A cost estimate provided by OMERS to an employer – via e-access – details the estimated future and past service costs as follows:
- Future service costs - the estimated cost of Supplemental Plan contributions for future service by year, projected for each of the three years after the agreement is expected to begin (member and employer contributions are listed separately). Future service is credited service earned on and after the expected Supplemental Plan agreement effective date.
- Past service costs - the estimated member cost to purchase each member’s eligible past service as of the agreement effective date. Supplemental Plan past service is credited service that a member has earned in the Primary Plan as of the expected Supplemental Plan agreement effective date (i.e., credited service earned before the expected Supplemental Plan agreement date).
For associations and unions, the most effective route to request a cost estimate is through the employer. This is because:
- The employer has more up-to-date salary information.
- There are no fees for OMERS processing.
- The turnaround time for cost estimates is likely faster as there is less manual data entry.
Associations and unions can also request a cost estimate directly from OMERS but the estimate will be less accurate and a $500 processing fee will be charged.
Steps to set up a Supplemental Plan benefit
Employers and member associations who are interested in the Supplemental Plan should first review the plan information online.
Interested groups and employers can also ask OMERS to host a Supplemental Plan meeting (a fee applies). Hosting this information session will ensure that interested parties have an opportunity to ask questions and are fully aware of the Supplemental Plan provisions, cost considerations, and the steps required to offer the benefits and to enrol members.
OMERS can provide a cost estimate of Supplemental Plan future and past service costs on request – details are available online.
An employer proceeding to set up a Supplemental Plan benefit should:
- Review all information available online or through a Supplemental Plan meeting.
- Obtain a cost estimate (see information above) via e-access using the e-Form 301.
- Notify OMERS of their intent to adopt a bylaw or resolution and the timelines for implementation.
- Adopt a bylaw or resolution authorizing coverage.
- Enter into a Coverage Agreement with OMERS to set up coverage.
- Use the e-Form 300 – via e-access – to set up coverage for a class or classes of employees.
- Remit contributions as appropriate, including any retroactive contributions.
Subsequent to Supplemental Plan enrolment, OMERS will provide individual members the option and cost to purchase past service, where relevant.