About Your OMERS Pension

Are you a retired member? Find everything you need to know about OMERS pensions, taxes and inflation protection below.

OMERS pension payments

• Pension payments by direct deposit arrive on the first banking day of the month. Most major Canadian banks will have the payment in your account the same day; credit unions and non-traditional banks may take an extra day or two.

• Pension cheques are mailed to arrive at the beginning of the month.

• More about  Pension payments and banking.

Pension payment dates for 2023

• January 3

• February 1

• March 1

• April 3

• May 1

• June 1

• July 4

• August 1

• September 1

• October 2

• November 1

• December 1

T4A tax slips

By the end of February each year, you can view and print your tax slip directly from your myOMERS account. OMERS will also mail your pension tax slip to your home by the end of February each year.

Inflation Protection

Inflation protection increases OMERS retirement, disability and survivor pensions each year, based on the increase in the Consumer Price Index (CPI), as follows:

• Benefits earned on or before December 31, 2022 receive full inflation protection, up to a maximum increase of 6%. Any excess is carried forward to later years when the CPI increase is less than 6%, provided the pension is still in pay.

• Benefits earned on or after January 1, 2023 are subject to Shared Risk Indexing (SRI), meaning that the level of inflation protection will depend on the OMERS Sponsors Corporation (SC) Board’s annual assessment of the financial health of the OMERS Plan.

In accordance with the OMERS Plan terms, the increase as of January 1, 2024 is 4.42%. The 2023 inflation adjustment exceeded the 6% maximum by 0.51%. As a result, members and survivors who received an inflation adjustment on January 1, 2023 (e.g., those whose pensions commenced before December 2022) and whose pension is still in pay on January 1, 2024, will receive an excess adjustment of 0.51% that will be included in their 2024 inflation adjustment for a total of 4.93%.

In December, we send retired members and survivors a personalized Annual Statement of Pension showing the details of their January inflation adjustment. The statements are posted on the secure member portal myOMERSOpens new window or mailed to members who prefer to receive their pension information by paper mail.

Get your Annual Statement of Pension early! Activate your myOMERSOpens new window account to get your statement as soon as it is available online.

How inflation protection works

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 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 but 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 websiteOpens new window.

Pensions in respect of benefits earned on or after January 1, 2023 are subject to Shared Risk Indexing (see above).

How OMERS calculates the annual inflation increase

In respect of benefits earned prior to January 1, 2023, OMERS uses the average of the CPI for the 12-month period ending in October and compares it to the average for the same period the previous year. The percentage increase determines the inflation adjustment increase for eligible OMERS pensions, up to a maximum increase of 6%.

OMERS method of calculating the annual inflation increase (i.e., the CPI increase) is consistent with the method used by the Canada Pension Plan (CPP), except OMERS rounds the results to two decimal places while CPP rounds to one decimal place. For benefits earned prior to January 1, 2023, the applicable CPI increase will equal the OMERS inflation adjustment in most years except in the case where the CPI exceeds 6%.

In respect of benefits earned on or after January 1, 2023, increases are subject to Shared Risk Indexing, meaning that the level of inflation protection will depend on the OMERS Sponsors Corporation (SC) Board’s annual assessment of the financial health of the OMERS Plan.

How your first increase is pro-rated

Your first increase may be pro-rated based on the month your pension started. For example, the increase as of January 1, 2024 is 4.42%. If your pension started in February 2023, your 2024 increase would be 3.68% (which is 0.8333 of 4.42%), following the decision that the annual inflation adjustment to pensions in pay will not be impacted by SRI in 2024 and 2025. In January 2025, your pension will receive the full applicable 2025 increase provided the pension is still in pay.

The proration of your pension must be calculated in accordance with the OMERS Plan text, which sets out the proration factors. The table below shows the proration factors for each month. These factors represent the number of months remaining in the year after your first pension payment and determines the applicable increase to your pension on the following January 1. For example, if your pension started in February 2023, the 0.8333 proration effective on January 1, 2024 reflects the 10 months in 2023 that your pension was being paid (i.e., 10 months ÷ 12 months) after your first payment.

Following the decision that the annual inflation adjustment to pensions in pay will not be impacted by SRI in 2024 or in 2025, a pension that began in December 2023 will not get an increase in January 2024, but will get an increase in January 2025.

Who receives the 0.51% excess inflation adjustment on January 1, 2024?

Any member whose pension received an inflation adjustment effective January 1, 2023 and whose pension is still in pay on January 1, 2024 will receive the 0.51% excess inflation adjustment in addition to the 4.42% inflation adjustment effective January 1, 2024 for a total inflation adjustment of 4.93%.

Who was affected by the 6% maximum on January 1, 2023?

The 6% maximum inflation adjustment provided on January 1, 2023 affected Plan members who were in receipt of a pension and eligible for inflation adjustments. Specifically, all members and survivors of members with pensions in pay on January 1, 2023 were affected if they started their pensions prior to December 1, 2022.

In addition, the 6% maximum affected some deferred vested members who were eligible for pre-retirement indexing, which is the inflation protection OMERS applies to a member’s deferred benefit between the date a member stops working for an OMERS employer and the date their pension begins. Pre-retirement indexing is applicable for members who terminate employment with their OMERS employer after their early retirement birthday [55th birthday fornormal retirement age (NRA)Tooltip65 or 50th birthday for NRA 60]. Otherwise, pre-retirement indexing for a deferred vested pension is only applicable in respect of benefits based on pre-2013 credited service, if any.

Is the 6% maximum on inflation adjustments a new provision?

No, the 6% maximum inflation adjustment has been in the OMERS Plan text since the early 1990s. However, prior to January 1, 2023, the inflation adjustments have not exceeded 6%.

How is the excess inflation adjustment carried forward?

In respect of benefits earned prior to January 1, 2023, OMERS determines the CPI increase as the average of the CPI for the 12-month period ending in October over the average for the same period the previous year. If the CPI increase is greater than 6%, the inflation adjustment is 6% and the excess of the 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. Generally, the excess would be added to the following year’s inflation adjustment if it is possible to do so.

If a member passes away prior to the year that the excess amount is added to the inflation adjustment and no further benefits are payable at the member’s death, no further indexing will be applicable. If a pension is payable to the member’s surviving spouse and/or dependent children, the calculation of their pension amounts will continue to be eligible for inflation adjustments (including the excess inflation adjustment, if applicable).

Here’s an example: The January 1, 2023 inflation adjustment exceeded the 6% maximum by 0.51%. Using the inflation adjustment effective January 1, 2024 (applies to all benefits, as a result of the decision that the annual inflation adjustment to pensions in pay will not be impacted by SRI in 2024 or in 2025) of 4.42%, the impact on a $100 annual pension of a retired member or deferred vested member who is eligible for pre-retirement indexation will be different depending on the member’s circumstances. Consider the following three scenarios:

• Scenario 1: The member’s retirement or termination of employment occurred prior to 2022,

• Scenario 2: The member’s retirement or termination of employment occurred on June 1, 2022

• Scenario 3: The member’s retirement or termination of employment occurred on June 1, 2023

Here’s how pro-ration works: In Scenario 2, on January 1, 2023, the member received a pro-rated inflation adjustment (i.e., the 6% inflation adjustment was pro-rated to 3% because the pension was in pay, or became deferred, for half of 2022). In the example, the member in Scenario 2 would be eligible to receive the excess adjustment of 0.51% without pro-ration as part of the January 1, 2024 inflation adjustment, provided the member’s pension benefit is still payable. Contrast this to Scenario 3 where the member was an active member on January 1, 2023 and was not eligible for an inflation adjustment while still accruing benefits. In this case, the member receives their first inflation adjustment on January 1, 2024 based on the applicable CPI increase of 4.42% on a pro-rated basis.

Pension Payments and Banking

We pay OMERS pensions in equal monthly instalments at the beginning of the month. Most OMERS pension payments are made by direct deposit. Payments are also made by cheque.

Direct Deposit (available in Canada, the U.S. and the U.K.)

Pension payments by direct deposit are automatically deposited into your account on the first banking day of the month. (Note: this isn't always the first day of the month; it could be the first day banks are open after a weekend or holiday.)

• Direct deposit is safe and secure: you don't have to wait for a cheque to arrive by mail, and you don't have to be home to get your payment.

• You can easily change your address information online with myOMERS or by calling OMERS.

We can make direct deposit payments to most banks and financial institutions in Canada, the U.S. and the U.K. If you receive your pension in Canadian dollars, your 12 monthly pension payments in any year will be the same. Pensions paid in U.S. dollars or U.K pounds may fluctuate, depending on your bank's exchange rate. 

If your payment is not in your account by the first banking day of the month, contact your bank or OMERS Member Experience.

Setting up direct deposit pension payments

To have your pension directly deposited into your bank account every month…

• Submit a Changing information (retired member/survivor) form and complete the banking information section, or include a cheque marked “void” with the form.

• For a bank account in the U.S. submit a USA direct deposit request form.

• For a bank account in the U.K. submit a U.K. direct deposit request form.

Notify OMERS immediately of bank changes

For your protection, OMERS cannot make changes to your banking information by email.

• If you are a registered myOMERS user, you can change your banking information online.

• Submit a Changing information (retired member/survivor) form

• Send a signed letter to OMERS that includes your full name (printed); yourOMERS membership numberTooltip(or social insurance number); the effective date of the change; the new information (bank, branch, and account number), or a void cheque from the new account.

Tip: Keep your old account open until the deposit actually goes into your new account, in case we don't receive your new information in time for your next monthly payment.

Payments by cheque

• If you receive your monthly pension payments by cheque, you can expect to receive your cheque at the beginning of each month.

• If your cheque hasn't arrived within five business days, please contact OMERS Member Experience. If you live outside Ontario, in the U.S., or overseas, please allow 10 days.

• To change your address or other information:

  • Submit a Changing information (retired member/survivor) form; or

  • Send a signed letter to OMERS that includes your full name (printed), current address and phone number; yourOMERS membership numberTooltipor reference number (or social insurance number); the effective date of the change; and the new address information.

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

• 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., eyeglasses or prescription drugs bought outside Ontario; and

• it may have been several years since you assessed your medical insurance needs.

While we cannot endorse or guarantee any of these products or services from the organizations below, we have agreed to pass along their information to help with insurance planning.

Be sure to identify yourself as an OMERS member if you enquire about coverage for any of these special offers.

OMERS bridge benefit

While your lifetime pension is paid for life, the month after you turn 65 OMERS bridge benefit ends and 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 $66,600 in 2023).

• When you retire, your OMERS and CPP pensions work together to provide you with retirement income.

How we calculate your bridge benefit

0.675% xcredited serviceTooltip(years) x lesser of"best five" earningsTooltipor $61,840

$61,840 is the current five-year average (2019-2023) of CPP earnings limit.

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 Pension Plan (CPP) and other government benefits

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. Your CPP benefit is not sent automatically; you must apply for it. 

Application kits are available from Human Resources and Skills Development Canada either onlineOpens new window or from the local office in your area.

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.

MROO (Municipal Retiree Organization of Ontario) zone meetings

Each spring, the Municipal Retirees Organization of Ontario (MROO) hosts Zone Meetings across the province.

• MROO's president provides an update on MROO's advocacy on behalf of pensioners.

• OMERS staff share information about the pension plan and are available to answer questions.

• Guest speakers address a variety of topics of interest to retirees.

• All OMERS retirees are invited.

MROO Events CalendarOpens new window

Working While on Pension

For an OMERS employer

If you are receiving an OMERS pension and you return to work for an OMERS employer, you can:

• Stop your pension payments for as long as you are employed and re-enrol in the OMERS Plan; or

• Continue your OMERS pension payments and do not re-enrol in the OMERS Plan.

If you re-enrol in OMERS:

• Your employer should contact OMERS immediately so we can suspend your pension payments while you are working.

• Any pension payments received after re-enrolment must be repaid to the Plan, including any payment made in the month you re-enrol.

• When you subsequently retire or reach the latest date you may start to receive a pension (see below), your pension will be recalculated, taking into consideration your totalcredited serviceTooltip, contributory earnings, and the Plan provisions in effect at the time.

• If you work past age 71, your contributions to the Plan will stop on November 30 of the year in which you turn 71, and your OMERS pension will begin on December 1, regardless of whether you continue working.

• You cannot accumulate more than 35 years of service in the OMERS Plan.

Note: Effective January 1, 2021, OMERS will no longer cap your credited service. If you have not reached 35 years of credited service prior to this date, you will continue to contribute and accrue credited service in the Plan. If a member meets the 35-year cap before January 1, 2021, the limit will continue to apply. 

Working for a non-OMERS employer while on pension

If you work for a non-OMERS employer while on pension, it will not affect your pension payments.