AVC Employer Fact Sheet

Employers have the option to offer their employees who are OMERS members the ability to make automatic contributions to their Additional Voluntary Contributions (AVC) account through an AVC Payroll Deduction Option.

This arrangement is designed to be both easy to administer and communicate to your employees. We appreciate that you may have some questions related to setting up and delivering this optional deduction. We assure you that OMERS is here to support and assist you.

AVCs and the employer payroll deduction option

To provide members with another option by which they can make automatic contributions to their AVC account, we are partnering with employers to provide a payroll deduction and remittance service. The contribution is deducted by the employer from the member’s pay once a month, and then remitted to OMERS within three business days. We believe it provides a number of benefits to both you, as the employer, and to your employees.

Features and benefits for employers:
  • Demonstrates your positive support for your employee’s retirement savings and planning.
  • Adds to your total compensation platform without a direct contribution cost (i.e. no employer contributions).
  • Makes use of your payroll abilities for added value.
Fatures and benefits for employees:
  • An alternative automatic contribution method for the AVC program.
  • AVC payroll deductions are made pre-tax, which can make it more affordable for employees.
  • AVC payroll deductions can be captured and viewed along with other payroll-related items on their pay statement.
  • Ongoing and predictable retirement savings.
OMERS responsibilities for administering the AVC Payroll Deduction Option:
  • OMERS will provide communication material to you that will assist in promoting awareness of the AVC Payroll Deduction Option that can be printed for distribution and/or used for internal posting on intranet pages and electronic bulletin boards.
  • OMERS will act as the direct contact with your employees to register, modify or stop making AVC payroll deductions.
  • On the fifth calendar day of each month, OMERS will send an AVC Employer Payroll Deduction Report, via encrypted email, to you with deduction setups (new), changes or deletions for the registered members.
  • If required, OMERS will contact the employer with details to amend an individual member’s T4 (we anticipate this will be very uncommon).
Employer responsibilities for administering the AVC Payroll Deduction Option:
  • Read AVC Employer Payroll Deduction Roles and Responsibilities and sign an AVC Employer Payroll Deductions Election Form.
  • You will need to choose the effective date the payroll option will start.
  • You will need to set the timing of your monthly AVC payroll deduction (e.g., the pay period that falls within the second or third week of each month) within your payroll cycle, and communicate this timing to your employees.
  • You will program/set up the automatic payroll deductions within your existing payroll system to implement the monthly deduction (and changes).
  • You will remit the deductions and an AVC Employer Payroll Deduction Confirmation Report to OMERS within three business days of the deductions being made.
  • Annually, you will report associated AVC payroll deductions and the pension adjustment (PA) on each employee’s T4 (as part of a defined benefit registered pension plan contribution) – see example in Frequently Asked Questions (FAQs) section.

Frequently Asked Questions

Employer Setup:

Member Setup:

Employer Administration:

Termination:

Download for Print

  • AVC Employer Fact Sheet (66.0 KB)

    Download the AVC Employer Fact Sheet in PDF format to print out.