Is the AVC Option Right for You?

Tools to Help You Decide

At OMERS, we believe AVCs offer an attractive option to build additional retirement savings. However, what we believe is not as important as what you decide is best for you. The AVC option is voluntary and may not be right for everyone's retirement savings plans or life stage. The material on this website is aimed at providing you with information to make an informed decision about contributing to an AVC account.

The Retirement Income Estimator is available on the myOMERS secure member access site to help you decide if the AVC option is right for your situation. If you haven't already done so, register for myOMERS. Registering is quick and easy.

Even if the AVC option is not right for your plans, registering for myOMERS will still give you the benefit of secure online access to your OMERS service, earnings and pension information.

Comparing AVCs to RRSP Investments - Some Similarities, Differences

Features  AVCs  RRSP Investments 
Eligibility   Exclusive to OMERS members  Widely available 
Tax-deductible contribution in the year it is made   Yes   Yes  
Contributory limit   Yes    Yes
Tax-deferred   Yes   Yes  
Transfers from other retirement savings accounts (e.g., RRSP)   Yes
Must be done during the January 1 to April 30 window.  		 Yes 
Withdrawals while contributing to an OMERS pension   Limited to a maximum of 20% per year, subject to a minimum $500. Must be done during the March/April withdrawal window.   No limit.  
The option to fully withdraw or transfer funds at retirement or if you leave your OMERS employer   Yes   Yes  
Fees and expenses On a cost-recovery basis. The investment management component is a percentage calculated annually (the most recent is about 0.6%*) and deducted from the rate of return; the administration component is an annual fee – for 2012 it's $23. Fees will vary
Special withdrawal programs (e.g., Home Buyers' Plan, or the Lifelong Learning Plan) Unavailable Available

*This percentage is calculated each year on a cost-recovery basis in proportion to the investment management expenses for the OMERS Fund. The percentage for the past 5 years has ranged from 0.4% to just over 0.6%. 

Tip!

OMERS provides information sessions to help you understand your pension and maximize your retirement savings

Did You Know?

Details concerning AVCs are found in the Terms of Participation attached to the guide, Consider the AVC Option  
[958 KB]

Virtual Tour