The first five scenarios show how the rate of return is applied in the normal course, which is:
- The rate of return for the OMERS Plan is established on or around March 1st each year – this is the rate determination date for AVC purposes.
- After the rate determination date, the annual rate of return, less investment management expenses and the annual AVC administration fee, are applied to a member’s AVC account.
- The rate of return is applied on a pro-rated basis to any amounts that are held in a member’s AVC account for part of the year.
The last two scenarios show differences in how the rate of return is applied when a member elects to withdraw his or her entire AVC account balance (e.g., on termination of employment or retirement). Specifically, these scenarios show differences in how the rate of return is applied depending on whether the member’s AVC withdrawal forms are received by OMERS before or after the rate determination date.
For more details, and for the definitions of the “annual rate of return,” the “five year average rate of return” and “rate determination date,” please see the Terms of Participation.
Scenario 1: No contributions or withdrawals
Scenario 2: Lump-sum transfer
Scenario 3: Partial withdrawal
Scenario 4: Year member opens an AVC account
Scenario 5: Negative rate of return
Scenario 6: Full withdrawal (documents received after the rate determination date)
Scenario 7: Full withdrawal (documents received before the rate determination date)
Note: All figures are for illustrative purposes only and do not reflect past or future returns or expenses. Results are rounded to the nearest dollar for illustrative purposes.