Normal Retirement Age
Most members have aof 65. Most police and firefighter members have an NRA of 60 years or “NRA 60”. Effective January 1, 2021, paramedic members are also eligible to have an NRA 60.
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.
The Basics
Your NRA affects:
1. The earliest age you can start your pension.
You can start your pension within 10 years of your NRA if you have stopped working with an OMERS employer. This is called your:
if you have an NRA 65, you can retire as early as age 55.
if you have an NRA 60, you can retire as early as age 50.
Example
Joe is 52 years old and has an NRA 60. If Joe retires from employment with his OMERS employer, he can start his pension as soon as the first of the month following his last day of work. As explained below, depending on Joe’s service under the OMERS Plan, he may be eligible for a reduced or an unreduced early retirement pension. If Joe had an NRA 65, he would have to wait until he turned age 55 to start his pension.
2. When you qualify for an unreduced early retirement pension.
If you have an NRA 65, you qualify for an unreduced pension at age 65, regardless of your service, or if you are at least age 55 and:
You have 30 years or more of service (plus); or
Your age + your credited service + your eligible service = 90 (the "90 Factor")
If you have an NRA 60, you qualify for an unreduced pension at age 60, regardless of your service, or if you are at least age 50 and:
You have 30 years or more of service (credited service plus eligible service); or
Your age + your credited service + your eligible service = 85 (the "85 Factor")
3. Retiring early with a reduced or an unreduced pension.
Example
Sue is an NRA 60 member who is age 59 and has 26 years of service under the OMERS Plan when she decides to retire from employment. Sue qualifies for an immediate unreduced pension because her age plus service equals 85 (59 + 26 = 85).
If Sue were an NRA 65 member, she would not qualify for an immediate unreduced pension because she does not have the 90 Factor or 30 years of service. Sue could still retire early because she is over age 55 at the time she stops working with her OMERS employer, but Sue’s OMERS pension would be reduced. In this case, Sue would have to work another 2.5 years to qualify for the 90 Factor if she wanted to retire with an unreduced pension (in 2.5 years, Sue will be age 61.5 and have 28.5 years of service, which add up to 90).
Note: The formula to calculate retirement and disability pensions, inflation protection and survivor benefits is the same for both NRA 60 and NRA 65 members. NRA does not affect the OMERS Plan pension formula, survivor benefits or inflation protection.
4. Eligibility for bridge benefits and commuted value transfers.
Eligibility for bridge benefits can be different for NRA 60 members and NRA 65 members if they terminate employment with their OMERS employer before their early retirement birthday (age 55 for NRA 65 members and age 50 for NRA 60 members).
It is important to remember that, as of January 1, 2013, benefit calculation changes affect all members if they leave employment with their OMERS employer before their. Read more in the Member Handbook under “Benefit calculation changes”.
Similarly, the different early retirement birthdays for NRA 60 and NRA 65 members can affect the ability to transfer the commuted value of your OMERS pension. If you leave your OMERS employer, the option to transfer the commuted value of your OMERS pension to another retirement savings vehicle such as a locked-in retirement account (LIRA) or for the purchase of an annuity from a licensed annuity provider ends the day before your early retirement birthday.
For more information about employment changes and commuted values, visit the "Employment Changes" page.
Normal Retirement Age Conversion
Your NRA can change (i.e., be “converted”) when:
You move to another OMERS employer or change your occupation while working with the same OMERS employer, (e.g., if an NRA 65 member becomes a police officer in a class that has an NRA 60, the member’s NRA will change from 65 to 60); or
Your OMERS employer elects to change the NRA for the class of employees that you belong to by updating the employer’s OMERS participation by-law/resolution.
In the second type of scenario, the change must be made for all or a class of police officers, firefighters or paramedics of the employer (not individuals). This is the case for all NRA class changes – 65 to 60 and vice versa.
Normal Retirement Age Conversion: 60 to 65
If yourchanges from 60 to 65:
You are immediately entitled to benefits available to NRA 65 members.
You and your OMERS employer begin to make contributions at the NRA 65 rates in each pay period – the rates are lower than the NRA 60 rates (see the "Contribution Rates" page).
Your excess member contributions are refunded with interest (paid at the applicable CANSIM rate). Excess member contributions are past contributions made when your NRA was 60 minus the amount you would have otherwise contributed during this time had you been an NRA 65 member.
Example
Jane is 52 years old, has 30 years of, and has had an NRA 60 since enrolling in the OMERS Plan.
If Jane’s NRA changes to age 65:
The earliest age Jane could retire would now be age 55 (i.e., Jane would have to wait an additional three years to start an early retirement pension).
Jane’s employer would immediately start to deduct contributions at the lower NRA 65 contribution rates from her contributory earnings in each pay period.
In respect of Jane’s prior 30 years of credited service, excess member contributions made at the NRA 60 rates, plus interest, would be refunded.
When Jane retires from employment, her OMERS pension amount would be based on her years of credited service at the time of her retirement. For example, if Jane retires at age 55 with 33 years of credited service, 33 years of credited service would be used to calculate her OMERS pension.
Example
Tom is 48 years old, has 21 years of credited service and has had an NRA 60 since enrolling in the OMERS Plan. Tom plans to retire from employment at age 57 when he will have 30 years of credited service.
If Tom’s NRA changes to 65:
Tom’s employer would immediately start to deduct contributions at the lower NRA 65 contribution rates in each pay period.
In respect of Tom’s prior 21 years of credited service, excess member contributions made at the NRA 60 rates, plus interest, would be refunded.
Tom can still retire at age 57 with an unreduced pension because his early retirement birthday will be 55 and he will have 30 years of service at that time.
Tom’s monthly pension amount would be based on years of credited service at retirement. In this case, this is 30 years of credited service if he retires from employment at age 57.
Normal Retirement Age Conversion: 65 to 60
If yourchanges from 65 to 60:
You are immediately entitled to benefits available to NRA 60 members.
You and your OMERS employer begin to make contributions at the NRA 60 rates (see the "Contribution Rates" page).
A service adjustment is applied in most cases to your credited service. Generally, past credited service is reduced to reflect entitlement to NRA 60 benefits (see Service Adjustment information below).
Shortly after a conversion from NRA 65 to NRA 60, OMERS provides you with a package detailing your: (i) updated credited service based on the service adjustment calculation, (ii) the conversion cost to buy the service adjustment; and (iii) an election form and instructions for paying the conversion cost.
Effective June 21, 2023, the service adjustment calculation will be based on the lowest of the following three percentages:
25% if you are under age 60 or, if your age is 60 or more, 5% multiplied by each year between your 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 your benefit immediately before and after conversion).
It is possible that some members may not have a service adjustment. Specifically, if an NRA 65 member is eligible for an unreduced pension at the time of a conversion to NRA 60, the service adjustment is 0 (as is the conversion cost). For example, if a member is age 55 or older and has 30 years of credited and eligible service or the 90 Factor (age plus credited service plus eligible service equals 90) at the time of a conversion to NRA 60, the member qualifies for an unreduced NRA 65 pension and an unreduced NRA 60 pension. This means that no service adjustment is applicable.
The conversion cost 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 in effect at the time the calculation is performed. A change to any of these variables may increase or decrease the conversion cost.
Note: A different conversion cost may be applicable to some members who have previously had an NRA 60 while participating in the OMERS Plan prior to their most recent NRA Conversion.
The conversion cost to buy the service adjustment related to NRA 60 conversion will change as you get older.
Generally speaking, the conversion cost will increase as you approach the age you become eligible for an unreduced NRA 60 pension (i.e., as you approach age 60, the 85 Factor, or 30 years of service). Then, the cost typically starts to decrease and will reduce to zero around the age you become eligible for an unreduced NRA 65 pension (i.e., when you reach age 65, the 90 Factor, or 30 years of service).
It is also important to remember that each conversion cost amount you receive is only valid for 6 months. The conversion cost can go up or down and the changes can be significant based on the member’s age, contributory earnings, and prevailing actuarial assumptions and interest rates in effect at the time the conversion cost is determined.
Any outstanding (i.e., unpurchased) service reduction is automatically restored for an active member at the time the conversion cost has reduced to zero.
Example
After working as a civilian for 10 years with an OMERS employer, Todd became a police officer at age 38. Todd’s OMERS employer has an existing OMERS participation by-law in place that states that all employees who are police officers have an NRA 60. As a result, Todd’s NRA changes from 65 to 60 once he becomes a police officer.
As a result of the NRA conversion, the service adjustment described above was applied to Todd’s NRA 65. After his NRA conversion, OMERS sent him a package that explained that the service adjustment reduced his credited service by 2.0 years (or 20%) and the amount of the conversion cost to purchase the service adjustment. After reviewing the package. Todd decided not to purchase the service adjustment.
In Todd’s case, if he continues to work with his OMERS employer as a police officer until age 58, the cost to buy the service adjustment will be zero. In this scenario, OMERS would automatically restore the 2.0 years of credited service when Todd turns age 58. Todd would be provided with notice of the change and updated credited service record.
You can buy the service adjustment as long as you are anof the OMERS Plan (i.e., you are still working with your OMERS employer and making contributions).
If you retire or otherwise leave your OMERS employer and you still have a service adjustment on your record, you are given a final opportunity to buy it. Note that this opportunity is not available to your survivors in the event of your death.
The service adjustment counts as, even if you don’t buy it.
Members are encouraged to review the option to purchase the service adjustment carefully and consult any independent financial advice they need in order to consider how their OMERS Plan benefit fits into their career journey and retirement plans.
Whatever you decide, please note that each conversion cost you receive is valid for six months. If you do not make your election or pay for the service adjustment by the expiry date on the election form, you can contact OMERS Member Experience to request an updated conversion cost. The conversion cost can go up or down and the changes can be significant based on the member’s age, contributory earnings, and prevailing actuarial assumptions and interest rates in effect at the time the conversion cost is determined.
Examples
Dev is 45 and has 20 years of credited service when his NRA changes from 65 to 60. At the time of the NRA conversion, the service adjustment calculation reduces his credited service by 10% (i.e., Dev’s credited service is reduced by 2 years). Dev can increase his 18 years of credited service as an NRA 60 member by buying none, some, or all of the 2-year service adjustment.
If Dev does not purchase the 2-year service adjustment, it would still count as 2 years of eligible service and would continue to be used to determine when Dev is eligible for his earliest unreduced retirement under the OMERS Plan (i.e., the earliest of reaching age 60, 30 years of service, and the 85 Factor in Dev’s case).
If Dev continues to work with his OMERS employer to the point where he would have become eligible for an unreduced pension (at approximately age 55 in this example when Dev reaches both 30 years of service and the 85 Factor), OMERS would automatically restore the service adjustment.
Frequently Asked Questions
What are my payment options?
Your payment options include:
Personal cheque payable to OMERS (OMERS will issue a tax receipt for the payment received).
Transfer from a registered retirement savings plan (RRSP) or locked-in retirement account (LIRA).
Transfer from another registered pension plan (RPP).
Withdrawal from your OMERS Additional Voluntary Contributions (AVC) account.
Is it true that the conversion cost could decrease over time to zero?
Generally speaking, the conversion cost will increase as you approach the age you become eligible for an unreduced NRA 60 pension (i.e., as you approach age 60, the 85 Factor, or 30 years of service). Then, the conversion cost typically starts to decrease and will reduce to zero around the age you become eligible for an unreduced NRA 65 pension (i.e., when you reach age 65, the 90 Factor, or 30 years of service).
The cost is based on several variables, including your age, contributory earnings, and the actuarial assumptions and interest rates in effect at the time the calculation is performed.
Any outstanding (i.e., unpurchased) service reduction is automatically restored for an active member at the time the conversion cost has reduced to zero.
What is the best time to purchase the service adjustment?
The decision whether to buy the service adjustment, and the best time to do so, is unique to each member. You are encouraged to review the option to purchase the service adjustment carefully and consult any independent financial advice you need in order to consider how your OMERS Plan benefit fits into your career journey and retirement plans.
It is also important to remember that each conversion cost amount you receive is only valid for 6 months. The conversion cost can go up or down and the changes can be significant based on your age, contributory earnings, and prevailing actuarial assumptions and interest rates in effect at the time the conversion cost is determined.
Can I buy the service adjustment after termination of employment (including retirement)?
No. You must buy the service adjustment while still an active member of the OMERS Plan. A final opportunity to finish a purchase is provided to members at termination of employment (including retirement).
If I purchase all or a portion of the service adjustment, is a refund possible later?
No. The election to make the purchase is irreversible. There is no refund of the purchase for NRA 60 members, including if you continue 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 you paid.
It may be helpful to think of purchasing the service adjustment as similar to the decision to buy insurance. For example, many people buy home insurance and never make a claim on their home insurance policy. Although there is no refund of premiums for not making a claim, they purchase the insurance to protect themselves against future events they cannot predict. Similarly, OMERS members cannot always predict when they will retire or terminate employment with an OMERS employer. Buying the service adjustment also protects the member if they die before the conversion cost starts to decrease.
If you buy the service adjustment, the associated credited service will be added to your member record immediately and would be used to determine your OMERS Plan benefit in the event of your retirement, termination from your OMERS employer, disability or death.
Case Study 1
Judd is working for a local municipality when he becomes a paramedic and his NRA changes from 65 to 60. He is 45 years old and has 21 years ofin the OMERS Plan at the time of this NRA conversion.
How does this affect Judd?
Judd’s employer will start deducting contributions at the higher NRA 60 rates in each pay period from Judd’s contributory earnings.
The service adjustment is applied to Judd’s credited service and his credited service is reduced by 3.0 years (or 14.3%).
Judd now has 18 years of credited service (21 – 3 = 18 years) as an NRA 60 member.
OMERS will send Judd a package detailing the service adjustment, the conversion cost to restore the service adjustment and an election form and instructions. Judd can buy none, some, or all of the 3.0 years of credited service.
If Judd pays the full conversion cost, he will have 3.0 more years of credited service as an NRA 60 member.
If Judd decides not to buy the service adjustment:
Judd will have 18.0 years of credited service plus 3.0 years of.
Judd can request an updated conversion cost and buy some or all of the 3.0 years of credited service any time before he stops being an active OMERS member.
The conversion cost to buy the 3.0 years of service will change as Judd gets older:
Generally speaking, the cost will increase as he approaches the age he becomes eligible for an unreduced NRA 60 pension (in Judd’s case, it is expected that this will be when Judd reaches age 54 as he will have 30 years of combined credited and eligible service). At this point, the cost starts to decrease and reduces to zero around the age he is eligible for an unreduced NRA age 65 pension (in Judd’s case, while he reaches 30 years of service at age 54, his earliest retirement opportunity as an NRA 65 member is age 55).
The conversion cost is based on a number of variables, including Judd’s age, contributory earnings and the prevailing interest rates and actuarial assumptions in effect at the time the calculation is performed. A change to any of these variables may increase or decrease the conversion cost.
If Judd is anof the OMERS Plan when there is no cost to buy the service adjustment, OMERS automatically restores the credited service.
As explained above, buying the service adjustment is similar to buying insurance. If Judd buys the service adjustment before the conversion cost reaches $0, the credited service is added to his record immediately and increases his OMERS Plan pension benefit that would be payable in the event of his death, retirement, disability or termination of employment from his OMERS employer. However, if he continues to work to a point when the conversion cost would have otherwise reduced to below what he paid, there would be no refund of his payment.
Case Study 2
Jane is a civilian working for the local police board and participates in the OMERS Plan as an NRA 65 member. Janes becomes a police officer and her NRA changes from 65 to 60. At the time of NRA conversion, Jane is 40 years old and has 11 years of credited service in the OMERS Plan.
How does this affect Jane?
Jane’s employer will start deducting contributions at the higher NRA 60 rates in each pay period from Jane’s contributory earnings.
The service adjustment is applied to Jane’s credited service and her credited service is reduced by 2.5 years (or 22.7%).
Jane now has 18 years of credited service (11 – 2.5 = 8.5 years) as an NRA 60 member.
OMERS will send Jane a package detailing the service adjustment, the conversion cost to restore the service adjustment and an election form and instructions. Jane can buy none, some, or all of the 2.5 years of credited service.
If Jane pays the full conversion cost, she will have 2.5 more years of credited service as an NRA 60 member.
If Jane decides not to buy the service adjustment:
Jane will have 8.5 years of credited service plus 2.5 years of.
Jane can request an updated conversion cost and buy some or all of the 2.5 years of credited service any time before she stops being an active OMERS member.
The conversion cost to buy the 2.5 years of service will change as Jane gets older:
Generally speaking, the cost will increase as she approaches the age she becomes eligible for an unreduced NRA 60 pension (in Jane’s case, it is expected that this will be when she reaches the 85 Factor at age 57). At this point, the cost starts to decrease and reduces to zero around the age she is eligible for an unreduced NRA age 65 pension (in Jane’s case, this is age 59 when she has 30 years of combined credited and eligible service).
The conversion cost is based on a number of variables, including Jane’s age, contributory earnings and the prevailing interest rates and actuarial assumptions in effect at the time the calculation is performed. A change to any of these variables may increase or decrease the conversion cost.
If Jane is anof the OMERS Plan when there is no cost to buy the service adjustment, OMERS automatically restores the credited service.
