Career average pension

Career average pension is a type of occupational defined benefit pension scheme in which a member's retirement income is based on an average of their earnings over the period they are an active member of the scheme rather than only on their pay at or near retirement. The slice of pension earned in each year is calculated from that year's pensionable pay and then increased, or revalued, up to retirement in line with an agreed measure of prices or earnings. In the United Kingdom the term is widely used for public service pension schemes that were reformed in the mid 2010s to provide benefits on a career average revalued earnings basis instead of a final salary basis.

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