Costs

There are three different types of costs that affect you as an OMEGS member:

  1. Administration and JMC/governance expenses
    • The Administration cost is what we pay to Old Mutual SuperFund for administering our retirement savings.
    • The deduction for JMC and governance expenses is paid into an OMEGS Expense Reserve which is managed by the OMEGS Joint Management Committee. The Expense Reserve is used pay for investment consulting, benefit consulting, communication consulting, communication costs, legal costs, JMC expenses, travel costs, secretarial costs, etc.
    • Administration and Governance costs are charged as a percentage of your Pensionable Earnings. The deduction for these costs comes out of the Employer’s contribution to OMEGS.
    • You can find details about these costs on the Contributions page. Look for the details that apply to you under the “Office Staff” or “Field Staff” sections.
  2. Costs for Risk Benefits
    • The Risk Benefits cost refers to the premiums paid for Life Cover, Disability Cover and Funeral Cover.
    • These premiums are charged as a percentage of your Pensionable Earnings. The deduction for these costs comes out of the Employer’s contribution to OMEGS.
    • You can find details about these costs on the Contributions page. Look for the details that apply to you under the “Office Staff” or “Field Staff” sections.
  3. Investment Management Costs
    • Investment management fees are paid to the investment managers for investing your retirement savings assets.
    • There is also a capital charge for the Old Mutual Absolute Smooth Growth and Absolute Secure Growth Portfolios, which covers the costs of smoothing and the capital guarantee provided on these products.
    • Investment management costs are charged as a percentage of your assets. The fee quoted is the percentage cost per annum.
    • You can find details about investment management costs on the Investments page, under the “Investment Management Fees” section.