How did OMERS come up with the idea for the AVC option?
The idea for the AVC option grew from member requests. Members asked if they could invest their personal retirement savings in the OMERS Fund. In response, OMERS delivered AVCs.
Is my AVC account affected by the OMERS Plan funding shortfall?
No, the funding shortfall and AVCs are mutually independent. The funding shortfall is related to the defined benefit (DB) component of the OMERS Plan, not to AVCs.
Are AVCs part of OMERS funding strategy?
No, OMERS strategy to return the DB component of the OMERS Plan to a fully funded position is separate from AVCs.
OMERS funding strategy includes:
Learn more about OMERS funding
Do AVCs increase my OMERS pension?
No, AVCs do not increase your OMERS pension. Your OMERS pension is a defined benefit pension based on your earnings and service in the OMERS Plan.
Does OMERS make money from AVCs?
No, AVCs are offered on a cost-recovery basis.
How are AVC fees determined?
AVC fees and expenses are based on a cost-recovery model, and could go up or down. To learn more, visit Fees & Expenses.
What am I investing in with an AVC account?
You’re investing in the OMERS Fund. Its globally diverse asset mix includes public and private market investments, such as Bruce Power, Golf Town, Metro Toronto Convention Centre and more.
Do I select my asset mix with an AVC account?
No, AVCs are invested in the OMERS Fund, so you do not need to select an asset mix.
Can retired members contribute to an AVC account?
Yes, AVCs are a retirement savings option for retired members to age 70.
Retired members can transfer funds from a registered retirement vehicle such as an RRSP or LIRA to an AVC account.
Are automatic contributions to an AVC account tax-deductible?
Yes, automatic contributions to your AVC account are treated like contributions to an RRSP and are tax-deductible in the year they’re made.
Note: Automatic contributions made before the end of February cannot be applied towards the previous year like regular RRSP contributions.
Can I can keep my AVC account if I leave my OMERS employer?
Yes, you can keep your AVC account provided you keep your defined benefit (DB) pension with OMERS. You can continue to transfer funds from a registered retirement vehicle such as an RRSP or LIRA to your AVC account during the annual transfer window.
Note: If you transfer your DB pension out of the OMERS Plan, you must withdraw your entire AVC account balance.
Can I use funds in my AVC account to buy back service?
Yes, you can use funds in your AVC account to buy back service in the OMERS Plan anytime during the year. There are no window restrictions in this case.
Can I transfer my spouse’s RRSP into an AVC account?
No, only RRSPs registered in your name (the OMERS member) can be transferred to an AVC account, even if you contributed to the RRSP in question.
Will my spouse receive funds in my AVC account if I die?
Yes, in the event of your death, your eligible spouse is entitled to a refund of the full balance of your AVC account.
Note: The 66 2/3% survivor benefit rule relates to the DB pension for your eligible spouse.
Where can I find out if I make automatic contributions to an AVC account by payroll deduction?
Visit myOMERS and click Start or Modify Contributions and you will see the payroll deduction option in Step 2 if your employer has elected to offer the AVC payroll deduction option or you can contact OMERS Client Services or your HR or payroll department.