The rules for withdrawing or transferring funds from your AVC account vary based on whether you are a working member, deferred member or retired member and whether your funds are locked-in or non-locked-in.
You can only withdraw funds during the annual Withdrawal Window between March 1 and April 30 either through myOMERS or by completing the Withdrawing Non-Locked-in Funds From Your AVC Account (active members) form:
Minimum of $500
Maximum of 20% of your prior year-end AVC account balance
While you’re a working OMERS member, you cannot make a full withdrawal from your AVC account, except:
After four consecutive years of partial withdrawals, you can withdraw your entire account balance in the fifth year (excluding any current year contributions)
In the year you turn 71, you can withdraw your full account balance
You can use your AVC account balance towards purchasing a leave or buying past service in the Plan at any time of the year.
Your pension election will determine the withdrawal options available for your AVC account:
Option 1:
You may withdraw or transfer the full balance of your AVC account within the first six months upon leaving employment with your OMERS employer. After that period, withdrawals can only be made during the annual Withdrawal Window between March 1 and April 30. Partial withdrawals exclude current year contributions and are subject to a minimum of $500.
Option 2:
You must withdraw or transfer the full balance of your AVC account.
This is because an AVC account must be accompanied by a benefit that remains under the defined benefit provision of the Plan.
You can withdraw funds from your AVC account either through myOMERS or by completing the AVC Benefit Options form that will be mailed to you.
Your withdrawal options depend on whether the funds are locked-in or non-locked-in. Withdrawals are subject to a minimum of $500.
Cash withdrawals from your AVC account are considered taxable income.
Locked-in funds | Non-locked-in funds | |
|---|---|---|
Before age 71 | — Transfer to a locked-in arrangement such as a Locked-In Retirement Account (LIRA) or Registered Pension Plan (RPP) | — Cash withdrawal or transfer to registered accounts such as an RRSP, Registered Retirement Income Fund (RRIF) or RPP |
Age 71 | — Transfer to a locked-in arrangement (e.g., LIRA, RPP) — Full balance must be withdrawn by October 31 of the year you turn 71 | — Cash withdrawal or transfer to registered accounts such as an RRSP, RRIF, RPP — Funds can remain in your AVC account past the year you turn 71 through the AVC Income Option |
After age 71 | — Not applicable (by this age locked-in funds must be transferred out) | — Cash withdrawal (only through AVC Income Option) |
Contributions and transfers-in to your AVC accounts are not permitted after age 70. With the AVC Income Option, you can keep non-locked-in funds with OMERS past age 71 and your participation in OMERS AVCs will continue.
If you do not want to participate in the AVC Income Option, you have between March 1 and April 30 of the year you turn 71 to withdraw all your funds.
Locked-in funds are not permitted under the AVC Income Option. If you have locked-in funds in your AVC account, OMERS will reach out to you with your options at the beginning of the year that you turn age 71.
Once you are in the AVC Income Option, you must withdraw a minimum amount based on your age and AVC account balance, each year starting with the year you turn 72, as required under the Income Tax Act. See Minimum withdrawal amount by age below.
Funds must be withdrawn as cash and are subject to withholding tax. Transfers to another savings arrangement are not available after 71.
Minimum withdrawal amount
Each year after you turn 71, you must withdraw a minimum amount from your AVC account, as required by the Income Tax Act. The minimum percentage is applied to the balance of your AVC account at the start of the year, starting around 5% at age 72 and peaking at 20% at age 95 and beyond.
Your AVC minimum withdrawal amount for the year is calculated and shown on your annual AVC Statement, which is sent to you around March 1 each year.
Your age on January 1 | Minimum withdrawal % | Your age on January 1 | Minimum withdrawal % |
|---|---|---|---|
71 | 5.28% | 84 | 8.08% |
72 | 5.40% | 85 | 8.51% |
73 | 5.53% | 86 | 8.99% |
74 | 5.67% | 87 | 9.55% |
75 | 5.82% | 88 | 10.21% |
76 | 5.98% | 89 | 10.99% |
77 | 6.17% | 90 | 11.92% |
78 | 6.36% | 91 | 13.06% |
79 | 6.58% | 92 | 14.49% |
80 | 6.82% | 93 | 16.34% |
81 | 7.08% | 94 | 18.79% |
82 | 7.38% | 95 or older | 20.00% |
83 | 7.71% |
You can withdraw funds from your AVC account during the Withdrawal Window and set up direct deposit either through myOMERS or by completing the AVC Income Option Withdrawal (members age 72 and older) form:
After your death, any remaining AVC account balance will be paid to:
Your legal spouse or common-law spouse on the date of your death (provided you were not living separate and apart); or
Your designated beneficiaries (same as those you designated for your OMERS pension), if you do not have a spouse; or
Your estate, if you do not have a spouse or designated beneficiary.
There are specific rules around the eligibility of a spouse (and the definition of a spouse) to receive the payment of an AVC account balance. These are similar to (but not the exact same as) the rules that apply to survivor benefits payable as part of the defined benefit pension under the Plan. For more information, visit the survivor benefits page and the Terms of Participation.
Designate or update your beneficiaries through your myOMERS account.
Explore the different options for contributing funds to your AVC account.
If you return from a leave, you may be able to purchase that leave to add to your OMERS credited service.
Explore more OMERS benefits and plan for your loved ones.