FAQs

Furlough and how it affects your pension

Members will continue to build up CARE pension based on the actual pay they receive. If the furlough pay is less than their normal pay (because the employer chooses not to top up pay to 100%), the pension they build up will also be less. They can choose to buy additional ‘extra’ pension to make up for the pension lost during this period. The employer is not obliged to split the cost with the member but can choose to.

Final salary benefits are usually calculated using the pensionable pay earned in the year before leaving the scheme; however, one of the two previous years' pay is used, if higher. This should prevent final salary benefits from being detrimentally affected if the member’s pay is reduced due to being on furlough.

A certificate of protection will not apply because the reduction is temporary.