Is it true that career average schemes are always worse than final salary schemes?

No. For some members the benefits built up from April 2015 in the career average scheme will be better than those they would have built up if the Scheme remained a final salary scheme.

A career average scheme is often a better fit for those members whose opportunity for promotion is limited or who have a short period of service in the scheme. Final salary tends to suit some career patterns, usually those with promotion opportunities. Each individual will have their own circumstances but it’s incorrect to suggest that a career average scheme isn’t as good as a final salary scheme.

In fact, the improved rate at which pension builds up from April 2015 could mean that some members build up better pensions. Ultimately the Scheme is still a defined benefit pension scheme, but one which is career average rather than final salary.

Back to FAQs