Belleville councillors enrolled in OMERS pension plan

Belleville councillors now contributes a percentage of their salary – typically 9% up to the Year’s Maximum Pensionable Earnings (YMPE) – per pay period, and the City matches this amount 100%.

Since the Councillor salary ($40,196) is below the 2024 YMPE threshold ($68,500), the entire salary is taxed at this 9% rate.

THAT eligible Council members in office on the effective date of this bylaw are entitled to be enrolled in the Ontario Municipal Employment
Retirement System (OMERS). Following the approval of this bylaw eligible Council members starting employment shall be enrolled in the Ontario Municipal Employment Retirement System (OMERS). Council Members who are deemed ineligible, will receive a payment in lieu of the City’s OMERS contributions for eligible Council Members.

Under current Ontario pension laws, pension benefits are “vested” immediately. This means that after serving 4 years, the councillor owns the pension benefit – including the City’s matching contributions.

When a councillor leaves office (assuming they are not yet of retirement age, e.g., under 55), they generally have three options for their pension:

• Deferred Pension (Keep it in OMERS) Leave the money in the plan. When you reach retirement age (usually 65, or as early as 55 with a reduction), you will begin receiving a monthly pension check for life.
  • Rough Estimate: For a councillor earning ~$40,000, a 4-year term might generate a pension of roughly $3,200 per year ($266/month) payable at age 65 (calculation: 2% × 4 years × $40,000). Note: This amount can vary if the position is classified as non-full-time.
• Transfer the Commuted Value (CV) Transfer the total lump-sum value of the pension (contributions + city contributions + investment returns) into a locked-in retirement account (LIRA). Manage the investment yourself, but you cannot cash it out freely until retirement.
• Cash Refund (Small Pensions Only) If the calculated annual pension is “small” (defined as less than 4% of the Year’s Maximum Pensionable Earnings, roughly under $2,850/year in 2025), OMERS may allow or require you to take the value as a taxable cash lump sum or transfer it to a regular RRSP. A Councillor earning ~$40,196 might be right on the borderline of this threshold. If their pension is calculated slightly below the limit, they could cash it out. If above, they must choose Option A or B.