The basic rules on Additional Voluntary Contributions to the Queen’s Pension Plan (AVCs) differ somewhat from a Registered Retirement Savings Plan (RRSP). Your AVC limit each year is 18% of your pensionable earnings in that year to a dollar limit ($25,370 for 2015) less your “pension adjustment” in that year. RRSPs work on the basis of the prior year’s information – CRA (formerly Revenue Canada) calculates your 2015 RRSP limit based on your 2014 tax filing, and will indicate your contribution limits when they send your assessment notice regarding the 2014 filing.
So, if you decide to make AVCs in 2015, you can make an RRSP contribution this year as well. When the Pensions Unit of the Department of Human Resources calculates your pension adjustment for 2014 (Box 52 on your T4 for 2014), we will include any AVCs made during the calendar year (either through the year by payroll deduction, or by lump sum contribution in December). Therefore, your 2015 RRSP limits will be reduced significantly (and may be eliminated unless you have some carry forward “room” based on unused RRSP limits of prior years).
Monthly AVC Application (114 KB)
Note: Your AVCs cannot be withdrawn prior to leaving Queen's. If you die in service, the value of your AVC account will be payable to your named pension beneficiary.
At retirement, the funds are yours and you have several options:
Questions? Contact the Department of Pensions and Insurance.