How is my pension calculated?

Your pension will be calculated when you leave the Plan; whether you retire, leave Pearson or opt out. It is 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 DB sections within the Plan.

To find out what definitions apply to you, go to My DB section



What if I work part-time?

If you work part-time, the formula used to calculate your pension will be slightly different. This is because your pensionable service is worked out based on your part-time hours, but will still use the full-time equivalent of your pay.

Max is a member of the Final Pay Section. He has 20 years' full-time service and 10 years' part-time, working two and a half days a week.



Are my contributions taxed?

As an active member of the Plan, any contributions you make are tax-free providing you are under HMRC’s Annual Allowance (AA). The AA is the limit on pension contributions you can make, tax-free, in any tax year. The AA for the 2019/20 tax year is £40,000; for higher earners the AA may be reduced, to a minimum of £10,000.

If you think you may be affected by the AA, please speak to an independent financial adviser. To find an adviser in your area visit directory.moneyadviceservice.org.uk



State Pension
The current State Pension is £168.60 a week for the 2019/20 tax year (for those with at least 35 years of full National Insurance contributions). However, if you have been contracted out of the State Pension at any time, e.g. as a contracted out member of the Plan or any other pension scheme, the amount of State Pension you receive may be reduced in certain circumstances. You can receive an estimate of your State Pension from www.gov.uk/check-state-pension



Discounts

Aviva is offering additional discounts to its online premiums for car, home and travel insurance to new Aviva customers.

To find out more go to www.aviva.co.uk/affinities/pearson where you can find details of the products available and any eligibility criteria that may apply.

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