Your Benefit Statement – Explained

Keswick, Cumbria

Understanding your benefits

You may have received a pension benefit statement from The Pearson Pension Plan (the Plan).

This includes any Defined Benefit (DB), Defined Contribution (DC) or Additional Voluntary Contributions (AVCs) benefits you hold in the Plan. 

The statements help to give you an idea of what benefits you may have when you reach your normal or selected retirement age.

The Trustee, in line with regulation, has produced the following documents. Just click on each line to read more: 


Your pension benefit statement explained

To get the most out of your statement simply click on the links below. You will find examples of the statement pages. Simply put your mouse over the highlighted areas to see an explanation of the terms used.

  • If you are a Defined Benefit member (Final Pay, PCSPS-Classic, PCSPS-Premium, TQ-Classic and TQ-Premium/Plus Sections) – click here
    Normal retirement age Reference number Pensionable salary Pension if you remain in pensionable service until your normal retirement age Pension if you had taken early retirement with the Company’s consent on 5 April 2021 X% of the Lifetime Allowance Pension built up to date, payable at normal retirement date, if you had left the Company on 5 April 2021 A lump sum of A spouse’s/civil partner’s pension of Children’s pensions for each child (maximum of 4) of On your death in retirement, your spouse/civil partner will be paid a pension of
  • If you are a Money Purchase 2003 (MP03) Section member – click here
    Scheme/member number Selected retirement age Value of pension pot as at 5 April 2021 Value of pension pot as at 5 April 2020 X% of the Lifetime Allowance From 6 April 2020 to 5 April 2021 Scheme pays deduction Pension sharing upon divorce Your projected pension pot at retirement is Which could buy you an estimate taxable yearly pension of

    What assumptions have been made?

    You can view the full assumptions used to calculate your pension here. The figures are shown in ‘today’s prices’ and allow for how the price of goods and services might increase in future.

    What actually happens may be different from what we have assumed. So, these figures do not come with a guarantee. We cannot promise this is the actual amount of money you, or anyone else who benefits from your Plan membership, will get. You could get less or more than this amount. These figures are a guide to help you plan.

  • If you are an Auto Enrolment (AE) Section member – click here
    Scheme/member number Selected retirement age Value of pension pot as at 5 April 2021 Value of pension pot as at 5 April 2020 X% of the Lifetime Allowance From 6 April 2020 to 5 April 2021 Scheme pays deduction Pension sharing upon divorce Your projected pension pot at retirement is Which could buy you an estimate taxable yearly pension of

    What assumptions have been made?

    You can view the full assumptions used to calculate your pension here. The figures are shown in ‘today’s prices’ and allow for how the price of goods and services might increase in future.

    What actually happens may be different from what we have assumed. So, these figures do not come with a guarantee. We cannot promise this is the actual amount of money you, or anyone else who benefits from your Plan membership, will get. You could get less or more than this amount. These figures are a guide to help you plan.

  • If you have Additional Voluntary Contributions – click here
    Scheme/member number Selected retirement age Value of pension pot as at 5 April 2021 Value of pension pot as at 5 April 2020 X% of the Lifetime Allowance From 6 April 2020 to 5 April 2021 Scheme pays deduction Pension sharing upon divorce Your projected pension pot at retirement is Which could buy you an estimate taxable yearly pension of

    What assumptions have been made?

    You can view the full assumptions used to calculate your pension here. The figures are shown in ‘today’s prices’ and allow for how the price of goods and services might increase in future.

    What actually happens may be different from what we have assumed. So, these figures do not come with a guarantee. We cannot promise this is the actual amount of money you, or anyone else who benefits from your Plan membership, will get. You could get less or more than this amount. These figures are a guide to help you plan.


Frequently asked questions

We have put together some common questions we are asked about the pensions benefit statements.

  • What period does the benefit statement cover?

    The benefit statement year falls between the tax year dates i.e. 6 April to 5 April every year.

  • Who gets a benefit statement?

    You will receive a benefit statement if you:

    • Are an active DB member where you are still employed and making contributions to the Plan.
    • Have a DC pension pot in either the MP03 or AE Sections.
    • Have an AVC pension pot(s)

    If you are a deferred DB member, you will not receive a statement for your DB benefits but you will still receive a statement for any AVCs.

    If you have a DC pension pot (in MP03, AE or AVCs) and you are less than 12 months from your selected retirement age, a projected benefit will not be shown on your statement.

    If you are less than 12 months from retirement, we are offering a free one to one guidance call with financial specialists, Wealth at Work. The number to call is 0800 0931462.

  • How can I increase my pension pot?

    Before doing anything, it is worth thinking about how much money you will need when you stop working. Take a look at the Aviva retirement planner to give you an idea.

    If you are an active employee, there are many ways to increase how much money you save. Take a look at the Ways you can save more page.

    If you are in the DB Section, you cannot change the amount that you pay but you can save more in Additional Voluntary Contributions (AVCs). 

  • How do I change my retirement date?

    If you are in the MP03 or AE Sections, you can change your selected retirement date. 

    To change this, all you need to do is complete a Selected retirement age form.

    If you are a DB member, you are unable to change your normal retirement date. For more information on early or late retirement, see our section information sheets here.

  • Where am I invested and what charges do I pay?

    Why not take a look and see where you are invested? It’s good to monitor this yourself and you can decide if you would like to change anything with your investments.

    The charges that you pay are linked to your investment choices. The charges can be found here.

  • How do I change my investments?

    Firstly, it is worth understanding how your money grows. If you then decide to make any changes to your investment options, visit the Aviva membersite through our website here.

  • What about other income in retirement?

    Other than your Pearson pension there is also the State Pension that can help boost your income in retirement. You can check when you are able to take your State Pension and how much you might be entitled to online.

  • Have you thought about ‘old’ pension pots?

    Have you considered combining pensions from previous employers? You may have had other jobs before Pearson, and may have therefore lost track of some pension pots. You can track them down online using the Pension Tracing Service.

    If you work for Pearson and would like to investigate whether you can transfer other pension benefits into the Plan, click here and complete the form.

    It is important that you consider taking independent financial advice before you transfer your benefits so you understand how the benefits provided by the Plan may differ from the benefits in your other pension arrangements.

  • Do I need to take financial advice yet?

    We would recommend that you seek independent financial advice when you are deciding what your options are nearer to retirement. However, if you decide to make a large transfer between a DB and DC pension arrangement of £30,000 or more, you will need to prove that you have received independent financial advice. The Money Advice Service can help you to find an independent adviser in your area.


Top tips to get the most out of your pension

  1. Make sure you know how to identify a scammer so you can be Scamsmart. You can find tips and information on our website here.
  2. Ensure all your personal information is up to date. Just complete our online form if any of your personal details change.
  3. If you are a member of the MP03 or AE Sections, get into the habit of checking your pension pot value at least once a month. With everything being online, it is easier to check this regularly.
  4. If you are an active member of the AE Section, consider switching to the MP03 Section where Pearson will pay more into your pot. Find out more on our website by clicking here.
  5. Make sure you complete an expression of wish form if you have not already or if your circumstances have changed.
  6. Read your pension benefit statement carefully – it can help you make decisions about whether you want to amend your investments or contribute more.
  7. Consider taking independent financial advice if you are near retirement or if you want to transfer your benefits, The Money Advice Service can help you to find an independent adviser in your area.
  8. If you’d like to find about more about the Plan or about pensions in general, visit the Learning Zone on our website by clicking here.

Still have questions?

The easiest way to contact us is by using our website here.  Alternatively, you can email us at: pensions.helpline@pearson.com. You can also call us on 0800 7811378, please select Option 4.


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