Scheme information

Ill-health retirement

If you are a member of CARE you may be covered for benefits if you become too ill to work. There are two levels of cover:

  • Incapacity; and

  • serious incapacity.

The benefit you receive will depend on the severity of your illness at the time and your ability to continue working.

You must be a contributing member under age 65 and have been a member of CARE or any other company pension arrangement for at least six months.

The Company decides whether you are entitled to incapacity and serious incapacity pension. It will need satisfactory medical evidence of your ill-health before any pension is paid. Once in payment, your pension will be increased in the same way as normal retirement income. You will have an option to exchange part of your pension for tax-free cash sum. 

Incapacity

Irrespective of age, you may receive an immediate retirement income unreduced for early payment, if the Company considers your ill-health permanently prevents you from working in any of the following:

  • Your current job;

  • Any other job which you could be expected to carry out under your contract of employment; or

  • A job which a person of your skills and experience could reasonably be expected to undertake.

Your incapacity retirement income will be based on the accumulated retirement income that you have built up to date. If you have any AVC account balances, these will be used to increase your income.

If you are receiving the incapacity pension and are under age 65, the Rules allow the Trustee to conduct periodic reviews to see whether you still qualify for that pension if your health has improved it can reduce or stop payments. If the payment of your partial ill health pension is stopped, it will recommence once you reach age 65.

Serious incapacity

In the event, you become so ill that you are required to leave service and the Company considers you will not be able to do any kind of work again, an enhanced serious incapacity pension may be paid immediately.

This is equal to your accumulated retirement income, uplifted by the ratio of the amount of service you would have achieved if you had worked until age 65 (compared to your actual service to the date of your retirement).

If you have any AVC balances, these will be used to increase your income.

The Rules allow the Trustee to conduct periodic reviews and take appropriate action as with ‘Incapacity’.

You will have an option to exchange part of your pension for tax-free cash sum. If your life expectancy is particularly short and you have less than 12 months to live, under special circumstances the Trustee may let you exchange all of your pension for a cash sum.

This does not affect any spouse’s or dependant’s pension that would be payable after your death.

Serious commutation

If your life expectancy is particularly short and you have less than 12 months to live, under special circumstances the Trustee may let you exchange all of your pension for a cash sum. This does not affect any spouse's or dependant's pension that would be payable after your death.