AVC Employer Fact Sheet

A: No.

A: No, employers have the option to provide this to their employees who are OMERS members at their own discretion.

A: No, it does not have to be the first of a month; this is something for you to consider. As you will see further in the FAQs, you will receive an AVC Employer Payroll Deduction Report from OMERS on the fifth of each month. AVC payroll deductions are to be performed in the month of your effective date.

A: Read the AVC Employer Payroll Deduction Roles and Responsibilities document and sign an AVC Employer Payroll Deductions Election Form.

A: OMERS will review your election form and set you up on our system to commence the payroll deduction option from the effective date you selected. A member will not be able to make automatic contributions through the AVC Payroll Deduction Option before this effective date. Before the effective date, you may wish to inform your eligible employees that you have decided to provide 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.

A: Some things you may want to consider:

•  Being comfortable with your new roles and responsibilities, as set out in the AVC Employer Payroll Deduction Roles and Responsibilities document.

•  Whether your payroll or payroll provider is prepared to perform monthly setups/modifications and deletions?

•  Whether your payroll or payroll provider is prepared to perform Electronic Fund Transfers (EFT) or National Direct Deposit Service (NDDS) payments to OMERS?

• Deciding on an effective date (month) for the payroll deductions to start.

A: Employees would need to know:

• That you have elected to provide this option to them (and they should contact OMERS for more information on AVCs).

• The month the payroll option takes effect (effective date).

• When in the month you will be performing the AVC payroll deduction from their pay, if they were to register.

• Should they anticipate there may be delays (i.e. taking affect the following month) in processing contribution changes (e.g. starting, modifying or stopping contributions).

A: You may wish to choose an effective date that provides you with sufficient lead time to allow for implementation of your systems, etc., and to inform your employees of the option.

A: No. All changes must be done through myOMERS.com or by paper form directly with OMERS. If the member has questions about this process, ask them to contact OMERS Member Experience.

A: No, it can only be done from one or the other; not both at the same time. This will be part of the validation performed by OMERS when a member signs up or changes his or her automatic contributions.

A: This is done through OMERS. Starting on the effective date (or another mutually agreed upon date prior to the effective date), you have selected, a member can sign up for AVCs and/or modify their deduction amount through myOMERS.com or by using a paper form.

A: We encourage you to inform your eligible employees that you have elected to provide this option, including the effective date of payroll deductions and anticipated delay in contribution changes (e.g. may not happen until following month).

Also, as of your effective date (or another mutually agreed upon date prior to effective date), a member who logs into the myOMERS secure website will be provided with the AVC Payroll Deduction Option as an option for automatic contributions.

A: There is no impact on employer administration of automatic contributions. Effective January 1, 2022, an AVC transfer-in window is introduced, however, AVC automatic contribution option remains permitted throughout the calendar year.

A: No, catch-up payments are not available through payroll deduction. Eligible employees must contact OMERS Member Experience to see if they can make a catch-up payment, the eligible amount (if any) and for payment instructions.

A: No. The AVC payroll deductions should be reported separately. OMERS will use the AVC Employer Payroll Deduction Confirmation Report you submit to reconcile your corresponding EFT or NDDS amount. One reason for this separation is that the remittance deadlines differ, as do the accounts to which the payments are made.

A: No. A new EFT or NDDS account must be set up, as the AVC payroll deductions are remitted to a different account.

A: Yes, but keep in mind the month of December poses a risk. OMERS must receive the remittance before the third-last business day of the year. Since AVCs must be deposited during the calendar year they are received, waiting until the end of the month increases the risk of missing this deadline.

A: No. While the AVC payroll deductions will be added to the T4 reporting, the 119 year-end reconciliation is specific to the defined benefit provision of the Plan. Please exclude the AVC payroll deduction from both member contributions sent in under the Form 105 and PA reporting.

A: OMERS will ask you to complete an AVC Employer Payroll Deduction Option Contact Form listing a number of employer contacts. An encrypted email containing the AVC Employer Payroll Deduction Report will be sent to all contacts to help address instances when someone is away.

A: OMERS will provide a designated email box (penacc@omers.com). Please do not respond or use the email address OMERS used to send the encrypted file each month. Also, for privacy reasons, remove the member’s SIN from the report when responding.

A: You can only make one deduction per month. For example, if you have a weekly pay cycle, you cannot make deductions for the AVC payroll deduction option each pay period and remit the total deductions once a month to OMERS.

A: Employers will have to establish and communicate their own practice for the AVC payroll deduction. This is something your employees will need to know from you.

A: You will be responsible for communicating any potential contribution change delays to your employees directly (e.g. changes may not be applied until the following months pay cycle).

A: You can only deduct the full amount indicated on the AVC Employer Payroll Deduction Report. If the member has no pay or not enough pay that period, do not apply a deduction at all ($0). You will need to report this in the “notes” section of the AVC Employer Payroll Deduction Confirmation Report, as an adjustment, to OMERS.

A: You must send this report to OMERS each month to confirm that you have made deductions set out in the corresponding AVC Employer Payroll Deduction Report that OMERS will provide to you on the fifth of the month.

A: Each month, OMERS will provide an employer who has elected to provide the AVC Payroll Deduction Option with this report. The AVC Employer Payroll Deduction Report contains a list of all of your eligible employees who make automatic contributions through the AVC Payroll Deduction Option.

A:
EFT
Send an email to OMERS Pension Accounting Department (penacc@omers.com) requesting AVC payroll deduction EFT set-up instructions.

NDDS
Complete and forward an AVC Employer Payroll Deduction Direct Deposit (NDDS) Registration Form to OMERS – located in the Employer/Forms section of the OMERS website.

A: As we require the monies within three business days of the deduction, employers must remit by either EFT or NDDS. Cheques will not be accepted.

A: The report can be sent to OMERS anytime once your payroll has been closed/finalized, but it must be sent within three business days of the corresponding AVC payroll deductions.

A: The report is sent monthly. It will be sent via encrypted email before 6:00 a.m. on the fifth calendar day of each month – even if the fifth falls on a weekend or holiday.

A: OMERS will be responsible for this.

A: The AVC program operates on a calendar year deposit schedule, and we must have the funds in time to allocate them before year-end. This ensures that the member’s record, as reported by OMERS and as reported by you, are the same (particularly for tax filing purposes).

A: In the event of over-contribution by the member, you will have to report an amended PA to Canada Revenue Agency. OMERS will notify you of any over-contributions after you complete your e-Form 119 (we anticipate this will be a very uncommon occurrence)

A: Yes. Please refer to the AVC Employer Payroll Deduction Roles and Responsibilities document for more information.