Divestment Transfers Between OMERS and OPTrust, HOOPP or OPB

The information in this section is intended for members whose pension membership was "split" between OMERS and OPTrust, HOOPP or OPB - due to certain public sector restructurings that took place before January 1, 2014.

Updates

Transfer Agreement Update
Pension divestment transfer agreement for eligible retired and inactive members
Pension divestment transfer agreement for active members

Additional information

Note: Divestment transfers involving police members are covered under a separate transfer agreement


Transfer Agreement Update

May 12, 2016

On May 2, 2016, the Ontario Pension Board (OPB), entered into the pension divestment transfer agreement for eligible retired and inactive members (Agreement) that was previously signed by OMERS, the OPSEU Pension Trust (OPTrust) and Healthcare of Ontario Pension Plan (HOOPP).

Now that OPB has signed the Agreement, eligible retired and inactive members who were affected by a past divestment before January 1, 2014, involving OPB and OMERS, OPTrust and HOOPP will have options to merge their separate pensions. This is similar to the divestment process that OMERS implemented in 2014 for eligible active members.

Eligible OMERS members with service in OPB will receive the same information as eligible members with service in OPTrust and HOOPP: a transfer-options application form and then, if they wish, a one-time opportunity to make a transfer election to merge their two separate pensions into one.

The transfer-options application form will be sent to eligible members this spring-summer, and personalized information packages, containing their transfer details and election form, will be sent later in 2016 to eligible members who request them.

Next steps

  • Through this spring-summer, OMERS and OPB will send information, including a transfer-options application form, to their eligible retired or inactive members – divested members who retired or terminated on or after May 18, 2010.
  • Members who request their transfer options will receive additional information through a personalized information package, later in 2016, which would include an election form.

Transfer Agreement Update

November 2, 2015

On November 2, 2015, the Healthcare of Ontario Pension Plan (HOOPP), entered into the pension divestment transfer agreement (Agreement) previously signed by OMERS and the OPSEU Pension Trust (OPTrust).

OMERS previously entered into a past divestment transfer agreement for eligible retired and inactive members with OPTrust. Now that HOOPP has signed the Agreement, eligible retired and inactive members who were affected by a past divestment before January 1, 2014, involving OMERS, OPTrust and HOOPP will have options to merge their separate pensions. This is similar to the divestment process that OMERS implemented in 2014 for eligible active members.

Eligible OMERS members with service in HOOPP will receive the same information as eligible OMERS members with service in OPTrust. They will receive a transfer-options application form and then, if they wish, a one-time opportunity to make a transfer election to merge their two separate pensions into one.

The transfer-options application form will be sent to eligible members later this year, and personalized information packages, containing their transfer details and election form, will be sent in 2016 to eligible members who request them.

Next steps

  • Through the end of 2015, OMERS, OPTrust and HOOPP will send information, including a transfer-options application form, to their eligible retired or inactive members – divested members who retired or terminated on or after May 18, 2010.
  • Members who request their transfer options will receive additional information through a personalized information package, which would include an election form.
  • OPB may also enter into the Agreement at a later date. (If they do, their eligible retired and inactive members will receive similar information to that sent to OMERS, OPTrust and HOOPP members.)

OMERS enters into a past divestment transfer agreement for eligible retired and inactive members

Transfer Agreement Update
August 12, 2015

OMERS (for the OMERS Primary Pension Plan) has entered into a past divestment transfer agreement for eligible retired and inactive members with OPTrust (for the OPSEU Pension Plan). This will allow eligible retired and inactive members who went through a past divestment involving both the OMERS Primary Plan and the OPSEU Pension Plan to merge their separate pensions.

This is similar to the divestment process that OMERS implemented in 2014 for eligible active members.

A divestment occurs when part or all of an employer's business and employees are transferred to another employer – usually, between municipal and provincial governments. As a result, affected members have to leave their original pension plan and join their new employer's pension plan, and they have two separate pensions.

The past divestment transfer agreement for eligible retired and inactive members will provide eligible members with a one-time-only option to merge these two pensions into one.

Background

In 2009, the Ontario government introduced legislation to address the transfer of pension assets for eligible divested members. In 2014, the option to merge separate pensions for certain public sector divestments that occurred before January 1, 2014 became available to active members.

On July 24, 2014, the Ontario government passed pension legislation amendments in Bill 14, which included provisions to remove specific transfer restrictions for eligible retired and inactive members. Inactive members are those who have left their pension in the plan but not yet begun to receive pension payments.

With the restrictions removed, OMERS, OPTrust, HOOPP (for the Healthcare of Ontario Pension Plan), and the Ontario Pension Board (OPB – for the Public Service Pension Plan) have been working together to develop a transfer agreement (the "Agreement") to allow eligible retired and inactive members to merge their separate pensions. (These plans had previously entered into an agreement in 2014 to allow eligible active members to merge their pensions.)

Next steps

  • This fall, OMERS and OPTrust will send information, including a transfer-options application form, to their eligible retired or inactive members – divested members who retired or terminated on or after May 18, 2010.
  • Members who request their transfer options will receive additional information and an election form.
  • HOOPP and OPB may also enter into the Agreement at a later date. (If they do, their eligible retired and inactive members will receive similar information to that sent to OMERS and OPTrust members.)

Past divestment transfer agreement for eligible retired and inactive members

View Second Divestment Pension Transfer Agreement PDF File [7.51MB]

Pension Divestment Transfer Notices

More information

OMERS will provide updates on our website as they become available.


Pension Divestment Transfer Agreement and Bill 14

Transfer Agreement Updates
Update, August 20, 2014

On August 20, 2014, the Ontario Pension Board (OPB), the administrator of the Public Service Pension Plan (PSPP), entered into the pension divestment transfer agreement (agreement) previously signed by OMERS, the Healthcare of Ontario Pension Plan (HOOPP) and the OPSEU Pension Trust (OPTrust).

When OMERS, HOOPP and OPTrust entered into the agreement earlier in the year, OPB was not able to sign as specific government approvals, through an Order-in-Council (OIC), were required. OPB has obtained the required OIC and signed the agreement. As a result, the agreement now covers divestment transfers between the OMERS Primary Pension Plan, HOOPP, OPSEU Pension Plan and the PSPP.

Eligible OMERS members with service in the PSPP will receive the same information as eligible OMERS members with service in HOOPP and/or the OPSEU Pension Plan. They will also receive an advance notice and a one-time opportunity to make a transfer election. Personalized information packages, containing their transfer details and election form, will be sent to this group of eligible members later this year.

Information below regarding the transfer calculations, eligibility under the transfer agreement and mailing addresses also applies to members with service in the PSPP.

Bill 14

On July 24, 2014, the Ontario government passed Bill 14, Building Opportunity and Securing Our Future Act (Budget Measures), 2014, that extends the deadline for completing all past divestment transfers from June 30, 2015 to June 30, 2016, and contains provisions to remove specific transfer restrictions for eligible retired and former members.

Bill 14 reintroduced previously proposed amendments to the past divestment provisions under section 80.1 of the Pension Benefits Act.

Now that the changes introduced in Bill 14 are effective, OMERS along with the other affected pension plan administrators will evaluate the impact on affected members and determine the applicable next steps. Further information will be provided as new developments arise.

Update May 20, 2014

On May 20, 2014, OMERS entered into a pension divestment transfer agreement (agreement) with the Healthcare of Ontario Pension Plan (HOOPP) and the OPSEU Pension Trust (OPTrust). As a result of this agreement, OMERS is now preparing to provide divested OMERS members, who are eligible under the agreement (eligible members), with an option to transfer the value of their pension benefits under their former pension plan into their current pension plan. If eligible members choose not to transfer their pension benefits, the benefits will remain separate under both plans.

OMERS is currently working with HOOPP and OPTrust to provide eligible members with a one-time opportunity, later this year, to make their transfer election.

Eligible members will receive an advance notice to ensure that they are aware of recent developments concerning past divestments. Then, between August and October 2014, eligible members will receive their personalized information packages, with their transfer details and election form.

The transfer calculations to be included in these personalized information packages will not be affected by when the packages are sent, since they will be based on a common calculation date, as set out in the agreement.

To be eligible under the transfer agreement, the divestment transfer must be between the OMERS Primary Pension Plan, Healthcare of Ontario Pension Plan and OPSEU Pension Plan. In addition, a divested member must meet the following criteria:

    i) They were affected by a public/broader public sector divestment in Ontario that occurred before January 1, 2014.
    ii) They are still employed by their current employer (the employer they transferred to as a result of the divestment) and are an active member of their current pension plan.
    iii) They are currently entitled to pension benefits from both their former pension plan and their current pension plan.

Divested members who terminate employment with their current employer and/or who start to receive a pension from either pension plan before their current pension plan administrator receives their completed election form will no longer be eligible for the transfer.

OMERS members who believe that they may be covered under the agreement should confirm that their current mailing information is on record with OMERS and the administrator of their other pension plan – to ensure receipt of both their advance notice and personalized information packages.

The Pension Divestment Transfer Agreement

The Pension Divestment Transfer Agreement PDF File [7.51MB] and Frequently Asked Questions PDF File [33KB] for divested members are posted on OMERS website.

Other Updates

Find out more about special information sessions and webinars for eligible members.

Further information will be provided as it becomes available.

For more information on divestments: