Requesting a Cost Estimate

A cost estimate 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 five years after the agreement is expected to begin (member and employer contributions are listed separately). Future service is credited service earned on/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 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 and therefore can provide a more accurate estimate.
  • There are no fees for OMERS processing if an employer requests a cost estimate.
  • The turnaround time for costs estimates is likely faster because 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. If the association or union requests the estimate from the employer, there is no cost as processing is done by the employer – OMERS staff are not involved in processing the cost estimate.

Method 1: Employer Processes the Cost Estimate

Employer's Process:

  • Employer uploads class details and updated contributory earnings information and submits the request.
  • Processing normally takes about 1 to 3 days; however, the method the employer uses to process the request, the size of group and volume being processed on the system at one time will impact the timing.
  • Two reports are produced – one for the employer and one for the association or union:
    • The employer's version shows member identification for past service costs and contributory earnings used in future service contribution calculations.
    • The association or union version shows the same cost information but it does not provide members' identification and earnings information.
  • The employer provides a hardcopy of the report to the association or union.
  • OMERS will send an e-mail notification to the association or union when a cost estimate is submitted by an employer – this alerts the association or union to obtain the cost estimate report from the employer.

Method 2: Association or Union Requests Cost Estimate Directly from OMERS

  • For this method, it's not as easy to identify the member class or classes to include in the estimate – OMERS will do this through the member affiliation data that OMERS has on its records.
  • The costing will be less accurate for several reasons:
    • Contributory earnings could be two years out of date depending on whether data has been received for the previous year – OMERS will use projected earnings.
    • The association or union must provide one annual salary rate for all new hires.
  • Procedure:
    • The association or union completes Form 301 – Request for a Supplemental Plan cost estimate  and mails the form with a cheque for $500 to OMERS (form will be available July 2008).
    • Processing normally takes one to three business days depending on volumes.
    • OMERS staff will send the association or union version of the cost estimate to the association or union.
    • OMERS will send an e-mail to the employer advising that the cost estimate was produced for the association or union.

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.

  • Form 301 - Request for a Supplemental Plan cost estimate. (813.0 KB)

    For Police, Fire or Paramedic Union or Association use only.