Changes to how your pension is calculated would mean a substantial loss in benefits.

The actual impact of any Plan changes will vary from one member to the next based on their personal circumstances and choices. Many members will have the opportunity to earn larger pensions when combined with the enhanced CPP pension.

Here are the facts: 

  • The proposed changes will have a very limited impact on long-service members, because the current rules (including guaranteed indexing) will apply to all service before the effective date (presumably January 1, 2021).
  • Based on current data, most mid-service and short-service members won’t qualify for unreduced early retirement benefits for any number of reasons, including the fact that more people are joining OMERS at later ages and fewer members will qualify for unreduced early retirement in the future. Even now, the data show that a growing number of members are working past their earliest unreduced retirement date, and even their normal retirement date. That means introducing the new early retirement rules will have a very limited impact in the future.
  • Our analysis also confirms that most members, regardless of service, will receive higher combined pensions with the enhanced Canada Pension Plan benefits. 
  • The OMERS pension plan is currently integrated with the Canada Pension Plan. Together, the Plans combine to provide a maximum benefit equal to 70% of your earnings near retirement (2% of your earnings x 35 years of service).
  • Based on changes to the CPP, both CPP contributions and benefits will increase beginning in 2019. By adopting a new integration point, we have managed to keep total Plan contributions (member and employer) in check, to a degree.
  • At the same time, the total combined pension (OMERS plus CPP) will increase for all members. 
  • In addition, under the proposed Plan changes, the intent is to sustain maximum levels of indexing – and to restore indexing payments – based on the Plan’s financial health. That means there is a very real potential to return pensions to the levels they would have been had indexing been provided at 100% for the full period.
Myth #5 - Moving to conditional indexing is just a way to cut benefits.
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