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Extel Section

Holy Island Causeway, Lindisfarne

Normal retirement age

Age 62, subject to the Plan Rules*

* if you left the Plan before the 1 February 1995 your normal retirement age may differ, please contact the Pensions team for further information.

Deferred pension increase

The non-Guaranteed Minimum Pension (GMP) element of the deferred pension increases in line with inflation up to a maximum of 5% each year in respect of service up to 5 April 2009 and up to 2.5% p.a. in respect of service after that date. The GMP element increases at a fixed rate depending on your date of leaving.

On death as a deferred member

A refund of your contributions with interest to each 31 December, less the actuarial cost of the spouse’s GMP.

Your spouse/civil partner will receive a pension of 50% of your deferred pension revalued to date of death. If your spouse/civil partner is more than 10 years younger than you, there is a reduction of 2.5% for every year above 10. There may be scope for a pension to be payable even if there is no spouse/civil partner.

At retirement

You may exchange some pension for tax-free cash within statutory limits.

Early retirement possible from age 55 subject to consent from the Trustee. Please note that the government intends to increase the minimum retirement age from 55 to 57 from the 6 April 2028.

A reduction will be made to take account of the fact that you will be receiving your pension for longer.

Pension increases

Once your pension comes into payment, the non-GMP element of your pension will be increased each 1 January by the rise in inflation.

Before you reach GMP age (60 for women and 65 for men), the Plan will increase any GMP in line with the section increases above.

After you reach GMP age, post 1988 GMP will increase by the lower of 3% per annum and the annual rise in inflation (currently measured using the Consumer Prices Index).

Death in retirement

If you are receiving a Plan pension and die within five years of retiring, your dependants will receive a cash sum. This will be the balance of five years’ pension payments (ignoring any future increases after the date of death).

If you die after retirement your spouse/civil partner will receive a pension for life of 50% of your pension, at the date of death, but calculated before any reduction if you took tax-free cash at retirement or chose an optional dependant’s pension.

If your spouse/civil partner is more than 10 years younger than you, there is a reduction of 2.5% for every year above 10.

Your dependent children will be eligible for a total pension based on your pension at date of death (but calculated before any reduction for tax-free cash at retirement) as shown in the table below. The total pension will be payable to the dependent children in equal shares.

Number of dependent childrenTotal children’s pension payable (% of member pension)
3 or more50%

Please note the Rules of the Plan are the binding documents of the Plan and will always override the information provided in this website. For deferred members the Plan Rules at the date of leaving are relevant.

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