Your future is our focus, even if you leave your OMERS employer before you can start your pension. You can keep your pension with OMERS and get a future stream of retirement income for life.
If you ever have to face the decision of what to do with your pension, one important factor is your comfort level regarding investment risk. If you keep your pension with OMERS, you are guaranteed future monthly pension income for life. If you choose to take a commuted value transfer of your OMERS entitlement out of the Plan into a retirement savings vehicle, you take on the responsibility for managing your investments and the risk that you may outlive your savings. Keep in mind that, while a lump-sum payout of your pension may seem like a lot of money, it has to last you for life and, in many cases, only a portion of it can go directly into a locked-in tax-sheltered account, and the rest is fully taxable.
Mona and John will both receive an OMERS pension paid for life. If instead they elected a commuted value transfer out of the Plan (prior to their early retirement age), and assuming the invested transfer amount earns a rate of return of 4% every year (net of investment expenses) and they only make annual withdrawals equal to the indexed OMERS pension income: