A gap in your OMERS record does not always have to remain a gap. Certain periods from earlier employment, pension-plan participation or an unpurchased leave can be converted into credited service through an OMERS buyback. An OMERS buyback lets an eligible working member pay to add qualifying past service to their pension record. Purchased service can increase the pension earned under the OMERS formula and may help with early-retirement eligibility. The price is individually calculated, so buying one year of service does not have a standard fixed cost.
What Past Service Can You Buy Back?
The 2026 OMERS buyback rules allow several types of past service to qualify. These can include periods when you worked for an OMERS employer but were not enrolled in the plan, certain unpurchased leaves, and service connected with previous participation in a Canadian registered pension plan.
Past service with a non-OMERS employer can also qualify when it relates to a defined benefit (DB) or defined contribution (DC) registered pension plan. For a previous DB pension, a buyback can be possible when the benefit has already been moved out of that plan, such as into a Locked-In Retirement Account (LIRA). A pension that remains in the former DB plan may instead be eligible for a transfer.
Other examples include a shortfall created when a previous pension was transferred into OMERS, or certain pension service that was previously cashed out or transferred. However, service connected only with a group RRSP or deferred profit sharing plan does not qualify. OMERS past-service eligibility rules
The effect of a successful purchase is important because credited service enters the OMERS pension calculation. Adding credited service can therefore increase the pension produced by that formula.
Who Can Make an OMERS Buyback?
Under the 2026 OMERS rules, you generally need to be a working member to purchase past service. That means you are currently employed by an OMERS employer and contributing to the plan, or you are on a disability contribution waiver. Retired members, deferred members and people receiving an OMERS survivor pension cannot start a regular past-service purchase.
There is another restriction for someone who previously transferred their OMERS commuted value out and later rejoined the plan. They must wait five years from the date of the commuted value transfer before buying back the service associated with that transfer. The circumstances in which a member can take a commuted value are covered separately in cashing out or transferring an OMERS pension.
How Much Does an OMERS Buyback Cost?
There is no single price per month or year of service. The cost reflects the actuarial value of the additional future pension and depends on factors including your age, contributory earnings and when the past service occurred.
That also means waiting can make a purchase more expensive. Your earnings may rise, you may be closer to retirement, and the actuarial value of the added benefit can change. A quote obtained now should not be treated as a permanent price.
Once OMERS establishes your cost, the 2026 buyback costing is valid for three months. If it expires, a new calculation is required. You cannot reject one costing, request another later and then return to the earlier price if the replacement is higher.
We think this is the number worth comparing with the actual pension improvement rather than asking whether a year of service is inherently “worth buying.” Two members buying the same length of past service can face different costs and receive different retirement effects.
How You Pay for an OMERS Buyback
After confirming that the service qualifies, you can purchase some, all or none of it. Under the 2026 payment rules, OMERS allows a lump sum, a monthly payment plan or a combination of the two.
Monthly plans are available over 12, 24, 36, 48 or 60 months and are paid by pre-authorized debit. Interest applies, and credited service is added as the monthly payments are received. Lump sums can instead be funded with cash or transferred money from an RRSP, LIRA, OMERS Additional Voluntary Contributions account or another registered pension plan, subject to the applicable tax rules. OMERS buyback payment options
Using an RRSP for the purchase is different from making a new cash contribution. Funds transferred from an RRSP, LIRA, AVC account or another registered pension plan are already tax-sheltered, so the transferred amount cannot be claimed again as a deduction. A qualifying cash payment may be deductible, with the treatment depending on when the service occurred.
A purchase can also affect RRSP room through pension tax rules. In some cases, a Past Service Pension Adjustment (PSPA) must be certified before the transaction can be completed. The applicable treatment depends on the service and payment method, so the tax information included with the individual costing matters more than assuming every buyback receives the same deduction.
A Buyback Is Different From Transferring a Previous Pension
Someone arriving at OMERS from another DB pension plan should not assume a buyback is automatically the correct route. A direct pension transfer may be available when you still hold a benefit in the former plan, have not started receiving that pension and the other plan agrees to the transfer. OMERS previous-pension transfer rules
Transfer applications can have much shorter timelines. Under the 2026 OMERS rules, the process generally must begin within six months of enrolling, although the applicable transfer agreement can set a different deadline.
A transfer can also produce a shortfall when the amount coming from the previous plan is insufficient to establish the same amount of service in OMERS. The member can then be offered the opportunity to purchase some or all of that difference.
So a previous pension should be checked for transfer eligibility before assuming it needs to be bought back. The two routes can lead to additional OMERS service, but they are not interchangeable processes.
What Happens After You Buy the Service?
A completed buyback is irreversible, and the money used for the purchase becomes locked in. The added credited service becomes part of the record used to determine your OMERS benefit rather than remaining a separate account that you can later withdraw independently.
If you leave your OMERS employer while a purchase is still underway, the 2026 OMERS rules give you 30 days to complete it. Someone who later leaves the plan may ultimately keep the resulting benefit as an OMERS deferred pension or deal with it under the termination options available at that time.
Before committing a large amount, the useful comparison is the cost against the projected change in your pension and retirement date. The OMERS Retirement Planner and buyback process can show how purchasing the service affects your individual pension. That gives you something concrete to evaluate instead of judging the offer only by how many additional years appear on your record.
Other Questions About OMERS Buybacks
Can you buy back only part of the service offered?
You can. Under the 2026 OMERS rules, once the service and cost have been confirmed, you may purchase all, part or none of the eligible period.
Does every unpurchased period need to be bought to help with early retirement?
Not necessarily. Some unpurchased service with an OMERS employer can already count as eligible service for determining an unreduced early-retirement date even when it has not been converted into credited service. Other periods are recognized only if purchased.
Can you borrow money to pay for an OMERS buyback?
You can finance the cost independently, but under the 2026 tax treatment described by OMERS, interest on money borrowed from a financial institution to purchase the service is not tax-deductible.
Will purchased service receive OMERS inflation protection in retirement?
Once the purchased service forms part of your OMERS pension, the resulting pension is subject to the plan provisions that apply to that service. Inflation adjustments after retirement are governed separately by the OMERS pension indexing rules.
