Commuted Value Election
Currently, members who are eligible to take their CV when their employment terminates (i.e., under age 55 / 50) can choose the CV option as outlined on their pension option form at any time between their date of termination and the date that they first become eligible to start their pension (i.e., age 55 / 50).
The amended CV election places a limit on the amount of time eligible members have to elect to transfer their CV after they terminate employment.
The change affects two membership classes:
Active members who terminate their employment and are eligible to take their CV as a payment option.
Deferred members (as of August 23, 2017), who have not yet attained age 55/50, will have a final chance to elect to transfer their CV.
Members terminating employment who are more than 10 years from their normal retirement date receive the option to transfer the value of their deferred pension entitlement (i.e., the CV) out of the Plan in lieu of a monthly pension payment. The following members will receive the CV transfer option:
Members terminating employment prior to age 55 (for NRA 65)
Members terminating employment prior to age 50 (for NRA 60)
As of August 23, 2017, eligible active members who wish to receive a CV upon termination of employment have a one-time option to elect accordingly, and must make their election by the later of six months from the termination date and January 1, 2020. If an eligible active member terminates employment on or after January 1, 2020, the election must be made within six months of the termination date.
Deferred members (as of August 23, 2017) who have not yet attained age 55/50, will have a final chance to elect to transfer their CV. This process must be completed by January 1, 2020.
After the applicable time limit has expired, members can no longer elect to transfer their CV out of the Plan.
The Plan change is the result of an annual decision-making process intended to keep the Plan meaningful, affordable and sustainable. This change will limit the use of certain Plan provisions that could give a few members an unintended benefit at the expense of the entire Plan membership.
This change does not affect the existing window where a CV quote is valid. An active member who is close to their 55/50 birthday will continue to have six months to make their election.
No, the Plan amendment does not affect members’ monthly pensions.
No, the CV election change does not apply to the Additional Voluntary Contributions (AVC) program.
A member’s choice to pursue a different option can impact their subsequent ability to choose differently later. The time period continues to apply regardless. The answer depends on whether the member is still within the applicable time period:
For active members (under age 55/50) who terminate employment on and after August 23, 2017, they may use the CV option if they are still within six months of the date of their termination or they make the election before January 1, 2020.
Deferred member (as of August 23, 2017) who are provided with a final chance to use the CV option, must elect within the time frame specified on their election form.
As of January 1, 2020, members must be within six months of the date of their termination of employment to use the CV option.
No. In all cases, a consistent rule will be applied.
Elimination of the 35-year Cap
The 35-year cap puts a maximum of 35 years on the member's credited service.
Once the cap is reached:
The member stops making contributions to the Plan and stops accruing credited service, even if he or she continues to work for an OMERS employer.
The member’s employer also stops making matching contributions.
To calculate the member’s pension, OMERS uses the 35 years of credited service the member has accrued and the member’s “best five” years average earnings (including any earnings received after the date the member reached the cap). This means that a member who is subject to the 35-year cap could still see an increase to his or her annual pension amount, if the member’s “best five” earnings increase after the date the member reaches the cap.
This plan change takes effect on January 1, 2021. A member’s credited service will not be capped, provided the member has less than 35 years of credited service on December 31, 2020. In that case, the member and employer will continue to make contributions, and the member will continue to earn credited service for as long as he or she is employed by an OMERS employer.
For a member who has already earned 35 years of credited service on December 31, 2020, the 35-year cap remains. The maximum amount of credited service the member can accumulate is 35 years, even if he or she continues to work past 35 years. In other words:
a member who will have earned 35 years of credited service on December 31, 2020, will continue to be subject to the 35-year cap; and
a member who will have earned less than 35 years by December 31, 2020, will not be subject to the 35-year cap.
The 35-year cap was removed as a result of the Comprehensive Plan Review conducted by the OMERS Sponsors Corporation throughout 2018.
Removing the cap helps to address the needs of long-service members who want to work beyond 35 years. By earning more credited service, members will increase their lifetime pensions.
Yes. If a member who is not subject to the 35-year cap works beyond 35 years, he or she will continue to earn more credited service. The more credited service years in the Plan, the larger the member’s lifetime pension.
The change takes effect on January 1, 2021. A member’s credited service will not be capped if he or she has less than 35 years of credited service on December 31, 2020. The member and employer will continue to make contributions, and the member will continue to earn credited service for as long as he or she is employed by an OMERS employer.
No. Members who are capped at 35 years will no longer make contributions to the Plan, accrue credited service or be able to purchase service over and above 35 years.
No. In all cases, a consistent rule will be applied: a member who will have accrued 35 years of credited service prior to January 1, 2021 will always be capped at 35 years of credited service. Members with less than 35 years of credited service prior to January 1, 2021 are required to make mandatory contributions beyond their 35th year, and their OMERS employers will match those contributions.
Amendment to Normal Retirement Age (NRA) Conversions from 65 to 60
Most members in the OMERS Plan have an NRA 65. Members who are police officers, firefighters, or paramedics (including those employed in an eligible role by a participating association) are eligible to have an NRA 60.
When an eligible member’s NRA is changed from 65 to 60, an adjustment is applied in most cases to the member’s credited service to reflect the NRA 60 early retirement benefits.
Effective June 21, 2023, the service adjustment calculation will be based on the lowest of the following three percentages:
25% if the member is under age 60 or, if the member is age 60 or more, 5% multiplied by each year between the member’s age and age 65;
The percentage resulting from an actuarial equivalence calculation that uses the same actuarial basis used to determine the conversion cost (described below); and
The percentage resulting from an actuarial equivalence calculation that uses a commuted value basis (taking into account the commuted value of the member’s benefit immediately before and after conversion).
Does this change impact me?
As explained above, NRA 60 is only available to OMERS members in certain occupations – police officers, firefighters and paramedics. The change described above only impacts an active member of these groups if they have an NRA conversion from age 65 to 60 on or after June 21, 2023.
The amendment also does not impact any member who had an NRA 65 to 60 conversion prior to June 21, 2023.
The OMERS Plan permits an OMERS employer to elect to provide NRA 60 benefits for all or a class of its police, firefighter, or paramedic employees that participate in the OMERS Plan. NRA 60 benefits are not automatically provided by OMERS, and for unionized employees, NRA 60 benefits can be subject to negotiation between employers and unions.
For more information, visit the Normal Retirement Age Changes (Police, Firefighters and Paramedics) page and refer to the comprehensive Q and As.
NRA conversions typically occur if an employer elects for a class of eligible members to have an NRA 60, which can be subject to bargaining. It may also occur if a member switches jobs and moves to an employment class with an OMERS employer that already has NRA 60.
Yes, but individual circumstances might still mean that their early retirement pension may be reduced if they retire from employment prior to age 60. For example, a member may or may not have enough OMERS service to qualify for an unreduced pension.
For more information on early retirement, see the Member Handbook or visit the Normal Retirement Age Changes (Police, Firefighters and Paramedics) page.
The 2023 NRA 60 contribution rates for each pay period are:
9.2% up to the CPP earnings limit; and
15.8% over the CPP earnings limit.
Note: 2023 CPP earnings limit is $66,600 and contribution rates are subject to change.
For more information about contribution rates, visit the Contribution Rates page.
Credited service is reduced in accordance with the service adjustment calculation described above because the member is now entitled to retire with a normal retirement pension five years earlier than if they had an NRA of 65. After their NRA changes, OMERS will send the member information about the impact to their credited service and the cost to buy the service adjustment (i.e., the conversion cost).
The conversion cost to by the service adjustment generally reflects the difference in the actuarial present value of the member’s benefit at his or her earliest unreduced retirement date as an NRA 60 member and NRA 65 member. It is based on a number of variables, including the member’s age, contributory earnings and the actuarial assumptions and interest rates in effect at the time the calculation is performed. A change to any of these variables may increase or decrease the conversion cost.
No, this is optional. A member can buy none, some, or all of the service adjustment; however, having more credited service on the member’s OMERS record entitles the member to a larger benefit under the OMERS Plan.
Eventually, yes if the member continues to be an active OMERS Plan member. Initially, the cost will increase as the member approaches the age they become eligible for an unreduced NRA 60 pension. Typically, it will decrease and reduce to zero around the age of eligibility for an unreduced NRA 65 pension.
Buying the service adjustment prior to the conversion cost reaching zero can increase the member’s benefit should any unexpected circumstances arise before the conversion cost starts to decrease (e.g., termination of employment or death).
For more information and examples, visit the Normal Retirement Age Changes (Police, Firefighters and Paramedics) page.
Each conversion cost is valid for 6 months. After the expiration of a conversion cost, an updated conversion cost can be requested by a member and the new conversion cost could be higher or lower. The purchase of the service adjustment must be completed while still an active member of the Plan.
No. The election to make the purchase is irreversible. There is no refund of the purchase for NRA 60 members, including if the member continues to be an active member and work to a point where the conversion cost would have otherwise reduced to zero or reduced to below what they paid.
Extending Leave Purchase Deadlines
This change extends leave purchase deadlines by one year for members returning to work in 2020, 2021 or 2022.
For example, a member who returns from their leave in 2020 would have until December 31, 2021 to complete the purchase of their leave. With this change, the member’s leave purchase deadline has been extended to December 31, 2022.
Given the continuing challenges and uncertainty brought about by the COVID-19 pandemic, extending the deadline to purchase a leave of absence provides members with more time to evaluate and purchase their leave period which may alleviate current financial pressures.
I am a member who returned from a leave of absence in 2019.
No change. The deadline to complete the purchase of your leave of absence is December 31, 2020.
I am a member who returned from a leave of absence in 2020.
The deadline to complete the purchase of your leave of absence is extended from December 31, 2021 to December 31, 2022.
I am a member who will return from a leave of absence in 2021.
The deadline to complete the purchase of your leave of absence is extended from December 31, 2022 to December 31, 2023.
I am a member who will return from a leave of absence in 2022.
The deadline to complete the purchase of your leave of absence is extended from December 31, 2023 to December 31, 2024.
I am a member who will return from a leave of absence after 2022.
No change. The deadline to complete the purchase of your leave of absence is December 31 of the year following the year you return from your leave.
This extension applies to all leave purchases that are currently available (see: Taking Time Off) provided you return from your leave in 2020, 2021 or 2022.
This amendment does not extend the deadline for making an election for a service buy-back or the 30-day deadline for completing a service purchase for a member who has terminated employment.
Reducing or Eliminating the 36-Month Employment Requirement for Purchases of Periods of Reduced Pay
Currently, under the Income Tax Regulations and the Plan text, members must have 36 months of employment with their employer to be eligible to purchase a period of reduced pay.
This change places OMERS in a position to seamlessly adapt to any future change to the 36-month employment requirement under the Income Tax Regulations.
Given the increased occurrences of members with periods of reduced pay brought about by the COVID-19 pandemic, aligning the eligibility requirement with the Income Tax Regulations allows for the seamless administration of this leave in the event any changes to the Income Tax Regulations occur.
See below for changes that occurred for the years 2020 and 2021.
If there is a change to the eligibility requirement in the Income Tax Regulations to purchase a period of reduced pay:
The required time you must be employed with your employer to be eligible to purchase a period of reduced pay in the Plan will automatically change to reflect the change to the Income Tax Regulations.
On July 2, 2020 the Department of Finance released draft regulations that set aside the 36-month employment requirement for periods of reduced pay in 2020. The Department of Finance subsequently extended these draft regulations on May 20, 2021 to set aside this requirement for 2021. The draft regulations have now come into force. This means that for 2020 and 2021, the 36-month requirement does not apply.
If the Income Tax Regulations are not changed:
No change. OMERS will continue to administer the Plan with the 36-month employment requirement.
A period of reduced pay is a temporary period where a member makes less pay because of a reduction in a member’s hours or days worked.
Permitting Temporary Layoffs as Purchasable Service
This change makes it possible for members to purchase a period of temporary layoff if the layoff was initiated in 2020, 2021 or 2022. Prior to this amendment, the Plan did not permit members to purchase absences from work related to a temporary layoff.
The cost to purchase a period of temporary layoff, if completed by the purchase deadline, would be two times the contributions that you would have made to the Plan based on your earnings before you were placed on layoff.
Given the increased occurrences of member layoffs brought about by the COVID-19 pandemic, permitting temporary layoffs as purchasable service supports members by allowing them to convert the absence into credited service, which would increase their pension and bring them closer to an unreduced early retirement pension.
If you are an active member of the Plan on or after June 24, 2020 and are absent from work due to a temporary layoff initiated in 2020, 2021 or 2022, you will be eligible to purchase the period of temporary layoff.
If you were placed on a layoff in 2020 and your employment was subsequently terminated by you or your employer before June 24, 2020 (whether you started your pension, elected a deferred pension or transferred out the commuted value of your pension), you will not have the option to purchase the period of layoff. This means that your pension or commuted value (if applicable) will not be impacted by this change.
If your layoff was initiated before 2020, the temporary layoff cannot be purchased. However, if your layoff was initiated in 2020, 2021 or 2022, the date you return from your layoff would determine the deadline to purchase the layoff.
If your layoff was initiated in 2020, and you returned from your layoff in 2020, then you have until December 31, 2022 to purchase the layoff period.
If your layoff was initiated in 2020 or 2021, and you return from your layoff in 2021, then you have until December 31, 2023 to purchase the layoff period.
If your layoff was initiated in 2022, and you return from your layoff in 2022, then you have until December 31, 2024 to purchase the layoff period.
If your layoff was initiated in 2020, 2021 or 2022, and you return from your layoff after December 31, 2022, then you have until December 31 of the year following the year you return from layoff to purchase the layoff period.
If your layoff was initiated after 2022, the temporary layoff cannot be purchased.
Non-Full-Time Expansion
This change to the OMERS Primary Pension Plan (the OMERS Plan) removes the current eligibility rules so that all non-full-time employees, including those who are currently ineligible, could elect to join the OMERS Plan at any time after December 31, 2022.
Enrolment in the OMERS Plan would take effect in your employer’s next available pay period after your election has been received. This date can be no later than the end of the month following the month in which the election was received. Enrolment would remain in place as long as the member continues working with their current employer.
This change will not be implemented until January 1, 2023.
Your contributory earnings are your regular and recurring earnings in each pay period, excluding additional amounts such as overtime pay and most one-time and lump-sum payments.
Common examples of earnings that qualify as contributory earnings include:
Base pay (salary or wages)
Permanent increases to salary or wages
On-call pay
Sick pay (regular salary or wages)
Taxable benefits that are regular and recurring, such as a car allowance or life insurance premiums
Regular commissions
And more
Common examples of earnings that do not qualify as contributory earnings include:
Overtime pay
Non-taxable benefits and temporary benefits (such as temporary pay increases)
Certain types of payments made at the end of an employment relationship (such as a retiring allowance)
Lump-sum severance pay
Signing bonus
And more
If you have any questions about what qualifies as contributory earnings under the OMERS Plan, please get in touch with your employer.
You will receive your OMERS lifetime pension for life! Your OMERS bridge benefit is payable if you retire prior to age 65 until you reach age 65. Refer to the Retirement section of the OMERS Member Handbook for more information.
If you have any prior service with an OMERS employer, you may be able to add eligible service or purchase that time. This includes summer work or part-time work with an OMERS employer. For more information, see our Buying Service page.
You can increase your savings by investing in the OMERS Fund with Additional Voluntary Contributions (AVCs), similar to RRSPs. AVCs are administered as part of the OMERS Plan but separate from your OMERS pension.
There are two ways to contribute to an AVC account:
Transfer funds from a registered retirement savings vehicle, for example, an RRSP.
Automatic contributions by pre-authorized debit or payroll deduction through your employer.
See our Additional Voluntary Contributions page for more details and to see if AVCs are right for you.
Once you become a member, you remain in the OMERS Plan while you are employed with an OMERS employer even if your work hours or income decreases, or if your work status changes to or from full-time. It is important that you make an informed decision about electing to join the Plan because once you are enrolled, you cannot opt out.
An OMERS member who decides to leave employment with their OMERS employer can retire as early as age 55 for an NRA 65 member and age 50 for an NRA 60 member.
To find out more about retiring from the OMERS Plan, check out the Retirement section of the OMERS Member Handbook.
For more information, including an informative video about the process of enrolment in the OMERS Plan, visit our Non-Full-Time Employees page.
Shared Risk Indexing (SRI)
For pensions that are in pay based on benefits earned prior to January 1, 2023, each January, the eligible pension increases by 100% of the increase in the Canadian Consumer Price Index (CPI), up to a maximum increase of 6%. If the CPI increase is greater than 6%, pensions eligible for an inflation adjustment will increase by this 6% maximum and the excess (i.e., the applicable CPI increase above 6%) is carried forward for application in a future year when the CPI increase is less than 6%, provided the pension is still in pay.
CPI measures approximate changes in the cost of living based on the price of a basket of goods and services that an average Canadian household buys. The basket includes food, housing, transportation, energy, furniture, clothing and recreation. More information about the CPI is available on Statistics Canada's website.
Pensions in respect of benefits earned on or after January 1, 2023 are subject to SRI (see below).
SRI provides the option for the OMERS Sponsors Corporation (SC) Board, based on its annual assessment of the Plan’s health, to reduce future inflation increases on benefits earned after December 31, 2022. Benefits earned on or before December 31, 2022 will be granted full indexation. Benefits earned on or after January 1, 2023 will be subject to SRI, meaning that the level of indexation is conditional on the financial health of the Plan.
In December 2022, the SC Board decided that the methodology to determine the annual inflation adjustment to pensions in pay will not be impacted by SRI in 2024 or in 2025. This means that the 2024 inflation adjustment will provide full inflation protection to retirement, disability and survivor pensions earned on all periods of service. For more information on SRI and how it may impact inflation adjustments in years beyond 2025, please visit omers.com.
I retired before January 1, 2023:
Nothing changes
Your pension payments will never go down
The pension benefits you earned on or before December 31, 2022 will be granted full inflation increases every year
I retired or will be retiring after December 31, 2022:
Your pension payments will never be less than the year before
The pension benefits you earned on or before December 31, 2022 will be granted full inflation increases every year
The pension benefits you earn after December 31, 2022 will be subject to SRI, meaning they might not grow as fast as inflation
I became a deferred member on or before December 31, 2022:
Since you earned your benefits on or before December 31, 2022, when you retire:
Nothing changes
Your pension payments will never go down
The pension benefits you earned on or before December 31, 2022 will increase every year based on inflation
Your pension payments will increase every year based on inflation
I became a deferred member on or after January 1, 2023:
When you retire:
Your pension payments will never be less than the year before
The pension benefits you earned on or before December 31, 2022, if any, will be granted full inflation increases every year
The pension benefits you earn after December 31, 2022 will be subject to SRI, meaning they might not grow as fast as inflation
Job Share Arrangements
If you are an employee who was (CFT) before the job share, your arrangement can be classified in one of two ways for OMERS purposes depending on your employment classification.
If you continue to be a CFT employee, you can purchase the service you would otherwise normally work. For example, if you take a job share assignment that would temporarily reduce your work week from 5 days a week down to 3 days a week (while maintaining your CFT employment status), the 2 days not worked would be considered a leave of absence and would be purchasable at double contributions at the end of your job share arrangement.
However, if your employment status changes from CFT to (OTCFT), then the period that you do not work cannot be purchased as a leave of absence. For example, a job share arrangement that changes your ongoing employment arrangement to an OTCFT employee.
Employers are responsible for determining the appropriate classification of job share arrangements and are responsible for reporting them to OMERS. You can also view this flow chart for a summary of this information.
If you are an employee who was other-than-continuous full-time (OTCFT) before the job share, your arrangement can be classified in one of two ways for OMERS purposes:
If you continue to satisfy your existing employment conditions as an OTCFT employee, the period of absence should be classified as a purchasable leave of absence. For example, if you normally work 20 hours a week but temporarily work 15 hours a week on the job share, then the difference of 5 hours may be classified as a leave of absence.
However, if the changes in your employment conditions are not temporary, then the period that you are not working is not considered purchasable. For example, this would be the case if, as an OTCFT member, you normally work 20 hours a week and move to a 15 hour a week as a permanent go-forward work arrangement, the difference of 5 hours may not be purchased as a leave of absence since the change in your hours is considered your new employment arrangement.
Employers are responsible for determining the appropriate classification of job share arrangements and are responsible for reporting them to OMERS. You can also view this flow chart for a summary of this information.
As you have been classified as an OTCFT employee the time not worked is not purchasable. The time not worked is considered that can help bring you closer to an early unreduced retirement pension, however it cannot be purchased to become.
Financial Hardship
No. Applicable pension legislation does not enable you to access or unlock yourfunds under a registered pension plan like the OMERS Plan when you are experiencing financial hardship. Legislation does permit unlocking some retirement funds held in a Locked-in Retirement Account (LIRA) or Life Income Fund (LIF) if the applicable eligible criteria are met.
If your OMERS Plan benefit was previously transferred to a LIRA or LIF following the end of your employment with an OMERS employer, you may have the option to unlock the funds in these accounts based on financial hardship. Consult your financial institution and/or the website of the Financial Services Regulatory Authority of Ontario for more information.
No. But you may access your AVC funds during the existing withdrawal window.
The AVC Terms of Participation identify when you may access your funds. This may be during the annual withdrawal window from March to April or within other limited circumstances, like during a marriage breakdown settlement or to buy back service in the OMERS Plan. If you terminate employment with your OMERS employer, you can also access your AVC account balance within six months. No other withdrawal opportunities are available, including for reasons of financial hardship.
Read the Additional Voluntary Contributions (AVC) page for more information.
No, a transfer is not possible due to financial hardship.
Under the OMERS Plan terms, you can only transfer theof your OMERS Plan benefit to a LIRA or LIF if you terminate employment with an OMERS employer and:
At the date of your termination of employment, you are not within 10 years of your(NRA), which is age 55 if your NRA is 65 or age 50 if your NRA is 60; and
You elect to transfer the CV of your benefit within the required 6-month election period (after the election period, this option is no longer available).
If you are eligible to make a transfer and elect to do so, you may be able to apply to unlock the funds with the financial institution holding your account.
Please note: If you elect to transfer the CV of your OMERS Plan benefit, you must also withdraw the full amount of your Additional Voluntary Contributions (AVC) account from the OMERS Plan. At this point, you will no longer be considered an OMERS Plan member.
Remember: If you are eligible forat the time you terminate employment with an OMERS employer, you do not have the option to transfer the CV of your OMERS Plan benefit to a LIRA or LIF. For example, if you are an NRA 65 member and terminate employment on or after age 55, or if you are an NRA 60 member and terminate employment on or after age 50, you won’t have the option to transfer CV of your OMERS Plan benefit to a LIRA or LIF. Read our Employment Changes page for more information.
Yes. If you have a shortened life expectancy, you may be able to access your OMERS Plan benefit. Read the Member Handbook for more information.
Disability Application Process
The Member Handbook and Disability Benefits page summarize the eligibility requirements for disability benefits. If the medical review process results in a finding that you do not meet the applicable definition oforunder the OMERS Plan terms, your time off work would still be available to purchase in accordance with the OMERS Plan terms. Leave purchases are facilitated through your OMERS employer. Please note that purchase deadlines apply and the cost may vary depending on the type of leave you are on.
Our physician may determine that you do not or no longer qualify for the OMERS disability benefit. This decision is based on their opinion that your illness/incapacity does not meet the OMERS definition of ''totally disabled'' or “totally and permanently disabled” at the relevant time. If you would like to appeal, you may send OMERS additional medical evidence for our physician to review in considering whether you are or continue to be eligible to receive a disability benefit.
Your disability claim will be placed on hold until OMERS receives medical information or receives a Forfeiting rights to disability benefits (Form 148) to close the claim. A decision is required from members regarding whether they will complete their application for disability benefits before any benefit can be paid out of the OMERS Plan. This means, for example, that when you are ready to retire, your pension payments may be delayed until you make a final decision regarding completing or withdrawing a disability claim.
No, if you have ended your employment with an OMERS employer (including by reason of retirement), you are not eligible to apply for disability benefits.
If your miss your medical documentation submission due date, your claim will be placed on hold until OMERS receives medical information for review. OMERS will review the medical documentation once you submit it. Please note that delaying the submission of required documentation can delay and complicate the administration of disability benefits. You are encouraged to submit all required documentation as soon as possible.
To qualify for OMERS disability benefits, a member cannot engage in any occupation for compensation or profit other than an occupation associated with an approved rehabilitation program with their OMERS employer, as approved by OMERS. If you are engaged in employment, you do not qualify for OMERS disability benefits and must notify OMERS as soon as possible.
No, OMERS is not responsible for any costs associated with either completing these forms or providing medical documentation to OMERS.