A Supplemental Plan coverage start date may be retroactive to an earlier period in the year or to a previous year. When this occurs:
- The employer must deduct retroactive contributions for each member who was an of the class of employees for which coverage is being provided. If the member is not currently part of the class, but was during some or all of the retroactive period, the applicable retroactive contributions must be deducted in a lump sum. Retroactive contributions must be remitted to OMERS immediately.
- The retroactive contributions must be based on the contributory earnings and Supplemental Plan contribution rate that was in effect for each year in the retroactive period.
- When there is retroactive coverage and the benefit is the 2.33% accrual rate, OMERS will calculate a past service pension adjustment (PSPA) for the retroactive period and report it to the Canada Revenue Agency (CRA). The CRA will subtract the PSPA from each member's RRSP room and notify the member if there isn't enough RRSP room. In this case, the member would contact OMERS to discuss their options. If there isn't enough room and the member does not free up RRSP room, the coverage start date for that member would change.
Note: PSPA reporting only applies to the 2.33% accrual rate benefit; it does not apply to other Supplemental Plan benefits.
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.