Benefits accrued on and after 1 January 2006

Before drawing your pension

Increases will be applied to your Annual Pension Credits on 1 January at the rate of the increase in the Retail Prices Index (RPI). The RPI used for this purpose is measured over the 12 months to the immediately previous September.

This increase will be subject to a maximum of:

  • 5% in any individual year for Annual Pension Credits earned before 1 March 2010; and
  • 2.5% in any individual year for Annual Pension Credits earned on and after 1 March 2010.

The Annual Pension Credit accrued in each subsequent CARE Scheme Year will first be increased on the 1 January that falls 12 months from the end of the CARE Scheme Year of accrual. Thereafter, this benefit will be increased on each subsequent 1 January until the date of commencement of pension.

After drawing your pension

Your pension will increase on 1 January each year in line with the increase in the RPI, up to a maximum of 2.5%.

The first increase will occur on the 1 January immediately after you begin to draw your pension. However, it may not apply to all the benefits that you have earned. Any benefit accrued in the year of commencement of pension will receive a first full increase at the 1 January falling 12 months after the end of the CARE Scheme Year in which the pension commenced.

The RPI used for this purpose is measured over the 12 months to the immediately previous September.