Employer Payroll Deduction Option Process Roadmap
Additional Voluntary Contributions (AVCs)
Example of AVC payroll deduction option administration
Pat is an HR administrator for the City of Anytown, Ontario.
Pat reads the AVC Employer Payroll Deduction Roles and Responsibility document.
Pat speaks with an OMERS representative regarding the new AVC Payroll Deduction Option. Pat has all questions addressed and tests Anytown’s payroll systems to ensure they can administer this option for their employees. Anytown decides to enrol as a participating employer. Pat already has EFT set up, so they can set up another EFT for the AVC account.
Based on Pat’s assessment of their payroll abilities and established monthly deduction practice, Anytown chooses an appropriate effective date to begin the AVC Payroll Deduction Option. Pat also chooses a pay period within the month for the deductions to come off and has set up the EFT payment arrangement under the AVC account number with OMERS.
Before the chosen effective date, Pat retests the payroll system and deduction process to confirm the process is ready for launch.
The AVC Employer Payroll Deduction Election Form and the AVC Employer Payroll Deduction Contact Form is signed and returned to OMERS in time to meet the chosen effective date.
OMERS provides Pat with communications that can be used to educate and inform employees about the AVC Payroll Deduction Option. These are provided in a digital format, so Pat can print them out as required and/or post them on their intranet to begin promoting the program before the chosen effective date.
Pat refines communications to employees promoting the program, to make it clear which pay the once-a-month AVC deduction will occur. Anytown’s policy is the first pay of the month (happening mid-month) as employees are paid twice per month. Pat also communicates any delays that may occur when employees start, stop or modify their contributions (e.g. changes may not take affect until the following month).
On the chosen effective date, the new AVC Payroll Deduction Option is launched. Pat’s employees can also now see the payroll deduction option on myOMERS (as a choice available under start contributions). In addition, Pat ensures all internal communications (e.g., intranet, electronic bulletin board, printing needs, etc…) about the new program are posted and available for employees.
On the fifth calendar day in the month chosen for the effective date (and for each month thereafter), OMERS sends Pat (and other pre-determined contacts) the AVC Employer Payroll Deduction Report via encrypted email which outlines any of Anytown’s employees who have decided to set up payroll deduction, modify their contributions, or who have decided no longer to participate in the program (sample of file, below).
Current AVC payroll deductions
Last Name
First Name
Membership Number
Social Insurance Number
Employee ID
Effective From Date
Effective To Date
Current Contribution Amount
Doe
John
8888880-01
123 456 789
564
1-Jan-14
$250
Smith
May
8888881-01
123 456 790
565
1-Jan-14
$200
New AVC payroll deductions
Last Name
First Name
Membership Number
Social Insurance Number
Employee ID
Effective From Date
Effective To Date
Contribution Amount
Duncan
Paul
5555555-01
5555555-01
567
1-Feb-14
$120
Modified AVC payroll deductions
Last Name
First Name
Membership Number
Social Insurance Number
Employee ID
Effective From Date
Effective To Date
Contribution Amount
Jones
Jon
5555551-01
123 456 791
566
1-Feb-14
$75
Stopped AVC payroll deductions
Last Name
First Name
Membership Number
Social Insurance Number
Employee ID
Effective From Date
Effective To Date
Contribution Amount
Robinson
Jack
4444444-01
123 456 780
563
1-Jan-14
3-Feb-14
$0
11. Pat will ensure deductions are made during the first pay period of the month (as determined above) and remit those monies to OMERS within a three-business-day period after deduction.
12. Along with deduction amounts, Pat also provides the AVC Employer Payroll Deduction Confirmation Report to OMERS, outlining the remittance for each participating member. Pat ensures social insurance numbers are removed from the file sent back to OMERS.
13. Moving forward, Pat receives the encrypted email with the AVC Employer Payroll Deduction Report from OMERS on the fifth business day of each month, outlining current deductions, new setups, changes to existing AVC deductions and deletions. Pat also continues to deduct payroll contributions on the first pay of each month and remit the monies for such deductions (along with the AVC Employer Payroll Deduction Confirmation Report, indicating remittance by participant) within three business days to OMERS.
14. During the year there may be AVC payroll deductions reported but not taken (e.g. an OTCFT employee does not work for a full pay period so they have no pay or not enough to cover the authorized deduction). Pat knows to alter the AVC Employer Payroll Deduction Confirmation Report to OMERS for this outcome.
15. At year-end Pat adds AVC payroll deductions to RPP contributions and pension adjustments on the employee’s T4, example:
RPP Contribution
Pension Adjustment
Defined Benefit
$5,907.16
$7,096.00
AVC payroll deductions ($50/month for 12 months)
$600.00
$600.00
Total for T4
$6,507.16
$7,696.00
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