Changes to your salary or working hours
Your CARE contributions are calculated on your Pensionable Salary.
Therefore, if your Pensionable Salary increases, due to a promotion, pay rise or an increase to your working hours, your CARE contributions will increase and so will your subsequent CARE pension benefits.
Additionally, if your Pensionable Salary reduces, due to a pay decrease or a reduction in your working hours, your CARE contributions will decrease and so will the future build up of your CARE pension benefits.
The following shows a comparison of CARE contributions, based on a CARE member who is full-time with a Pensionable Salary of £35,000 per annum, reducing their working hours to 50%:
As units of CARE pension are also calculated on your actual Pensionable Salary, the following comparison shows the build up of a unit of CARE pension for a full scheme year, using the same scenario above:
Secondment
As CARE contributions are calculated based upon your Pensionable Salary, if you are seconded to a post with a higher or lower salary, both yours and Network Rail’s CARE contributions will either increase or decrease in line with the Pensionable Salary you receive.
Career Break
If Network Rail agrees to your application for a career break, these are usually unpaid. Therefore, neither you nor Network Rail will pay CARE contributions for the duration of the career break and this is treated as a ‘break in service’ for CARE pension purposes. The impact on the build up of unit(s) of CARE pension will depend on the duration of the career break.
You will continue to be covered for death in service benefits for the duration of the career break, subject to the insurer’s terms and conditions.
Marriage or in a relationship
If you’re a Network Rail employee and a CARE member, it is important that you keep both Network Rail and the pension scheme administrators updated with your marital status, whether you’re married, have a civil partner or are in a long-term relationship.
If you’re married or have a civil partner, your partner will automatically be entitled to a spouse’s pension, which will be payable to them when you die.
If you’re in a relationship with someone and rely on one another financially, they may be entitled to an equivalent of a spouse’s pension when you die.
You may need to update your Expression of Wish Form to ensure the Trustee is aware of your wishes about the payment of any lump sum death benefit whilst you are employed by Network Rail.
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.
For further information about what happens to your CARE pension benefits when you die, please visit the what happens when you die section.
Maternity, paternity and adoption
Whilst you are on maternity, paternity or adoption leave, you will continue to pay CARE contributions, however these will be based on the actual pay that you receive. Network Rail will pay its contributions based on your normal Pensionable Salary.
If you have a period of unpaid maternity, paternity or adoption leave then no CARE contributions will be deducted until you return to work and your pay resumes. This will impact the unit of CARE pension that will be accrued for that scheme year(s).
During any paid and unpaid period of maternity, paternity or adoption leave, you will continue to be covered for death in service benefits, subject to the insurer’s terms and conditions.
Following your return to work, you can elect to pay CARE contributions for the period that you were on unpaid maternity, paternity or adoption leave to ensure the unit of CARE pension that will be accrued for that scheme year(s) is not impacted..
If you do not return to work your CARE membership will end with effect from the last day you paid CARE contributions.
Divorce or Dissolution of a Civil Partnership
When working out a financial settlement as part of a divorce, your pension benefits may be taken into consideration which could affect your CARE pension.
A court order, known as a Pensions Sharing Order, can be made and stipulated by the Court to transfer part of the value of your CARE pension benefits to your ex-spouse or ex-civil partner. If this is the case, it would mean your CARE pension benefits would be subsequently reduced.
You can request a Cash Equivalent Transfer Value (CETV) for divorce purposes by contacting NetworkRailPensions@wtwco.com. Please note there may be a charge for providing this information.
Additionally, as part of a Pensions Sharing Order, you may be entitled to a portion of your ex-spouse or ex-civil partners pension benefits. In this case, you may be able to transfer these benefits into your CARE pension.
To see if you are able to transfer benefits derived from a Pension Sharing Order into your CARE pension please contact NetworkRailPensions@wtwco.com.