CARE
Many employers face a conflict between wanting to provide a good level of pension benefits for their employees, for example by offering a 'final salary' defined benefit (DB) scheme, and the need for predictable pension costs, which are available from a defined contribution (DC) scheme.
Our CARE (Career Average Revalued Earnings) Scheme provides a ‘third way’ for companies that want to balance cost control with secure benefits. It provides members with a defined level of benefit, which offers both security and certainty.
Benefits are based on career average earnings, rather than earnings close to retirement ('final salary') and CARE is particularly suitable for employees with variable working patterns – those who move from full to part time or those whose earning potential drops off before retirement.
Employer costs are more predictable than the traditional final salary scheme as members’ benefits increase during their membership by Retail Price Index (RPI) rather than salary inflation. Early leavers are treated in the same way as contributing members; their deferred benefits also continue to increase in line with RPI.
The Pension Trust’s CARE Scheme