If you leave the scheme before you retire, you can choose what to do with your pension. There are different options available to you depending on how long you have been in the scheme and your age at leaving.
Membership under two years and no pension transfers
If you have both...
- been a member for less than 2 years
- have not transferred in another pension from elsewhere
...on leaving, you have the following options:
- You can claim a refund of your contributions
- You may be able to transfer your benefits to a new pension arrangement
- You can delay your decision until you know what you would like to do - this is known as a frozen refund. You have a maximum of 5 years after leaving to make your decision.
Membership over two years or have made a pension transfer
If you have either...
- been a member for 2 years or more
- transferred in another pension from elsewhere
...on leaving, you have two options:
- You can choose to keep your pension in the Scheme - this is known as deferred pension. CARE pensions can go down as well as up, and this applies for both active and deferred members. Your pension from the Scheme is increased each year in line with the cost of living which is measured by the Consumer Price Index (CPI). Once in payment they cannot go down, so in the rare case of deflation, your pension would remain unchanged.
- You may be able to transfer your pension to a new pension arrangement, although in some circumstances you may need to receive impartial, independent financial advice before you can do so.
