On February 19, 2009, OMERS Sponsors Corporation (SC) approved the following plan changes.
1. Active membership extended from age 69 to age 71 in OMERS Primary Pension Plan and OMERS Supplemental Pension Plan
Old rules (apply to active members who turned 69 on or before February 28, 2009)
Active OMERS members who worked past their normal retirement date had to start their OMERS pension no later than the first of the month following their 69 th birthday. Active members who turned 69 started to receive their OMERS pension whether or not they continued to work, and would no longer make contributions.
New rules
Effective March 1, 2009, active OMERS members who continue to work past their normal retirement date must start their OMERS pension no later than the end of the year in which they turn 71. Since OMERS pensions are paid at the beginning of each month, the pension must start no later than December 1 of the year in which the member turns 71. This applies even if the member’s birthday is in December. On December 1, the member’s pension will start whether or not he/she continues to work, and the member will no longer make contributions.
Example:
If John turns 71 on March 12, 2014, his OMERS pension must start by December 1, 2014. In December, John will receive his OMERS pension whether or not he continues to work, and he will no longer make contributions or earn credited service.
Transition period rules (apply to members who turn 69 on or after March 1, 2009 and on or before February 28, 2014)
There is a transition period for active members who will turn 69 over the next five years. An active OMERS member who turns 69 on or before February 28, 2014 may elect, despite ongoing employment, to start his/her OMERS pension on the first of any month up to the earlier of:
- December 1 of the year he/she turns age 71, and
- March 1, 2014.
After February 28, 2014, an active OMERS member who works past his/her normal retirement date will continue to make contributions and earn credited service (to a maximum of 35.00 years) until retirement or until November 30 of the year in which the member turns age 71, whichever is earlier.
Important: The transition period rules are not retroactive – active members who turned 69 on or before February 28, 2009 must have started their pension no later than the first of the month following their 69th birthday.
Members immediately affected
Active members who turn 69 in March 2009 have been notified that their pension will not automatically begin on April 1, 2009. We will also advise active members who turn 69 on or after April 1, 2009 and on or before December 31, 2009 that their pensions will not automatically begin on the first of the month following their 69th birthday.
2. Option for fire associations and police associations to continue normal retirement age 60 for former firefighters and police officers
This plan change to the OMERS Primary Pension Plan applies only to participating fire and police associations, not to other OMERS employers.
Effective March 1, 2009, fire associations and police associations now have the option to provide normal retirement age 60 benefits to all or a class of members who:
- cease to be employed as firefighters or police officers;
- had a normal retirement age of 60 before ceasing to be employed as firefighters or police officers; and
- subsequently become employed by a participating fire or police association within 90 days of ceasing to be employed as a firefighter or police officer.
To provide normal retirement age 60 for all or a class of members who meet the above criteria, the fire or police association would establish normal retirement age 60 as part of their participation bylaw.
3. Housekeeping amendment to the OMERS Primary Pension Plan
Effective March 1, 2009, a housekeeping amendment has been made to clarify the language in the wind-up provision to better reflect the Pension Benefits Act requirements that apply to the Plan.
