Supplemental Plans - Information Overview

What members are eligible for Supplemental Plan benefits?

Members of the police sector, firefighters and paramedics are eligible for some or all of the benefits.

What benefits will be available?

As of July 1, 2008, four supplemental benefits are available:

  • 2.33% accrual rate
  • “Best four” earnings
  • “Best three” earnings
  • Enhanced early retirement factors (80/85 Factor)

These benefits top up the benefits available in the Primary Plan.

How many benefits can be provided?

One benefit can be provided by the employer at a time. Once a supplemental benefit is set up, no further supplemental benefits can be provided for the covered class of employees for at least 36 months.

What are the current contribution rates?

Contribution Rates for Supplemental Plan Benefits
Effective January 1, 2011

Benefit Members with a normal retirement age of 60 Members with a normal retirement age of 65
Supplemental Plan contribution rate Primary Plan rebound rate* Supplemental Plan contribution rate Primary Plan rebound rate*
2.33% accrual 2.15% 0.20% 1.85% 0.25%
80/85 Factor 0.45% none 0.30% none
“Best three” earnings 0.60% none 0.50% none
“Best four” earnings 0.35% none 0.30% none

*Only required if the member has the 2.33% Supplemental Plan benefit.

What factors affect contribution rates?

The current contribution rates for the Supplemental Plan are based on an assumption of 5,000 members. The long-term viability of the plan requires membership to match or exceed assumptions.

Contribution rates are set by the OMERS Sponsors Corporation and may change.

Rates include administrative costs as well as rebound costs to ensure that all administration and operating costs of the Supplemental Plan are paid entirely by members of that plan and are not subsidized in any way by the Primary Plan.

Will a member in the Supplemental Plan continue to earn a pension in the Primary Plan?

Yes. A member of the Supplemental Plan will continue to earn an OMERS pension in the Primary Plan.

How do Supplemental Plan benefits work with the Primary Plan?

Supplemental benefits will “top up” the pension that a member already earns in the Primary Plan. For the period during which the member participates in the Supplemental Plan, the supplemental top-up pension equals the difference between the primary and supplemental pensions. For example, all members earn a pension based on a 2% formula in the Primary Plan. A member with the 2.33% supplemental benefit may earn an additional 0.33% pension for the period of time the member participates in the Supplemental Plan.

Are supplemental benefits available to other members (non-police, non-fire, non-paramedic)?

The benefits will not be available to other OMERS members. The OMERS Act, 2006 requires that a Supplemental Plan is developed to offer optional benefits to members in the police sector, firefighters and paramedics. Providing supplemental benefits to other members would require approval by the Sponsors Corporation, and agreement by employers.

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.