The Cost to Buy the Service Adjustment

The cost to buy the service adjustment related to normal retirement age 60 conversion will change as you get older.

  • Generally speaking, the cost will increase as you approach the age you become eligible for an unreduced normal retirement age 60 pension (Note 1). Then, the cost typically starts to decrease and will reduce to zero around the age you become eligible for an unreduced normal retirement age 65 pension (Note 2). 
  • The cost is based on a number of variables, including your age and salary and the actuarial assumptions in effect at the time the calculation is performed. A change to any of these variables may increase or decrease the cost.

OMERS automatically restores any service adjustment still on your record if you are still an active member when the cost has reduced to zero.

Example

After working as a civilian for 10 years, Todd became a police officer and his normal retirement age changed from 65 to 60. As a result of the normal retirement age conversion, an adjustment was applied to his normal retirement age 65 credited service. His credited service was reduced by 2.5 years. Todd did not buy the 2.5-year service adjustment. When Todd turned 58, the cost to buy the service adjustment had reduced to zero. Since he was still working as a police officer at this point, OMERS automatically restored the 2.5 years of credited service and provided Todd with a notice and updated credited service record.

Note 1
 You are eligible for an unreduced normal retirement age 60 pension at age 60, regardless of your service, or when you are at least age 50 and you have 30 years of service* or the 85 Factor (age + plus service* = 85). 
Note 2 You are eligible for an unreduced normal retirement age 65 pension at age 65, regardless of your service, or when you are at least age 55 and you have 30 years of service* or the 90 Factor (age + plus service* = 90). 

*Includes credited plus eligible service