From 1 March 2015, a change to tax law has permitted pension fund members the option of “deferred retirement”. This means that pension funds are allowed to change their rules so that members are able to delay their retirement from the pension fund. This change enables a member who intends to keep on working after retirement, to defer the conversion of their Member Account Balance (i.e. the pot of money saved in the pension fund) into an annuity (pension) until such point as they are ready to start drawing a pension.
To put this in technical terms: a member’s retirement benefit now accrues only when the member makes an election regarding the payment of the benefit, rather than on the date of retirement from the Employer, as it does now.
OMEGS members who would like to defer the conversion of their Member Account Balance into an annuity at retirement can contact the SuperFund Call Centre (0860 20 30 40) for assistance.
