What if

I am made redundant

What are my options?

You will 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.

As a member of the MP03 Section, your Pension Pot will remain invested in the Plan until you retire. In addition, you can transfer your Pension Pot to another registered pension arrangement. If you decide to transfer, we will pay the full value of your Pension Pot to your chosen pension arrangement.

You may receive your pension at any time from age 55, provided Pearson agrees. Also, if you are a member of the MP03 Section, your Pension Pot has to be above a minimum value because that section was contracted-out of the State Second Pension up to 5 April 2016. Details of your pension on retirement can be provided on request.

The pensions team will write to you at your home address after you have left, providing you with a personal statement setting out your pension options and the relevant figures to enable you to make your decision.

What benefits are payable if I die after leaving but before retirement?
Although death in service benefits cease at your date of leaving Pearson, if you leave your benefits in the Plan, your Pension Pot will be used to provide a lump sum of your own contributions plus interest and any balance will be used to purchase pensions for your dependants.

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.
  • If you chose to take a refund of your contributions, the value of your AVCs would be refunded less tax.

Should I obtain financial advice?

Yes, 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.