OMERS Pension Guide

Overview

What is this Plan?

It is a Group Personal Pension Plan.

This is a long-term savings arrangement that allows you to build wealth in a highly tax efficient manner. The objective is to accumulate as large a fund as possible by the time you retire. When you reach retirement age (currently, the earliest age is 55 but this rises to age 57 from 2028), you have a wide range of options and flexibility in terms of how you withdraw benefits. Please note that although the Pension provider is fully involved, the Pension is entirely owned by you personally. You decide how the value is invested (although there is a default fund). You decide when benefits are withdrawn (currently, at any age from age 55 onwards, rising to 57 from 2028) and you decide how benefits are withdrawn. We believe that this is exactly how it should be – maximum member flexibility. OMERS main ongoing involvement is restricted to paying a regular matching company contribution towards your Pension.

What are the Tax advantages?

There are three significant tax advantages:

Tax Relief on Contributions

➢ Personal contributions attract full income tax relief at your marginal rate. ➢ With the Salary Exchange option, personal National Insurance savings will also be enjoyed. ➢ In addition, the OMERS ‘boost’ to Salary and STIP Allocation Exchange related contributions further (and significantly) enhances the relief available.

Tax Free Growth

➢ Any investment growth achieved within the Pension is tax free (excluding any local withholding taxes on any overseas assets). Over the longer investment terms typically associated with Pensions, this is genuinely meaningful.

Tax Free Cash Lump Sum at Retirement

➢ When you decide to withdraw benefits, 25% of the accumulated value can be withdrawn tax free (up to a maximum tax free lump sum of £268,275).

It is these tax ‘breaks’ that give Pensions compelling advantages over any other form of mainstream investment.

Who provides the Workplace Pension Plan?

Aviva is the current provider.

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