What if

Death in service benefits

What benefits are paid if I die in service?

It’s not something we like to think about, but how would your family cope financially if you passed away? Being in the MP03 Section of The Pearson Pension Plan, if you die whilst working for Pearson, your loved ones would benefit from:

  • A lump sum of four times your pensionable salary; and
  • A spouse's, civil partner's or nominated dependant's pension of 33% of your pensionable salary; and
  • Children's pensions (if applicable) of 8.5% of your pensionable salary for each child (up to a maximum of four).

To help the Trustee decide who receives these benefits you must make sure that you complete the following forms:

  • An expression of wish form – this form lets the Trustee know who you have nominated to receive the lump sum benefit.
  • If you are not married or in a civil partnership, a nominated dependant form if applicable – this form lets the Trustee know whom you have selected as a nominated dependant to receive up to 33% of your pensionable salary.

Please refer to the AE Section booklet for further information on the benefits you are eligible to receive.

If you are not in the Plan, then the only benefit payable would be a lump sum of two times your salary.

How much is the lump sum?
If you are a member of the MP03 Section of the Plan the lump sum will be four times your pensionable salary paid by the Trustee of the Plan. If you are a member of the AE Section of the Plan you still receive a lump sum but it is less generous. 

Who will receive the lump sum?

The Trustee has absolute discretion in deciding to whom to pay the lump sum to. This means money can be paid out as quickly as possible without attracting any inheritance tax. It is important that you tell the Trustee who you would like to receive the benefit. You can name one or more beneficiaries by completing an expression of wish form. Although the form is not legally binding, the Trustee will take your wishes into consideration.

Remember to update your expression of wish form whenever your personal circumstances change.

What pension is paid to my spouse or civil partner?

Any pension payable to your spouse/civil partner is paid in accordance with the Rules of your Plan section. If you joined on or after 1 April 1995, this is normally 33% of your pensionable salary as a member of the MP03 Section of the Plan.

I live with someone, can they receive a pension?
A pension may be paid to a nominated dependant who, in the opinion of the Trustee, must be financially dependent on you at the time of your death.

If you are a member of the MP03 Section you can nominate a common-law husband/wife or a partner of the same sex by completing a nominated dependant form.

This pension is normally the same amount as that paid to a spouse/civil partner and will continue for life. However, if your nominated dependant is more than 10 years younger than you, the Trustee may reduce the pension.

Will a pension be payable to my children?
If you joined on or after 1 April 1995 each of your dependent children, up to a maximum of four, will normally receive a pension of 8.5% of your pensionable salary at the time of your death. This pension will be payable up to age 18, or up to age 23 if the child is in full-time education or vocational training, or for so long as the child is permanently disabled.

What happens to my additional voluntary contributions (AVCS)?
If you die before retirement, your AVCs will be added to the cash sum provided by the Plan.

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.