Member also entitled to a pension from another plan
If the deceased member was entitled to a pension from another plan for a period of credited service that is also covered by OMERS, their OMERS pension will be reduced by the amount of the other pension before we calculate the survivor's benefit.
Income tax
OMERS is required by the Canada Revenue Agency (CRA) to withhold tax from your monthly pension payments, where necessary. The tax amount is based on your OMERS pension payments, your tax exemptions as shown on your federal and provincial TD1 tax forms, or your country of residence information.
If you would like OMERS to withhold additional tax from your pension payments, either:
Each year, by the end of February, we mail a T4A to your home address. This form shows the total amount of pension paid to you during the previous year and the total tax deducted. The T4A is your official proof of income for income tax purposes.
- Please let us know immediately if your address changes.
Canadian tax law may require that we withhold tax from your pension payments if you live outside Canada. The tax rates vary depending on whether your country of residence has a tax treaty with Canada, and on whether you have non-resident tax status.
- If you live outside of Canada, we will mail you an NR4 by the end of February each year. The NR4 shows the total amount of pension paid to you during the previous year and the total tax deducted. It is your official proof of income for income tax purposes.
- Please let us know immediately if your address changes.
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Changing your address or banking information
Please notify OMERS immediately if you change your address or banking information (bank, branch, or account number). Please send us a signed letter with your:
- full name (printed);
- OMERS reference number; and
- new address and telephone number.
- If your payments are made by direct deposit to your chequing account, please send us a new void cheque.
- If your payments are made to your savings account, we need the new account number, branch and transit numbers.
Note: We suggest keeping your old account open until you are sure your new information has been processed, and that your payments are in fact being deposited to the new account.
If you receive your pension payments by direct deposit, you can also change your address by calling OMERS Client Services. We need your:
- full name;
- OMERS reference number;
- date of birth; and
- old and new address and telephone number.
Note: For your protection, if you receive your pension payment by cheque, OMERS cannot process your address or banking changes by phone.
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Power of attorney (POA)
If you appoint someone to have power of attorney (POA) to look after your financial affairs, please send OMERS a copy of the POA document for our records. For pension purposes, your POA document requires (continuing) power of attorney for property.
We will deal with the person you have appointed but we must have proof of their identity. Also, if your POA document states that proof of your disability is needed first, we will need this proof before we can deal with the person you appointed.
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Procedure in the event of your death
As the recipient of an OMERS survivor pension, you should designate someone to contact OMERS immediately in the event of your death. We'll need to know:
- your name;
- your OMERS reference number (or social insurance number);
- the date of death;
- whether there are any eligible children; and
- the name and number of someone we can contact for more information.
If the spouse of a deceased OMERS member dies while receiving an OMERS survivor pension, the following order of entitlement to a benefit applies:
| 1. The original member's eligible children will receive a pension for as long as they are eligible. |
The children's pension is equal to the survivor's pension the spouse was receiving at the date of their death (less any entitlement for eligible children).
- The children's pension is divided equally among the children and is paid to, or on behalf of, each eligible child.
- When a child is no longer eligible, the benefit is redistributed among the rest of the eligible children.
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2. If there are no eligible children, the original member's named beneficiary may be entitled to a residual refund. (We need to have their name on file. A survivor cannot change the beneficiary that the original member chose.) |
A residual refund is the total of the member's OMERS contributions with interest, minus any pension paid to the member or their survivors.
After five years of retirement, most members have received pension payments equal to their contributions plus interest, so there probably would be no refund. |
| 3. If the original member did not name a beneficiary, then their estate may be entitled to the residual refund. |
Note: A deceased member's will directs the settlement of the estate, not the OMERS entitlement. |
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