Example of a full-time member with zero McCloud Guarantee Amount

Member Details

  • Full-time throughout Remedy period
  • Full-time pensionable pay at leaving: £42,000

Step 1: Calculate CARE pension built up during Remedy period

Assume pensionable pay and annual revaluation produce the following CARE pension:

Scheme YearCARE pension built up
2014/15£800
2015/16£820
2016/17£840
2017/18£860
2018/19£880
2019/20£900
2020/21£920
2021/22£940

Total CARE pension at retirement after revaluation is £7,300 per year.

Step 2: Calculate hypothetical final salary pension

Assume:

  • Remedy membership = 8 years
  • Final pensionable pay = £42,000
  • Final salary accrual rate = 1/60

8years × 1/60 × £42,000 = £5,600 per year.
Hypothetical final salary pension is £5,600 per year.

Step 3: Compare CARE and Final Salary Benefits

BenefitAnnual Pension
CARE pension£7,300
Hypothetical final salary pension£5,600

Because the CARE pension is higher than the final salary comparison pension, there is no additional pension due as a result of McCloud protection.