Available Benefits

Effective July 1, 2008, four Supplemental Plan benefits are available.

  Primary Plan
(benefits provided to all OMERS members)  
Supplemental Plan benefit
(pays the difference between the Supplemental Plan and the Primary Plan benefits)  
Accrual Rate  2.0%   2.33%  
Earnings Used in the Pension Formula   “Best Five”   “Best Three”  
Earnings Used in the Pension Formula   “Best Five”   “Best Four”  
Early Retirement Factor (available to members within 10 years of normal retirement age)
  • for members with a normal retirement age of 60
 
85 Factor*   80 Factor  
  • for members with a normal retirement age of 65
 
90 Factor*   85 Factor  

*OMERS Primary Plan also includes a 30-year provision for early retirement. Members can retire with an unreduced pension when their service (credited plus eligible service) equals 30 years, provided they are within 10 years of their normal retirement age.

Definition of Terms

Accrual Rate

The accrual rate is the percentage used in the pension formula.

Earnings Used in the Pension Formula

“Best five" earnings is the annual average of a member's highest 60 consecutive months – best five years – of contributory earnings. “Best three” earnings is the annual average of a member's highest 36 consecutive months of contributory earnings. “Best four” earnings is the annual average of a member's highest 48 consecutive months of contributory earnings.

Note: Contributory earnings do not include any overtime pay or non-recurring payments.

Early Retirement Factor

The Factor is the member's age plus service (credited service plus eligible service):

For example, if a member has 30 years of service and is 55 years old, the member's Factor is 30 + 55 = 85 Factor.

Supplemental Plan benefits are not automatically provided. Employers can set up Supplemental Plan coverage for a class or classes of members in the police sector, firefighters and paramedics.