Scheme information

Normal retirement

For each year that you contribute to CARE you will earn a basic amount of retirement income. This annual sum is added to the accumulated income you have built up in previous years.

The retirement income amount earned each year is based on your pensionable pay in that year and your build rate. To take account of inflation, your accumulated retirement income is also revalued.

If you contribute for only part of a year then your basic amount earned in that year and the revaluation will be adjusted accordingly. 

Your basic amount

Your basic amount of retirement income earned in a year is based on that year’s pensionable pay. It is calculated as your build rate multiplied by your pensionable pay e.g:

1.25% x £22,500 = £281.25

Your build rate

Your build rate is the percentage used to calculate your basic amount each year. You can elect a different build rate with effect from 1 April each year. Each build rate requires a different contribution rate.

Your annual revaluation

Each year on 1 April your accumulated retirement income will be revalued in line with inflation* up to a maximum of 2.5% for pensionable service accrued after 1 July 2010.

At retirement, your accumulated annual retirement income will be paid as a monthly pension, which is taxed. You will have the option to exchange part of it for a tax free cash sum. 

*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’).