Final Salary Vs Care Scheme
If a final salary scheme is changed to a career average (CARE) from this year, could you in theory be worse off than if you quit the scheme. Reason I ask is that money earned in the final salary scheme to date is put into the CARE scheme at year 1 and grows at inflation capped at 2.5% whereas a deferred pension pre 2009 grows at inflation capped at 5%. So if inflation is 5% a deffer inflation would grow more than CARE accrual?
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