91热爆

Career Average Benefits

The CAB 2006 section is closed to new members. It is a pension arrangement under which benefits build up year on year and reflect your pensionable earnings during your membership of the Scheme.

Do I have to be a CAB member?

No, you do not have to be a CAB member.

Opting out

You can end your membership without leaving service, subject to at least two months' notice. To do so you will need to complete an opt-out form, which you can get by contacting the pension service line.

Once you have opted out, you cease to build up benefits and become a life assurance member.  You should read the note '91热爆 Pension Scheme death in service provisions' for more information. The note is available from the pension service line.

Pension provision is an important element of your reward package. By opting out you will be giving up a valuable benefit. Therefore before making such a decision, you should consider taking independent financial advice.

Rejoining the scheme

Having opted out, you will have no automatic right to rejoin the scheme. Instead, you will be able to join LifePlan - the 91热爆's defined contribution plan.

How much does it cost?

Benefits are paid for partly by you and partly by the 91热爆.

Your share of the cost

Currently, you pay 4% of your pensionable salary. This can be varied jointly by the 91热爆 and the Trustees. It cannot go above 6% without a change to the scheme rules.

As a CAB 2006 member your contributions will normally be met through salary sacrifice. This is called 'Smart Pensions'. Your basic salary is reduced, currently by 4%, and the 91热爆 pays an equivalent amount as an employer contribution to the Scheme on your behalf. Because your basic salary is lower, you will usually pay lower National Insurance contributions. The income tax you pay is unaffected by Smart Pensions. This is because PAYE income tax is always applied to earnings after any pension contributions have been deducted. For some members (e.g. those on low pay or receiving State benefits) Smart Pensions may be disadvantageous. If you are one of them, you will be excluded automatically and alternative arrangements will be made to collect your contributions. If you want to know more about Smart Pensions, there is a leaflet you can get by contacting the pension service line.

If you want to know more about Smart Pensions, there is a leaflet you can download here

Employer contributions

In addition to whatever contributions they pay under Smart Pensions, the 91热爆 and other participating employers pay contributions to cover the balance of the cost of providing your Scheme benefits, as agreed with the Trustees. In other words, your employer carries the risks associated with investments and with people living longer, which will affect the cost of providing the benefits you have built up.

Additional Contributions

To join LifePlan or vary your contributions login to the site via Gateway or for more information visit . Alternatively, you can pay additional contributions to your own personal pension.

What happens if I opt out or leave service?

You stop building up benefits when you opt out or leave service.

You will be entitled to a deferred pension payable at normal pension age. Your pension will be calculated as outlined in the guide to building up your pension.

Deferred CAB 2006 pensions receive the same discretionary increases as active CAB 2006 members (see the guide to pension increases).

You can ask for your deferred pension to be paid before normal pension age, either because of incapacity or from age 55 onwards. Payment is subject to the agreement of the Trustees and your pension will be reduced for early payment. The reduction will be decided by the 91热爆 and Trustees after consulting the scheme's actuary. In cases of incapacity, the Trustees have discretion to waive some or all of the reduction.

You can choose to transfer the value of your Scheme deferred pension to another registered pension arrangement in the UK or overseas at any time before your pension starts. Unless you confirm otherwise, the Scheme Trustees will assume that the purpose of the transfer is to provide defined contribution (DC) benefits under another pension arrangement. The transfer value will be calculated in line with overriding legal requirements and is designed to represent the actuarial value of your benefits. Please contact the pension service line for further information. If you choose to transfer the value of your benefits to a DC arrangement, unless its total value is £30,000 or less on the valuation date, the Scheme Trustees will be required to check that you have received appropriate independent financial advice from a suitable financial adviser approved by the Financial Conduct Authority.  If you are considering transferring your pension please beware of pension scams. Falling foul of a scam could mean you lose some or all of your money. Go to for more information.

Different pension providers offer different options in relation to what you can do with flexible benefits, including the option to select an annuity. Different options have different features, different rates of payment, different charges and different tax implications.

There may be tax implications associated with accessing flexible benefits. Pension income is taxable and the rate at which income from a pension is taxable depends on the amount of income you receive from your pension and other sources.

Does temporary absence affect my pension?

Temporary absence from work does not affect how your benefits build up while you remain in service on full pay.

During authorised unpaid absence, you are opted out of Smart Pensions automatically and will not build up career average benefits. You cannot make good the 'lost' benefits. On return to work, you will be re-admitted to Smart Pensions and your benefits start to build up normally again provided you meet the conditions below: 

• you must not join another occupational pension;

• you must remain resident in the UK for income tax purposes;

• the absence does not last longer than 10 years; and

• if the absence is expected to last more than 3 months you must agree with your employer and the Scheme before the absence starts that you can continue to build up benefits when you return to work.

If you do not return to work at the end of an unpaid absence, or you do not meet any of the above conditions you will be treated as having left service on the day your pay stopped and will not be permitted to re-join the Scheme.

During all temporary absences, whether paid or unpaid, you will be covered in full for death in service benefits.

Sickness and family leave

While on paid sickness absence or family leave (ie maternity, adoption, paternity or parental support leave) you continue to participate in Smart Pensions.

However, you are opted out of Smart Pensions automatically in the month in which you start to receive statutory pay only through payroll. Your contributions will then be collected temporarily through the payroll and based on your actual pay.

Your pension will usually build up based on your original pensionable salary.

Secondments

Members seconded to work for another, non-participating employer cease to participate in Smart Pensions but can continue to build up career average benefits on condition that:

• contributions are paid by the non-participating employer and the member during the same scheme year in which the benefits build up;
• there is a definite expectation that the member will return to work for the 91热爆, or another participating employer;
• the secondment, in total, does not exceed 10 years; and
• benefits build up using the pensionable salary that the member would have received, if they hadn't been seconded.

Career breaks

If your employer agrees to you taking a career break, you will be treated as having left service. If you are re-employed, you will be able to re-join CAB 2006 provided you were an active CAB 2006 member at the time you go on the career break. If you re-join CAB 2006, then your pensionable salary will not be greater than that it would have been had you not taken a career break. When planning a career break, you should consider carefully the impact it will have on your career average benefits. Help is available from the pension service line.

How does my pension build up?

The scheme year runs from 1 April to 31 March. For each Scheme year (or part year) that you are an active CAB member you, build up a block of pension equal to 1.67% of your pensionable salary, payable at normal pension age.

The intention is that at the end of the following Scheme year, and annually thereafter, the 91热爆 and the Trustees will jointly consider increasing each block of pension in line with price inflation. Increases are, however, wholly discretionary and must be agreed by both the Trustees and the 91热爆. Once awarded, increases cannot be reduced.

Your pension is the total of all the blocks of pension you have built up, plus discretionary increases.

Example:

In the first three years of her CAB 2006 membership, Kate's pensionable salary is £30,000, £30,300, and £30,603 respectively. During that time, the discretionary increases awarded each year are 2% and 1.5% respectively. The following diagram shows the build-up of Kate's pension:

Pensions build up in: Year one Year two Year three

Total: £1,543.36

Year one salary 1.67% x £30,000 = £501 £501 x 2.0% = £10.02

£501 + £10.02 = £511.02 £511.02 x 1.5% = £7.67

£518.69

Year two salary 1.67% x £30,300 = £506.01 £506.01 x 1.5% = £7.59

£513.60

Year three salary 1.67% x £30,603 = £511.07

Transfers-in

The Scheme does not accept transfers-in from other pension schemes.

When can I take my pension?

Early Payment

If you have two or more years' pensionable service, you can leave service and ask for your pension to be paid early at any time from age 55 onwards. Early payment requires the 91热爆's agreement, and your pension will be less than that payable at normal pension age. This is because:

• it is based on the pension you have built up when you leave service and is, therefore, less than if you had continued as an active CAB 2006 member until normal pension age; and
• it will be reduced to allow for it being paid for a longer period than expected.

The reduction depends on your age at the time your pension comes into payment. The scale of reductions is set by the 91热爆 and the Trustees at the beginning of each calendar year. The following percentages are currently in use:

Following completion of the latest valuation and as part of the annual review some of the factors used to work out benefit options will change from 1 April 2024.

Between birthdays a proportion of the reduction is applied.

Here is an example of how an early pension is calculated:

Total pension built up to date - Early retirement reduction = Early retirement pension

Example:

John leaves the 91热爆 on his 60th birthday. His pension, including discretionary increases awarded to date, is £10,000 pa. If he decides to defer taking it until normal pension age, it will continue to attract the same discretionary increases as are awarded to active CAB members. It will then be paid without reduction when he reaches age 65. If he asks for immediate early payment of his pension, it will be reduced by 24% (see table above).

John's early retirement pension is £10,000 pa less 24% = £7,600 pa.

Late payment

You can continue working after age 65 and remain an active CAB 2006 member. Your pension will continue to build up and be paid when you eventually leave service or reach age 75, whichever is earlier.

You will stay in Smart Pensions, but will not have to pay National Insurance contributions after State Pension Age.

Flexible payment

If you have two or more years' pensionable service and are aged at least 55, you can ask for your pension to be paid, while continuing to work for your employer, provided that the 91热爆 agrees. Any pension taken before normal pension age under the flexible payment provisions will be reduced for early payment. A leaflet explaining flexible payment in more detail is available from the documents section.

Incapacity pensions

Incapacity means physical or mental impairment as a result of which, on the evidence of a doctor or other qualified person appointed by the 91热爆, the Trustees are satisfied:

• that you are incapable of carrying out your normal occupation; and
• it is likely to permanently and substantially impair your earning capacity.

If you leave service because of incapacity before normal pension age, you will receive an immediate pension provided the 91热爆 agrees.

If you have completed less than two years' continuous pensionable service, the pension will be reduced for early payment. If you have completed two or more years' continuous pensionable service and you are:

• unable to carry on your normal occupation, the pension will not be reduced for early payment; or
• unable to follow any occupation, the unreduced pension will be increased by the additional pension you would have built up, without revaluation, had you remained an active CAB 2006 member until normal pension age on your current pensionable salary.

Incapacity pensions are subject to review and can be reduced or stopped if the Trustees believe that a member has recovered to any extent.

Can I exchange part of my pension for cash?

You can exchange part of your pension for a lump sum cash payment, which is currently tax-free. This is known as 'commutation'.

The maximum lump sum you can take is currently four times your pension. If you take cash, your pension will be reduced. The commutation factors are set by the 91热爆 and the trustees at the start of each calendar year.

Taking cash does not affect the pension payable to your qualifying spouse, qualifying civil partner or dependants. It will still be calculated on your full pension, as though you had not chosen to exchange part of it for cash.

The table below shows the lump sum payable for every £1 of pension exchanged.

Before making the decision to exchange pension for cash, you should consider taking independent financial advice

Does my pension increase after it starts?

CAB 2006 pensions are reviewed annually and any increases are awarded on 1 April. The Trustees increase pensions in payment by the lesser of:

• the rise in the retail prices index (RPI) for the previous calendar year ending 31 December; or
• 2.5%.

Increases are calculated on your actual pension in payment.

When the rise in the RPI is greater than 2.5%, the 91热爆 and the Trustees may jointly award a discretionary increase.

Increases are reported on the news section of this site and in the Annual Report.

What happens when I die?

Death in service

If you are an active CAB member and die in service before taking your pension, the following benefits are payable:

A lump sum

The Trustees will make a lump sum payment, which is currently free of inheritance tax. It will be equal to the lesser of four times your life cover pensionable salary as at the date of your death and your remaining Lifetime Allowance. You should read the note "91热爆 Pension Scheme death in service provisions" for more information. The note is available from the documents section.

The Trustees have discretion over who receives the cash and in what proportion. They take into account, but cannot be bound by, your wishes. You are therefore asked to let the Trustees know your choice of beneficiaries by completing an expression of wish form available from the documents section.

If the lump sum is restricted because of the Lifetime Allowance the balance will be used to provide additional pension for your dependants.

A dependant's pension

Your qualifying spouse, qualifying civil partner or nominated dependant will receive a dependant's pension calculated as follows:

• 50% of your pension built up to date, plus
• 50% of the future pension you would have built up, without revaluation, had you remained an active CAB member until normal pension age on your pensionable salary as at the date of your death

Example:

Janet dies at age 55. She therefore has a further 10 years' potential pensionable service to normal pension age. Her pension built up to date is £5,000 pa. Her pensionable salary when she dies is £25,000.

The dependant's pension is:

[50% of £5,000 = £2,500] plus [50% of {(1.67%* of £25,000) x 10} = £2,087.50] = £4,587.50 pa

* 1.67% is the rate at which your pension builds up.

Children's pensions

Your qualifying children (up to a maximum of two) will each receive a pension equal to half of the dependant's pension. If no dependant's pension is payable, the children's pensions will be doubled.

Death before your deferred pension starts

If you die before normal pension age and have a deferred pension, the following benefits are payable:

A dependant's pension

Your qualifying spouse, qualifying civil partner or nominated dependant will receive a dependant's pension of half of your deferred pension.

Children's pensions

Your qualifying children (up to a maximum of two) will each receive a pension equal to half of the dependant's pension. If no dependant's pension is payable, the children's pensions will be doubled.

Death after your pension starts

Your pension is payable for life. On your death, the following benefits are payable:

A dependant's pension

Your qualifying spouse, qualifying civil partner or nominated dependant will receive a dependant's pension of half your pension, as it would have been ignoring any cash you chose to take.

Example (ignoring increases):

John retires at the age of 65. His annual pension is £8,000 ignoring increases. He exchanges some of his pension for cash and receives a lower pension. He nominates his father, Jack, as his dependant.

Following John's death, Jack will receive a pension of £4,000 for the rest of his life.

Children's pensions

Your qualifying children (up to a maximum of two) will each receive a pension equal to half of the dependant's pension. If no dependant's pension is payable, the children's pensions will be doubled.

An incapacity pension lump sum

If you are being paid an incapacity pension and die before normal pension age, the Trustees will make a lump sum payment, which is currently free of inheritance tax. It will be equal to the lesser of four times your life cover pensionable salary as at the date you left service less any commutation lump sum, and your remaining Lifetime Allowance. If the lump sum is restricted because of the Lifetime Allowance the balance will be used to provide additional pension for your dependants.

The Trustees have discretion over who receives the cash and in what proportion. They take into account, but cannot be bound by, your wishes. You are therefore asked to let the Trustees know your choice of beneficiaries by completing an expression of wish form from the documents section.

Divorce or dissolution of a civil partnership

Your pension rights may be taken into account on divorce or dissolution of a civil partnership. The court can order your pension to be divided between you and your ex-spouse or ex-civil partner (ex-partner), although this depends on the terms of the settlement.

Couples can choose to offset pension rights against other assets (eg the family home) or 'earmark' some (or all) of a member's benefits to go direct to the ex-partner when they come into payment. Alternatively pension rights can be shared as part of a 'clean break' settlement. Pension sharing creates a 'pension credit' for the ex-partner and a corresponding 'pension debit' for the member.

The scheme's current policy is to use a pension credit to make a transfer payment to another pension scheme that will provide retirement benefits for the ex-partner. Scheme membership is not offered to an ex-partner.

The scheme makes a charge for:

• providing information in connection with divorce proceedings, over and above that which it has a duty to provide free of charge under the existing statutory disclosure requirements;
• compliance with a pension sharing order or agreement; and
• any other activities in connection with pension sharing.

A more detailed explanation of pension sharing, how the scheme operates a pension sharing order or agreement, and a schedule of its charges are available from the pension service line.

You should consult and be guided by a suitably qualified family law practitioner on all matters relating to divorce or dissolution of a civil partnership.