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• Exam staff feel betrayed as final pension scheme is axed by ‘hypocrite’ bosses
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Exam staff feel betrayed as final pension scheme is axed by ‘hypocrite’ bosses

25 January 2011

Staff at the Assessment and Qualifications Alliance (AQA) are feeling very betrayed as their final salary pension scheme is scrapped.

Unite, the largest union in the country, branded members of the AQA’s executive board as ‘hypocrites’ as they will maintain their own  final salary pension scheme.

Management rejected money-saving proposals put forward by staff unions’ that would have enabled the final pension scheme to continue.

The axing of the scheme will affect 433 of the 1,050 staff currently employed by the country’s largest and most popular examination body, which has offices in Manchester, Harrogate and Guildford.

Unite national officer for the not for profit sector, Rachael Maskell, said: ”The axing of the scheme comes after the executive board (EB) has awarded itself a five per cent pay increase, in addition to the two per cent cost of living increase awarded to all staff in April 2010.

”In addition, the EB has made a final salary pension scheme available for the board and advertises this as a benefit when advertising posts at this level. This smacks of hypocrisy – do as we say, not as we do.

”The rationale given to staff is that the fund has a projected deficit of £17.5 million. AQA currently has asset reserves in excess of £91 million. This has left the workforce feeling undervalued and poorly treated.

”It is also the only one of the three major English awarding bodies to announce plans to scrap its final salary scheme.

”Counter proposals from staff have included a reduction in the accrual rate, a career average scheme and joining the Greater Manchester pension fund, of which some employees are members. These have all been dismissed by management.

”Despite our members’ trying very hard to find a middle course, they have been treated with contempt.“

ENDS

Notes to news editors:

For further information, please contact: Rachael Maskell on 07768 693933 and/or Unite communications officer, Shaun Noble on 07768 693940

The final salary scheme is funded as follows. Up to eight per cent is paid by the employee and 23 per cent by AQA. The proposals would see staff transferred to a direct contribution (DC) scheme with management’s contribution reduced to a maximum of nine per cent and the volatility of any funds transfer to the employee.

Staff would also be liable for a 1.6 per cent increase in national insurance payments, as the DC scheme is contracted into the state second pension (S2P).