How Your Pension Grows

The more years you have in the OMERS Plan, the larger your pension in the OMERS Plan. OMERS defined benefit formula takes into account your best five consecutive years of earnings (“ “best five” earnings” earnings) and service in the OMERS Plan.

OMERS Plan pension formula

Your OMERS Plan lifetime pension + bridge benefit to age 65 equals
2% x credited service (years) x “best five” earnings
Less OMERS Plan bridge benefit at age 65
0.675% x credited service (years) x lesser of “best five” earnings or AYMPE
Equals your OMERS Plan lifetime pension from age 65

The bridge benefit supplements your OMERS Plan lifetime pension until age 65, when it is expected your Canada Pension Plan (CPP) pension will begin. The bridge benefit continues to be paid to age 65 even if you start your CPP pension before age 65.

An OMERS pension earned in excess of the maximum set by the Income Tax Act is paid through the OMERS retirement compensation arrangement (RCA) – a special fund for this purpose.