2.33% Accrual Rate – formula

The “2.33%” Supplemental Plan benefit is a top-up pension – it pays the difference between the Supplemental Plan rate (2.33%) and the Primary Plan rate (2%) for the period of supplemental service.

The “2.33%” Supplemental Plan benefit is calculated as follows:

2.33% x Supplemental Plan credited service* 
number of years (maximum 35 years)
x “best five” earnings
Less
2.0% x Supplemental Plan credited service* 
number of years (maximum 35 years)
x “best five” earnings

Equals the “2.33%” Supplemental Plan lifetime pension

* We use the Supplemental Plan credited service in both lines of the formula because the top-up pension is based on the period of supplemental coverage. Any credited service in the Primary Plan outside the supplemental period would not be included in the top-up pension. For example, a member has 10 years of Primary Plan credited service and 5 years of Supplemental Plan credited service. To calculate the member's top-up pension, we would use 5 years of Supplemental Plan credited service in both lines of the above formula.

2.33% accrual rate – example calculation

In 2020, Jim retires early (at age 58) with an unreduced pension. He has 30 years of credited service, including two years of 2.33% Supplemental Plan coverage. Jim’s “best five” earnings are $70,000.

Jim’s “2.33%” Supplemental Plan pension

2.33% x 2.0 years x $70,000 = $3,262
Less
2.0% x 2.0 years x $70,000 = $2,800
Equals Jim's “2.33%” Supplemental Plan lifetime pension of $462 per year
2 years of Supplemental Plan credited service gives Jim a top-up of $462 on his future annual pension.

Primary Plan: Jim's lifetime pension plus bridge benefit to age 65* is $42,000 per year
Supplemental Plan: Jim's top-up pension is $462 per year 
Jim's total pension to age 65 is $42,462 per year
Primary Plan: Jim's lifetime pension from age 65** is $30,571 per year
Supplemental Plan: Jim's top-up pension is $462 per year
Jim's total pension from age 65 is $31,033 per year
*Jim's lifetime pension plus bridge benefit to age 65 under the Primary Plan is
2% x 30 years of credited service x $70,000
**This assumes a bridge benefit of $11,429 per year. More about how we calculate an OMERS pension 

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.