Additional Voluntary Contributions (AVCs)
OMERS members face a narrowing window in mid-2026 to transfer lump sums into low-fee AVC accounts invested in a fund that returned 8.3% in 2024, amid fresh annual limits and new integration options with enhanced leave purchases.
Key takeaways
- •The AVC program's annual transfer-in window runs January to June, making early 2026 a key decision period for lump-sum moves before it closes on June 30.
- •Updated 2026 contribution limits, tied to YMPE, and the March announcement of the prior year's return create timely opportunities for tax-deductible savings without affecting the main plan's deficit.
- •New 2026 flexibility to fund leave purchases via AVC transfers adds a layer for members balancing career breaks against retirement growth, though RRSP room is reduced by pension adjustments.
Timing and Stakes for OMERS AVCs
OMERS, covering over half a million municipal and public sector workers in Ontario, offers Additional Voluntary Contributions as an exclusive way to boost retirement savings. These accounts invest in the same diversified OMERS Fund as the core defined benefit pension, delivering net returns after modest fees—$35 annual administration plus a variable MER—without the profit margins of retail alternatives.
The program runs on strict annual cycles. Lump-sum transfers from other registered accounts are restricted to January 1 through June 30 each year, up to age 70. Automatic contributions via payroll or bank debit continue year-round for working members, subject to limits recalculated annually using factors like the Year's Maximum Pensionable Earnings.
In early 2026, members contend with fresh limits and the recent disclosure of the 2025 fund performance (typically around March 1), which directly credits to AVC balances. The March 19 session aligns with this post-year-end phase, when statements circulate and decisions on contributions or transfers intensify ahead of the window's close.
Stakes are material for long-term growth. Strong historical fund performance compounds tax-sheltered, but missing the transfer window delays potential inflows by a full year. Contributions reduce taxable income immediately, yet generate pension adjustments that shrink personal RRSP room the following year. For members using new 2026 leave purchase options, AVCs can serve as a payment source, trading liquidity for credited service during career interruptions often linked to family or health.
Tensions exist: the program's stability contrasts with occasional main-plan adjustments (like variable inflation protection), and low fees appeal versus retail volatility, but locked-in rules limit flexibility for some funds after age 71.
Overall, no sweeping overhaul drives urgency, but the cyclical nature—deadlines, fresh data, and evolving integration—makes AVC decisions consequential in this period.
Sources
- https://members.omers.com/information-sessions-and-webinars
- https://members.omers.com/additional-voluntary-contributions-avcs
- https://assets.ctfassets.net/na4vk285lvnk/4vzDKfKGq4gUV6GdlENHH6/1bfad31ff5a4fbb02d75afdc6c60d7a8/AVC_Guide_2026.pdf
- https://newsletter.omers.com/en-CA/member-q4-2025
- https://newsletter.omers.com/pension-administration-update-q1-2025
- https://www.omers.com/mid-year-investment-update