‘CARE’ stands for ‘Career Average Revalued Earnings
If you’re a member of the CARE section you build up a basic amount of retirement income each year based on your pensionable pay in that year. This is then revalued in line with price inflation* up to a maximum of 2.5% each year until you retire at age 65. The total amount of accumulated annual income built up over the years in CARE is then paid to you on a regular monthly basis for the remainder of your lifetime.
The Scheme provides benefits for you and your dependants both before and after your retirement.
The benefits you built up whilst you were a contributing member of AA Pension Scheme are covered in more detail throughout the website.
Membership of the Scheme will not affect your entitlement to the Basic State Pension, which is payable from State Pension Age.
CARE links the benefits earned in each year to the amount of your pensionable pay received in the same period. It also helps to protect your income against inflation eroding its value when you need it the most through a process of revaluation.
* With effect from 1 April 2018 the measure for price inflation will be the Consumer Prices Index (‘CPI’) rather than the current measure of the Retail Prices Index (‘RPI’).
