Pensions

There are two types of pension schemes: Defined Benefit – where the Benefit of your pension are defined in advance (at the start of the pension) and Defined Contribution – where the contributions are defined in advance (at the start of the pension) and are often a percentage of your pay. With a defined benefit pension, the risk is with the employer to ensure your pension pays as agreed at its inception. Whereas with a defined contribution pension, the risk is with the employee and the employer is only required to pay into the pension, the percentage agreed – which means the final value of the pension is not the responsibility of the employer, and is essentially unknown.

The AA have a number pensions schemes: The Final Salary Pension, The Career Average Earnings (CARE) Scheme, and the Work Save Pension. Although the Final Salary and Carer Average Schemes are both defined benefit schemes and are both now closed and not allowing staff to join them any further, there are still many existing AA employees still paying in to their CARE Scheme pension. The Final Salary pension is however, completely closed off. Remaining open to new joiners is the Work Save Pension – this is a defined contribution scheme. This is a pension scheme in accordance with government legislation as a minimal provision for all working people in the UK.

Changes to the AA’s pension schemes are always subject to the scrutiny of the IDU. Whilst we acknowledge that a change to a pension scheme is rarely to the advantage of the employee. We are also able to say that over the years, when we have been faced with the challenge of changes to your pension scheme – we have negotiated and intervened to secure the best possible outcome that the economy in general, and the business in specific could afford it’s staff.

The AA’s pension scheme is overseen by a board of trustees. The IDU has 2 representatives on the board of trustees, ensuring that we have a detailed understanding, not only of pensions in general, but of the active status of the AA’s pension pots, and schemes relating to them.

Our work on pensions is something that all AA staff – members and non-members alike benefit from. However, the fact that all benefit from our work here – is not a rationale for not being an IDU member. Being a member of the IDU gives you a platform to have your individual voice heard, and to be part of a collective voice. It gives you the opportunity to have your say on the pending pay rise (and other collective issues). There is much to be said for being a member in simple acknowledgement of the fact that you benefit from so much we do for AA staff as a whole, but more than that It also ensures you will be represented as an individual if you ever need it – with disciplinary, grievance, or capability hearings – by a trade union that knows the detail of these policies like no other.

Login Here (https://www.pensionline.org/aapensions/loginsplash.aspx) View your AA Pension Online

The IDU provide support for AA pensions holders, whether they are currently employed by the AA or not. If you are not a member, but would like to benefit from this service – Join Here

Further Reading

https://www.aapensions.com/

https://www.pensionsadvisoryservice.org.uk/

https://www.pensions-ombudsman.org.uk/