The Basics

Your normal retirement age affects:

1. The earliest age you can start your pension.

You can start your pension within 10 years of your normal retirement age:

  • If your normal retirement age is 65, you can retire as early as age 55.
  • If your normal retirement age is 60, you can retire as early as age 50.

EXAMPLE

Joe is 52 years old and has a normal retirement age of 60. He meets the OMERS age requirement for early retirement and he can start his pension immediately. If Joe’s normal retirement age were to change to 65, he would have to wait until he turns age 55 before he could start his pension.

2. When you qualify for an unreduced early retirement pension.

If your normal retirement age is 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*; or
  • Your age + your service* = 90 (the "90 Factor")

If your normal retirement age is 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*; or
  • Your age + your service* = 85 (the "85 Factor")

*Includes credited plus eligible service.

3. The amount of your pension, if you retire early with a reduced pension.

EXAMPLE

Sue is age 59, she has 26 years of service and her normal retirement age is 60. Sue qualifies for an immediate unreduced pension because her age plus service equals 85 (59 + 26 = 85).

If Sue’s normal retirement age were to change to 65, she would no longer qualify for an immediate unreduced pension – she does not have the 90 Factor or 30 years of service. (Note: She could still retire early if her normal retirement age changed to 65 because she is over age 55, but her pension would be reduced.) Sue would have to work another 2.5 years to qualify for a 90 Factor unreduced pension (61.5 + 28.5 = 90).

Note: The formula to calculate retirement and disability pensions, inflation protection and survivor benefits is the same for both normal retirement age 60 and 65 members – normal retirement age does not affect the pension formula, survivor benefits or inflation protection.

Normal Retirement Age and Commuted Value Transfers

Normal retirement age may affect your ability to transfer the commuted value of your pension.

If you leave your OMERS employer, the option to transfer the commuted value of your OMERS pension to a locked-in retirement account (LIRA) or registered pension plan (RPP) is available if your employment ends before the end of the month in which you turn:

  • 55, if your normal retirement age is 65
  • 50, if your normal retirement age is 60.

If your employment ends after this, you no longer have the option to transfer the commuted value of your OMERS pension to a LIRA; however, you may be able to transfer your pension to another RPP.