Plan Changes
Plan Changes Currently Under Consideration
OMERS keeps a close eye on the Plan to see if changes are either required or desirable due to the funding status and long-term sustainability of the Plan, changes in the pension environment or a need to evolve the plan. The OMERS Sponsors Corporation (SC) will generally, at a minimum, communicate any proposed plan change that is being considered by the SC Board on omers.com at least 21 days before the decision.
The following Plan amendment is being currently considered by the SC Board:
Posted: May 12, 2023
In response to feedback received by OMERS, the OMERS SC Board is considering a proposed amendment that would update the conversion methodology that applies when an eligible member moves or “converts” from a normal retirement age (NRA) of 65 years to 60 years. This proposed amendment only applies to Plan members who have the option to have a NRA of 60, subject to negotiation (i.e., police officers, firefighters and paramedics).
Under the current methodology, when an eligible member converts from having an NRA of 65 to an NRA of 60, there is an adjustment to the member’s credited service to reflect the NRA 60 early retirement benefits. The adjustment is based on a flat rate of 25% (if the member is age 60 or over, the adjustment is 5% of the difference between age 65 and the member’s age). The proposed amendment would update the conversion methodology by also incorporating an actuarial calculation that is more tailored to a member’s individual circumstances, such as their age and service.
The amendment will be considered by the OMERS SC Board on June 21, 2023 and, if approved, it would be effective the same day.
Recently Approved Plan Changes
Below are a list of recent Plan amendments approved by the SC Board.
2022
In response to feedback received by OMERS, on September 14, 2022, the OMERS SC Board approved a technical Plan change relating to the 2020 Plan amendment that expanded eligibility for non-full-time (NFT) employees to join the Plan.
Changes the enrolment date for non-full-time employees so that a non-full-time employee who elects to enrol in the Plan begins to participate in the Plan in their employer’s next available pay period following receipt of the election, and no later than the end of the month following the month in which the election is received.
This change was effective January 1, 2023.
2021
In 2021, and during the COVID-19 pandemic, , the Sponsors Corporation (SC) Board passed amendments on November 18, 2021 to extend, for an additional year, the temporary changes made in 2020 regarding leaves and temporary layoffs. The approved amendments are described below and were effective January 1, 2022. The third pandemic-related amendment from 2020 regarding the minimum employment requirement for purchases of periods of reduced pay (described above) will continue to recognize applicable changes to the Income Tax Regulations if they occur.
Extends the deadline to complete a leave purchase by one year for members who return from a leave of absence in 2022 (i.e., extending to December 31, 2024).
Allows members to purchase credited service for periods of absence due to a temporary layoff that is initiated in 2022. The service can be purchased at two times contributions (member only, i.e., by a member who pays both the member and employer share of the contributions).
In addition to the amendments listed above, minor housekeeping changes to the Plan were made to align section references. These changes do not impact Plan members.
2020
Following the 2020 Plan Review process, on June 24, 2020, the OMERS Sponsors Corporation Board (SC Board) approved five amendments to the OMERS Primary Pension Plan (Plan). Following are the approved amendments.
The first three amendments were considered because of the exceptional circumstances presented by the COVID-19 pandemic and became effective immediately.
The final two amendments were considered as a part of the annual Plan review and became effective January 1, 2023.
Extending leave purchase deadlines
Extends the deadline to complete a leave purchase by one year for members who return from a leave of absence in 2020 or 2021 (i.e., extending to December 31, 2022, or December 31, 2023, depending on the return date).
See the 2021 changes noted above for more information about the extension of this temporary change into 2022.
Read our Frequently Asked Questions
Allows members to purchase credited service for periods of absence due to temporary layoff that were initiated in 2020 or 2021. The service can be purchased at two times contributions (member only, i.e., by a member who pays both the member and employer share of the contributions).
See the 2021 changes noted above for more information about the extension of this temporary change into 2022.
Read our Frequently Asked Questions
Reduces or eliminates the 36-month employment requirement for purchases of periods of reduced pay, subject to changes 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 to set aside this requirement for the 2021 year on May 20, 2021. The draft regulations have now come into force. The amendment passed by the Sponsors Corporation (SC) Board on June 24, 2020 placed OMERS in a position to seamlessly adapt to the change in the employment requirement under the Income Tax Regulations. With this amendment, members are eligible to purchase periods of reduced pay in 2020 and 2021 without consideration to the 36-month employment requirement.
Read our Frequently Asked Questions
Removes the eligibility requirement for non-full-time employees to join the Plan so that all non-full-time employees may elect to join the Plan at any time. Enrolment in the Plan would take effect on the first day of the month after the employee’s election is received and would remain in place as long as the member continues working with their current employer.
This change is effective January 1, 2023.
Provides the option for the Sponsors Corporation (SC) Board, based on its annual assessment of the Plan’s health and viability, to reduce future inflation increases on benefits earned after December 31, 2022.
This change is effective as of January 1, 2023 and does not affect benefits earned before that date. This means that when you retire, the 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 Shared Risk Indexing, meaning that the level of indexation will depend on the SC Board’s annual assessment of the financial health of the Plan.