OMERS Pension Guide

Retirement Benefits

When can I withdraw benefits?

The normal retirement age for the plan is 65 but benefits can be taken at any time from age 55. This minimum retirement age changes to 57 from 2028 with the Government’s intention to eventually link it to 10 years below the prevailing State Pension Age.

What are the benefits at retirement?

➢ The overall aim is to accumulate as large a pension fund as possible throughout your working lifetime. ➢ When you eventually retire, 25% of your accumulated fund value can be withdrawn as a tax free lump sum (up to a maximum tax free lump sum of £268,275). ➢ The remaining 75% is used to provide you with an income (which will be subject to income tax). ➢ Various income options are available to you – Income Drawdown and Annuity to name just two. Anyone nearing retirement should seek advice to establish what is most suitable based on the specific needs and circumstances.

What happens in the event of death before retirement?

➢ In the majority of cases, the full value of the Aviva Pension fund will be payable to your beneficiaries as a tax-free lump sum. ➢ However, please note that only the first £1,073,100 of any lump sum payable from Pensions is tax free – any excess will be taxed at your beneficiaries’ marginal rates of income tax. Any lump sums previously withdrawn from Pensions (along with any ‘Registered’ Group Life benefits) count towards this £1,073,100. ➢ It is absolutely essential for all members to complete a Nomination form with Aviva. This is the only way you can ensure that your chosen beneficiaries receive the value. ➢ This can be done online with Aviva – and we urge all members to do so. ➢ Nominations can be updated online at any time with the latest Nomination automatically superseding any previous instructions.

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