In the unfortunate event of your death, it’s important to know what will happen to your CARE pension benefits when you die.
Whilst you are paying into CARE, you get life cover to help take care of your loved ones once you’re gone.
A lump sum equal to four times your annual Pensionable Salary is payable, as well as a Spouses/Dependants pension for life. There is also pension provision from any eligible children.
If you are no longer paying in to CARE but you have retained your CARE benefits in the scheme, a lump sum equal to the value of the CARE contributions you have paid in is payable, as well as a Spouses/Dependants pension for life. There is also pension provision from any eligible children.
What if I’ve already retired?
If you have already claimed your CARE pension benefits and you die in retirement, a lump sum equal to five times your annual CARE pension, less any CARE pension already paid up to the date of death is payable. A Spouses/Dependants pension for life is also payable, as well as a pension for any eligible children.
If you were to die having been in receipt of your CARE pension for five or more years, only the Spouses/Dependants pension would be payable.
If you leave a Dependant, they will be paid a pension for life equal to one half of the CARE pension payable at your date of death, before any reduction to your pension if you took a cash lump sum at retirement.
The CARE pension payable may be reduced if your Dependant is more than ten years younger than you.
A summary of the above can be found below:
Children’s pensions
An eligible child is under age 18, or if they are in full-time education, under age 23.
If there is an Adult Dependants Pension payable, one child will receive 50% of the Dependants Pension, two children will receive 100% of the Dependants Pension between them.
If there is no Adult Dependants Pension payable, one child will receive 100% of the Dependants Pension and two children will receive 200% of the Dependants Pension.
If there are more than two children, the proportions of their allowances will be divided at the discretion of the Trustee.
Expression of Wish
It is really important that you tell us who you would like the Trustee to pay any lump sum death benefits to in the event of your death.
You can update your Expression of Wish Form electronically in your online CARE Member Account.
Please note, Expression of Wish Forms completed before February 2021 are not held electronically so will not show in your online CARE Member Account.