This page explains the main provisions for Career Average Benefits 2011 (CAB 2011) members of the 成人快手 Pension Scheme (the Scheme). It is intended only as guidance. The definitive provisions of the Scheme are set out in the Trust Deed and Rules, which supplement and override this handbook in the event of any difference. Some of the terms used (e.g. qualifying spouse) have a particular meaning and are in bold type wherever they appear in the text. There is an explanation of the terms used at the bottom of the page.
What is the Career Average Benefits 2011 (CAB 2011) section?
CAB 2011 is closed to new members. It is a pension arrangement under which benefits build up year on year and reflect your pensionable salary during your membership of the Scheme.
Membership of CAB 2011 was only available to employees who were active members of the Scheme on 30 November 2010 and who chose to join CAB 2011 before 1 January 2012.
If you chose to join CAB 2011 you will have opted out of your former section of the Scheme (Old, New or CAB 2006 benefits). Please refer to the relevant handbook for details of your benefits built up before opting out.
Do I have to be a member?
No, you do not have to be a CAB 2011 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 and Benefits Centre (see help and support).
Once you have opted out, you cease to build up benefits and become a life assurance member.
You should read the ‘Death in service lump sum payments’ guide for more information. The guide is available on the Documents section of the website.
Pension provision is an important element of your reward package. By opting out you will be giving up a valuable benefit. Before making such a decision, you should consider taking independent financial advice (see help and support).
Rejoining the Scheme
Having opted out, you will not be able to re-join the Scheme. Instead, you will be able to join LifePlan – the 成人快手’s defined contribution arrangement, visit the Lifeplan section for more information.
How much does it cost?
Benefits are paid for partly by you and partly by the 成人快手; details are set out below.
Your share of the cost
Currently you pay 6% of your pensionable salary. This can be varied if both the 成人快手 and Trustee agree.
As a CAB 2011 member your contributions will normally be met through salary sacrifice. This is called ‘Smart Pensions’. Your basic salary is reduced, currently by 6%, and the 成人快手 pays this amount to the Scheme. Because your salary after Smart Pensions 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 Scheme 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 guide available on the Documents section of the website.
Employer contributions
In addition to whatever contributions they pay under Smart Pensions, the 成人快手 and other participating employers pay contributions to cover the balance of the cost of providing your Scheme benefits, as agreed with the Trustee. In other words, your employer carries the risks associated with investments and with people generally living longer, which will affect the cost of providing the benefits you have built up.
Additional Contributions
You can pay additional contributions through the 成人快手 defined contribution plan (LifePlan) to boost your pension benefits. The 成人快手 will match additional contributions, paid from pensionable earnings, by CAB 2011 members up to a maximum of £25 per month (i.e. £300 each year). You can find out more about LifePlan by visiting .
Alternatively, you can pay additional contributions to your own personal pension. However, the 成人快手 will not match any other additional contributions.
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 2011 member, you build up a block of pension equal to 1.67% of your pensionable salary, payable at normal pension age.
Following the end of each subsequent Scheme year, each block of pension will increase in line with the lower of the percentage increase in the Government’s Consumer Prices Index (CPI) published for the previous calendar year ending 31 December and 4%.
From 1 April 2017, the 成人快手 may ask the Trustees to jointly agree a different revaluation percentage in certain circumstances, such as following periods of sustained negative deflation or if the 成人快手’s income has reduced significantly. In the event that agreement cannot be reached between the 成人快手 and the Trustees, the Scheme actuary will decide.
Once awarded, increases cannot be reduced. Your pension is the total of all the blocks of pension you have built up, plus increases.
|
In the three years of her CAB 2011 membership, Kate’s pensionable salary is £30,000, £31,000 and £32,500 respectively. During that time, the discretionary increases awarded each year were 2% and 1.5% respectively. The diagram shows the build up of Kate’s pension. |
Increase of 1.5% x £511.02= £7.67 p.a. | ||||
| Increase of 2.0% x £501.00= £10.02 p.a. | Increase of 1.5% x £517.70= £7.77 p.a. | ||||
| 1.67% x £30,000 = £501.00 p.a. | + | 1.67% x £31,000 = £517.70 p.a. | + | 1.67% x £32,500= £542.75 p.a. | |
| Year 1 | Year 2 | Year 3 |
After three years, Kate has built up a pension of £1,586.91 p.a. and will continue to build up pension in the same way up to normal pension age if they remain an active CAB 2011 member.
Transfers in
The Scheme does not accept transfers in from other pension arrangements.
When can I take my pension as an active member?
Payment at normal pension age
You can leave service at normal pension age (age 65) with an immediate pension payable for life.
Early payment
From age 55 (increasing to age 57 from 6 April 2028) onwards you can leave service and ask for your pension to be paid early. With the 成人快手’s agreement you can take your pension straight away. 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 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 成人快手 and the Trustee at the beginning of each calendar year. The following percentages are currently in use:
|
Age |
55 |
56 |
57 |
58 |
59 |
60 |
61 |
62 |
63 |
64 |
65 |
|
% reduction |
38.3 |
35.6 |
32.6 |
29.2 |
26.2 |
22.6 |
18.7 |
14.6 |
10.1 |
5.3 |
0 |
Between birthdays the reduction is proportionate.
Here is an example of how an early pension is calculated:
John leaves the 成人快手 on their 55th birthday. John’s pension, including discretionary increases awarded to date, is £15,000 p.a.
If John decides to defer taking it until normal pension age, it will continue to attract the same discretionary increases as are awarded to active CAB 2011 members. It will then be paid without reduction when they reach age 65.
If John asks for immediate early payment of their pension, it will be reduced by 38.3%. John’s early payment pension is calculated as
£15,000 less 38.3% = £9,255 p.a.
Late payment
If you work past normal pension age, there are three options available.
- continue as an active member and build up more pension that will start to be paid to you on the earlier of the day after you leave service or your 75th birthday. This will happen automatically unless you instruct the Trustee otherwise;
- take flexible payment (see below); or
- stop paying contributions (and no longer build up additional blocks of pension) but postpone taking your pension. The latest your pension can start to be paid to you is your 75th birthday.
Flexible payment
From age 55 (increasing to age 57 from 6 April 2028) onwards you can ask for your pension to be paid, while continuing in service, provided the 成人快手 agrees. Any pension taken before normal pension age under the flexible payment provisions will be reduced for early payment at rates decided each year by the 成人快手 and the Trustee. You will not build up any further benefits in the Scheme but could choose to join LifePlan, the 成人快手’s defined contribution pension plan, for future pension saving. See LifePlan for more information.
If you take flexible payment and were to die in service, your life cover from the 成人快手 will remain at four times your life cover pensionable salary, but may be reduced by any lump sum you receive when your pension starts by exchanging pension (commutation).
For more information read the ‘Death in Service lump sum payments’ guide published on the Documents section of the website.
Incapacity pension
Incapacity means physical or mental impairment as a result of which, on the evidence of a doctor or other qualified person appointed by the 成人快手, the Trustee is 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 and the Trustee and the 成人快手 agree, you will receive your scale pension starting the next day. 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’ 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 pensionwill be increased by the additional pension you would have built up, without revaluation, had you remained an active CAB 2011 member until normal pension age on your current pensionable salary.
Incapacity pensions are subject to review and can be reduced or stopped if the Trustee believes 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 paid tax-free by the Scheme subject to HM Revenue & Customs (HMRC) limits. This is known as ‘commutation’.
The maximum cash lump sum you can take is normally 4 times your pension. If you take cash by exchanging pension, your pension will be reduced. The table below shows the lump sum payable for every £1 of pension exchanged.
|
Age at pension claim date |
55 |
56 |
57 |
58 |
59 |
60 |
61 |
62 |
63 |
64 |
|
|
£20.70 |
£20.30 |
£19.90 |
£19.50 |
£19.10 |
£18.70 |
£18.20 |
£17.80 |
£17.30 |
£16.80 |
|
Age at pension claim date |
65 |
66 |
67 |
68 |
69 |
70 |
71 |
72 |
73 |
74 |
|
|
£16.40 |
£15.90 |
£15.40 |
£14.90 |
£14.30 |
£13.80 |
£13.30 |
£12.80 |
£12.20 |
£11.70 |
Contact us for rates after age 74.
Taking cash does not affect the benefits payable to your dependants or children. Those benefits will still be calculated on your full pension, as though you had not taken any cash. Before making the decision to exchange pension for cash, you should consider taking independent financial advice (see help and support).
Does my pension increase after it starts?
CAB 2011 pensions in payment are reviewed annually and any increases are awarded on 1 April. Pensions in payment increase by the lesser of:
- the rise in the Consumer Prices Index (RPI) for the previous calendar year ending 31 December; and
- 4%
Separately, the 成人快手 and the Trustee may jointly award a discretionary increase.
Increases are reported in the annual report, a copy of which is available on the Documents section of the website.
What happens if I opt out or leave service?
If you opt out or leave service, you will no longer be an active member.
You will be entitled to a deferred pension payable at normal pension age (or from the day after you leave service if later).
Your pension will be calculated as outlined above.
You can ask for your deferred pension to be paid before normal pension age, either because of incapacity or from age 55 (increasing to age 57 from 6 April 2028) onwards. Payment is subject to agreement by the Trustee and your pension will be reduced for early payment. If you opted out and are still in service, the agreement of the 成人快手 will also be required. The scale of reductions is set by the 成人快手 and the Trustee at the beginning of each calendar year. The following percentages are currently in use:
|
Age |
55 |
56 |
57 |
58 |
59 |
60 |
61 |
62 |
63 |
64 |
65 |
|
% reduction |
38.3 |
35.6 |
32.6 |
29.5 |
26.2 |
22.6 |
18.7 |
14.6 |
10.1 |
5.3 |
0 |
Between birthdays the reduction is proportionate. In cases of incapacity, the Trustee has discretion to waive some or all of the reduction.
Instead of being entitled to a deferred pension from the Scheme you can choose to transfer the value of your Scheme deferred pension to one or more registered pension arrangements in the UK or certain overseas schemes at any time before your pension starts. Alternatively, recognising that some members may want a mix of some pension payable for life plus pension saving that can be accessed more flexibility, when you claim payment of your deferred pension, you may be able to request a partial transfer. For more details go to transfers.
Unless you confirm otherwise, the Trustee will assume that the purpose of any 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 and Benefits Centre for further information (see help and support).
If you choose to transfer your Scheme pension to a DC arrangement, unless its total value is £30,000 or less on the valuation date, the Trustee 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.
Benefits from a DC arrangement are classed as flexible benefits. Different pension providers offer different options in relation to what you can do with your 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 that 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 that:
- whilst absent you did not join another occupational pension;
- whilst absent you remained resident in the UK for income tax purposes;
- the absence did not last longer than 10 years and there was a definite expectation that you would return to work for the 成人快手 or a participating employer; and
- if the absence was expected to last longer than three months you agreed with your employer and the Scheme before the absence started 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 rejoin the Scheme.
Sickness absence and family leave
While on paid sickness absence or family leave (i.e. maternity, adoption, paternity or parental support leave) you continue to participate in Smart Pensions. However, you are opted our of Smart Pensions automatically in the month in which you start to receive statutory pay only through the payroll. Your contributions will the 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 you during the same Scheme year in which the benefits build up;
- there is a definite expectation that you will return to work for the 成人快手, or another participating employer;
- the secondment, in total, does not exceed 10 years; and
- the benefits build up using the pensionable salary that you would have received, if you hadn’t been seconded.
Additional restrictions may apply if your secondment is outside the UK.
Career breaks
If it is agreed that you can take a career break, you will be treated as having left service. If you are re-employed, you will be eligible to re-join the Scheme as a CAB 2011 member so long as you do so at the first possible opportunity (i.e. immediately you become eligible).
If you re-join CAB 2011, then your pensionable salary will not be greater than 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 pension. Further information is available from the Pension and Benefits Centre (see help and support).
What happens when I die?
Death in service
If you are an active member and die in service, the following benefits are payable:
A lump sum
The Trustee will make a lump sum payment, which is currently free of inheritance tax. It will be equal to four times your life cover pensionable salary as at the date of your death, less any lump sums from commutation paid to you by the Scheme and any other lump sums payable from the Scheme on your death in respect of your current period of employment.
The Trustee has 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 Trustee know your choice of beneficiaries by keeping your expression of wish form up to date. If your circumstances change, a new form is available on the Documents section of the website.
You should read the ‘Death benefits lump sum payments’ additional guide for more information available on the Documents section of the website.
A dependant’s pension
Your qualifying spouse, qualifying civil partner or nominated dependant will receive a dependant’s pension calculated as follows:
- it will be half 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 member until normal pension age, based on your pensionable salary at the date of your death.
Example:
Janet dies at age 55. They have a further 10 years’ potential pensionable service to normal pension age. Janet’s pension built up to date is £5,000 and their pensionable salary at the date of death is £25,000.
The dependant’s pension is:
50% of £5,000 = £2,500
50% of {(1.67%* of £25,000) x 10} = £2,087.50
Total dependant’s pension = £4,587.50 p.a.
*1.67% is the rate at which pension builds up
The Trustee may reduce the pension if your qualifying spouse, qualifying civil partner or nominated dependant is younger than you by more than 10 years. The Trustee will decide the amount of any reduction after having consulted the Scheme’s actuary.
Children’s pensions
Your qualifying children (up to a maximum of two) will each receive a pension equal to a half of the dependant’s pension. If no qualifying spouse, qualifying civil partner, or nominated dependant’s pension is payable, the children’s pensions will be doubled.
Death before your deferred pension starts
If you die 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 calculated as follows:
- it will be half of the pension you would have received if you had taken it immediately before the date of your death (ignoring any reduction there would normally have been for early payment).
The Trustee may reduce the pension if your qualifying spouse, qualifying civil partner or nominated dependant is younger than you by more than 10 years. The Trustee will decide the amount of any reduction after having consulted the Scheme’s actuary.
Children’s pension
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 pension(s) 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. It will be half of your full pension with increases to the date of your death.
The Trustee may reduce the pension if your qualifying spouse, qualifying civil partner or nominated dependant is younger than you by more than 10 years. The Trustee will decide the amount of any reduction after having consulted the Scheme’s actuary.
Example:
Jack retires at age 65. Their pension is £8,000 p.a. Jack exchanges some of their pension for a cash lump sum and receives a lower pension. Jack nominates his partner, John, as their dependant.
Following Jack’s death, John will receive a pension of £4,000 p.a. for the rest of their life.
(The above example assumes that John is not more than 10 years younger that Jack)
Children’s pension
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 pension(s) will be doubled.
A lump sum
If you are receiving an incapacity pension and die any time before normal pension age, the Trustee will make a lump sum payment. It will be equal to four times your life cover pensionable salary as at the date you left service, less any other lump sums payable from the Scheme on your death and any lump sums from commutation paid to you by the Scheme.
Lump sum payments are currently free of inheritance tax. The Trustee has 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 Trustee know your choice of beneficiaries by keeping your expression of wish form up to date. If your circumstances change, a new form is available on the Documents section of the website.
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-partner (i.e. your ex-spouse or ex-civil partner), although this depends on the terms of the settlement.
Couples can choose to offset pension rights against other assets (e.g. 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, including how the Scheme operates a pension sharing order or agreement, and a schedule of its charges is available from the Pension and Benefits Centre (see page 15). You should consult and be guided by a suitably qualified family law practitioner on matters relating to divorce or dissolution of a civil partnership.
What pension benefits will I get from the State?
The State will provide you with a pension at State pension age depending on your National Insurance contribution history.
You can find out more about the State pension by visiting .
Where can I get help?
For help and advice about your pension go to the Help and Support section of this website.
Explanation of terms
These terms are in bold type wherever they appear in this handbook.
Active member
Is a member who has not yet left service or opted out, or become a pensioner in respect of the whole of their benefits under the Scheme.
Basic salary
Your basic salary is the amount determined by the 成人快手 as being your basic salary payable under the terms of your employment contract before Smart Pensions.
CAB 2011 earnings cap
The pensionable salary limit on which contributions and pension benefits are based. For the 2024/25 tax year it is £193,800.
Full pension
The annual amount of pension immediately before death, as it would have been but for any commutation.
Incapacity
Incapacity means physical or mental impairment as a result of which, on the evidence of a doctor or other qualified person appointed by the 成人快手, the Trustee is satisfied:
- that you are incapable of carrying out your normal occupation; and
- it is likely to permanently and substantially impair your earning capacity.
Life assurance member
An employee who is not an active member, but is covered for a lump sum on death in service.
Life cover pensionable salary
Your basic pay including any other earnings as may be recognised by the 成人快手 for this purpose before Smart Pensions.
Nominated dependant
A person nominated by you in writing as prescribed by the Trustee and accepted by it as satisfying the requirements set out in the Nomination of a Dependant form, which is available from the Documents section.
Normal pension age
Age 65.
Pensionable salary
In any Scheme year, your basic salary including any other earnings as may be recognised by the 成人快手 as pensionable before Smart Pensions where applicable. Pensionable salary is limited to the CAB 2011 earnings cap.
Pensionable service
The number of years and days of CAB 2006 Benefits membership as an active member.
Qualifying children
Your natural (including any not yet born) and adopted children, and any that the Trustee accepts were financially dependent on you at the date of your death. Benefits are payable to your qualifying children up to age 18 or, at the Trustee’s discretion, up to age 23 while in full-time education.
Qualifying civil partner
The person with whom you have entered into a civil partnership and with whom you are living at the date of your death. If the civil partnership is registered after leaving service, your partner will be treated as a qualifying civil partner only if the civil partnership was registered at least six months before your death.
Qualifying spouse
The person to whom you are married and with whom you are living at the date of your death. If you marry after leaving the service, your spouse will be treated as a qualifying spouse only if the marriage took place at least six months before your death.
Scale pension
The total of all the blocks of pension you have built up as an active member, plus discretionary increases.
Service
Service as an employee of the 成人快手 or a participating employer.
State pension age
The age set by the Government from which your State pension is payable. You can find out more about your State pension age by visiting