The AA’s proposals are serious undermining of pensions for ALL its workforce. Whether you are in the Final Salary or CARE scheme you are going to be severely hit.
The Final Salary scheme will cease and will no longer be linked to Final Salary at retirement. Whatever you pay is when the scheme closes will be the salary used for your pension calculation. The closure of the Final Salary scheme also means that your family could be worse off if you pass away, as the survivors pension will be affected by the closure of the scheme. If you are too ill to work the closure of the scheme can negatively affect the pension you would receive from ill health retirement. The AA is closing the scheme to save money and if the AA is saving money than you will have less money in retirement.
The CARE scheme is going to be seriously affected and undermined. There is an increase in contributions that will leave everyone in the scheme worse off. The scheme is going to move from RPI to CPI which will make a significant impact on your pension. The AA wants you to pay more for a smaller pension. That is less money in your pocket now for less money in your pocket at retirement so the AA can give more to their shareholders.
Read the full statement here.