AA Pension Scheme
Scheme information

Leaving the scheme

When you left the Scheme you would have had the option to either a:

  • Deferred pension;

  • Early retirement if you are aged 55 or over; or

  • A transfer payment.

Each of these options are explained in more detail below.

A deferred pension

This pension is calculated in the same way as a pension at normal retirement date, but is based on your final pensionable earnings and pensionable service at the date of leaving. Your deferred pension is payable from your normal retirement date.

You will continue to receive increases to your deferred pension to help protect it against inflation. The guaranteed minimum pension included in your deferred pension will be increased at a rate set by the Government.

Your pension (above your guaranteed minimum pension) will increase over the period until your normal retirement date broadly in line with inflation (as measured by the Retail Prices Index) up to a maximum of 5%.

Precise details will be given to you if you leave. 

Early retirement from deferred status

Having left the AA with an entitlement to a deferred pension, it is possible to commence payment of your pension before your normal retirement date. 

The earliest date at which your pension can commence is age 55, and your deferred pension will be reduced due to the fact that it will be paid for a longer period. 

The rate of reduction is decided by the Trustee after consulting the Actuary. 

A transfer payment

You may request to transfer the value of your deferred pension to another registered pension scheme.

The value of your deferred pension - the cash equivalent transfer value (CETV) - is calculated as the amount which needs to be invested in order to provide your future pension. It takes account of the number of years before retirement and financial conditions at the date of payment of the CETV.

You have the right, each year, to ask for the value of your current pension entitlement under the Scheme, i.e. the CETV. 

A transfer payment

You may request to transfer the value of your deferred pension to another registered pension scheme.

The value of your deferred pension - the cash equivalent transfer value (CETV) - is calculated as the amount which needs to be invested in order
to provide your future pension. It takes account of the number of years before retirement and financial conditions at the date of payment of the CETV.

You have the right, each year, to ask for the value of your current pension entitlement under the Scheme, i.e. the CETV.