Chief executive Damien Beddoes said the change had built on a presentation by the CINSF, input from trustee and investment managers and feedback from members.
“Now that the SIPO has been approved by the board, the CINSF office is working hard with the service providers to make changes to systems and processes, develop a new members’ handbook, and prepare information about the different funds to ensure members can make an informed choice about where they want to invest their money,” he said.
Members will be able to invest on three different levels. These funds will see a variation in the proportion of funds held in growth assets (equities) and income assets (cash, fixed interest and bonds).
The conservative fund (default) mirrors the existing portfolio that the fund has invested in since 2010. Thirty per cent will be invested in growth assets and 70 per cent in income assets. The balanced fund will consist of 60 per cent in growth assets, and 40 per cent in income assets. The growth fund will have 80 per cent invested in growth assets, and 20 per cent in income assets.
Members will be able to diversify the current balance of their investment across the range of funds or leave it all in one fund.
They can also determine whether they would like to split their contributions between the funds.
Pensioner accounts will remain invested in the conservative fund, but any voluntary contribution accounts they maintain in the CINSF can be invested within any of the new funds.