The Service Adjustment

If your normal retirement age changes from 65 to 60, OMERS reduces your past credited service by 25%, unless:

  • You are over age 60 – in this case, the reduction is 5% for each year you are less than age 65.
  • You are age 55 or older and have 30 years of service* or the 90 Factor (age plus service* equals 90) – in this case, you qualify for both an unreduced normal retirement age 65 pension and an unreduced normal retirement age 60 pension and there is no service adjustment or payment required.

*Includes credited plus eligible service.

EXAMPLES

The member The service adjustment
Age 55 and 20 years of credited service 25% reduction
Age 55 and 30 years of credited service None (because the member is eligible for an unreduced normal retirement age 65 pension)
Age 62 and 20 years of credited service 15% reduction (5% for each of the three years the member is less than age 65)