Career average pension scheme

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A defined benefit pension scheme where the benefit for each year of membership is related to the pensionable earnings for that year.

In some such schemes the benefits may be revalued each year by a formula related to retail price inflation.

Also known as a Career Average Revalued Earnings (CARE) scheme.

A CARE scheme normally provides a pension based on a proportion of average earnings, after adjusting these for inflation, during the whole period of membership of the scheme.

See also