What if

I am made redundant?

What happens to my pension if I am made redundant?

If you are made redundant you will be treated as if you have left the Plan and your pension would be calculated using this formula:

Pensionable pay x pensionable service x accrual rate


The definitions of pensionable pay and pensionable service are different in each of the defined benefit sections within the Plan. The definitions for your section are given on the page My DB section.

You will then have the option of either leaving your benefits in the Plan until retirement or, at any time in the future, transferring the value of your benefits to another registered pension arrangement. If your total pension value is more than £30,000 then by law you now have to provide evidence of financial advice being taken before you will be allowed to transfer.

What benefits are payable if I die after leaving but before retirement?


Although death in service benefits cease at your date of leaving, if you leave your benefits in the Plan, a pension will normally be payable to your spouse or civil partner, together with a refund of your own contributions. These benefits will be calculated in accordance with the Rules of your Plan section. Remember to keep your expression of wish form up to date and consider whether you need to complete a new form if your personal circumstances change.
What happens to my additional voluntary contributions (AVCs)?

If you were making AVCs, these would stop at your date of leaving. The AVCs would be treated as follows:

  • If you chose to transfer to another pension arrangement, the value of your AVCs would also be transferred.
  • If you chose to leave your pension benefits in the Plan, your AVCs would remain invested in the Plan.

Should I obtain financial advice?


The Trustee recommends that you seek independent financial advice before making any decision that affects your pension. Neither the Trustee, Pearson, nor the pensions team are allowed to give any financial advice.

Pension Wise is a free and impartial guidance service set up by the government, which aims to help you understand your choices and how they work. You can find out more on the Pension Wise website (www.pensionwise.gov.uk). You can also visit the Money Advice Service at www.moneyadviceservice.org.uk to find an independent financial adviser in your area.
Still have questions?

If you have any questions then please go to the contact us page on the website for different ways to get in touch.


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