In response to requests from members, we've introduced an option to keep non-locked-in funds in your AVC account beyond the year in which you turn age 71. We call this new part of the AVC program the "AVC Income Option."
The AVC Income Option brings three important changes to AVCs:
- You are no longer required to transfer non-locked-in funds out of your AVC account by the end of the year in which you turn age 71. Any non-locked-in funds that you have in your AVC account on December 31st of the year you turn age 71 will remain in your AVC account, and your participation in OMERS AVCs will continue.
- You must withdraw a minimum amount each year starting with the year you turn age 72. This withdrawal, which we call the "income amount," is required under the Income Tax Act and must be paid in cash.
- Optional withdrawals during the withdrawal window must be made in cash after the year you turn age 71. Fund transfers to another savings arrangement are no longer available.
Aside from these changes, the same features of OMERS AVCs continue to apply, such as the application of the OMERS Fund rate of return and the ability to make optional withdrawals during the withdrawal window.