OMERS Pension Guide

Will paying Salary Exchange contributions affect my student loan repayments as they are based on my earnings?

Yes. The amount you are required to pay in student loans may be lower as it is based on your pay after the Salary Exchange contribution reduction. If you pay off your loan at a reduced rate, you will end up paying it back over a longer period, so it may cost you more in interest.

How often can I change my level of Salary Exchange contributions?

➢ The main Salary Exchange review will take place each March - during which time you will typically have a 2-week period to notify of any changes you wish to make. ➢ Any change instructed will be effective from the following month (April) onwards. ➢ Employees will receive clear information each March, confirming the process for those that wish to change their rate of Salary Exchange. In the absence of any employee instruction before the specified deadline, existing rates of Salary Exchange will continue for the following year. ➢ You can also make changes in the event of a ‘lifestyle change’ such as buying a new home, marriage/civil partnership, childbirth/adoption, divorce, promotion or significant changes to working hours. ➢ In addition, one ‘ad hoc’ change per year will also be permitted. This is to assist those who may need to make a change mid year. Please note the ad hoc change allows for an increase or decrease (to no lower than the minimum member contribution rate). Stopping Salary Exchange altogether can only be instructed at the main Review date in March.

What happens to my contributions in the event of a salary increase/decrease?

The amount you contribute is based on a percentage of salary chosen by you. This percentage will not change unless you instruct a change (as outlined above). Contributions will therefore increase or decrease automatically in line with your new salary.

I’m a new employee - what do I need to do to instruct Salary Exchange?

For brand new employees, the 5% default rate is contractual – by signing your contract of employment, you are accepting Salary Exchange at this default rate. If you are happy with this, there is nothing more that you need to do.

To increase the rate of Salary Exchange beyond the default 5%, please refer to the previous ‘Member Instruction Form’ section and return your form.

The increased Salary Exchange will start from the next available month.

How long will Salary Exchange contributions be an option?

The intention is for Salary Exchange contributions to remain in place indefinitely. However, as company circumstances and legislation may change, OMERS reserves the right to withdraw Salary Exchange contributions without notice or compensation and switch employee contributions to the conventional, net pay basis.

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