Turning 65
Age 65 is a milestone for OMERS retired members. For instance:
- age 65 is a good time to think about medical insurance;
- the amount of your OMERS pension changes; and
- some important federal benefits become available to you.
Medical insurance
Age 65 is often a turning point for medical benefits:
- employer medical and dental coverage may end at 65;
- Ontario residents become entitled to benefits under the Ontario Drug Benefit Program when they turn 65, but some products may not be covered, e.g., the program does not cover the cost of prescription drugs bought outside Ontario; and
- it may have been several years since you assessed your medical insurance needs.
To help with insurance planning, we send an insurance information package to retired members just before they turn 65. The package includes notices from the organizations listed below, and while we cannot endorse or guarantee any of these products or services, we have agreed to pass along their information.
Be sure to identify yourself as an OMERS member if you enquire about coverage – these organizations have special offers for OMERS members.
|
Organization |
Contact information |
|---|---|
|
Mitchell & Abbott Group Insurance Brokers
|
Phone: 1-800-463-5208 |
|
Encon |
ENCON Group Inc. Phone: 1-800-387-2037 |
|
Municipal Retirees Organization of
|
4094 Tomken Road
|
|
PLANDirect Insurance |
Phone: 1-800-565-4066 or 416-490-0072 |
|
OTIP |
|
OMERS bridge benefit
While your lifetime pension is paid for life, the month after you turn 65 OMERS bridge benefit will be taken off your pension payment. Just before you turn 65, you will receive a notice from OMERS detailing the change to your pension.
Background
Your OMERS pension is designed to work with the Canada Pension Plan (CPP) to help provide a reasonable, total retirement income. Here’s how:
- While you work, you pay a lower OMERS contribution rate on the portion of your earnings for which you also contribute to CPP (up to $47,200).
- When you retire, your OMERS and CPP pensions work together to provide you with retirement income.
How we calculate your bridge benefit
0.675% x credited service (years) x lesser of "best five" earnings or $44,840
Terms and figures
- "Best five" earnings is the annual average of your highest 60 consecutive months of contributory earnings.
- $44,840 is the current five-year average (2006-2010) of CPP’s earnings limit.
- $47,200 is CPP’s annual earnings limit for 2010.
No link between CPP pension and OMERS bridge benefit
Your CPP pension is based on how long you have worked and contributed to CPP. The OMERS bridge benefit is based on your credited service in OMERS. The two amounts are not linked and may be quite different.
Canada
If you haven’t already started to receive your CPP pension, be sure take the steps necessary to ensure you receive the benefit you’ve earned. CPP benefits are not sent automatically.
Application kits are available at http://www.hrsdc.gc.ca/eng/oas-cpp/index.shtml or from your local Human Resources and Skills Development Canada office.
Other Government benefits include the Old Age Security (OAS) program, which is supplemented by the Guaranteed Income Supplement and the Allowance for low-income seniors. When you turn 65, you may be entitled to these benefits. Like CPP, you must apply for them.