OMERS Pension Guide

Investment

What is the ‘Default’ Investment fund?

➢ With modern day Workplace Pensions, there has to be a ‘default’ investment fund. Contributions are automatically directed towards this fund (in the absence of any personal investment selections). ➢ The ‘default’ investment option is the Aviva Future Focus Drawdown Life Stage Approach. All contributions will be invested in this fund unless you instruct otherwise. For full details of the default fund, please click here. ➢ The ‘Lifestyling part of this fund means that during the initial investment period, a growth based investment strategy applies (higher equity exposure). A ‘de-risking’ approach automatically starts 15 years from reaching your retirement age (the default retirement age of the Plan is 65). The objective is to gradually reduce equity exposure (and thereby, risk) in the period leading up to retirement. ➢ This default approach assumes that Income Drawdown will be used as the eventual method of pension withdrawal. Based on the profile of the OMERS workforce, this is considered most likely. However, it may not be right for everyone and therefore, you should consider changing to one of the other ‘Lifestyling’ options if you think it more appropriate to your circumstances (please see the default fund guide for details). ➢ Likewise, age 65 has been selected as the default retirement age. This is relevant in terms of when the ‘de-risking’ process starts – one wouldn’t want this to be too early, or too late. If you wish to change your own specified retirement age, you can (please see the later ‘Member Instruction Form’ section). ➢ Default funds are designed to be a suitable option for an ‘average’ scheme member. However, we would urge all members to carefully consider their own personal requirements and consider whether the chosen default fund is right based on likely retirement age, strategy and the selected ‘lifestyling’ approach. If not, members need to make alternative investment selections that are better suited – and then keep their selection under review. Alternatively, members should take independent financial advice, where it is required (the costs of which are borne by the member personally).

What are the other Investment options?

There is a range of alternative options available with Aviva. For full details of the alternative funds, please click here.

How do I switch Investment funds?

If you wish to switch out of the default fund and choose your own investment funds, you will first of all need to register for full online access with Aviva. You will then be able to submit your instructions online. Please remember that you will be able to switch existing fund values, future contributions – or both. Please be careful to select the correct option so that you achieve what you want to do. To register for online access with Aviva, please click here.

Please remember that the value of the investment can fall as well as rise. You are not guaranteed to get back the full value of the overall investment.

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