How the Plan works

Windermere, Lake District

The Pearson Pension Plan (the Plan) is a pension arrangement to help you save for a more comfortable future.

The Plan is split into Defined Benefit (DB) and Defined Contribution (DC) sections. The DB sections are closed to new members, but for more information on these sections, or to check if you are a member, click here.

There are two sections in the Plan currently open to new joiners. Both sections are Defined Contribution pension arrangements.

Money Purchase 2003 Section (MP03 SectionAuto Enrolment Section (AE Section)

For further details of the benefits in these sections go to section information.

Contributions

What you payBetween 3% and 8% of Pensionable Salary. The maximum depends on your age.5% of Qualifying Earnings
What Pearson paysDouble what you pay in – between 6% and 16% of pensionable salary, depending on your age3% of Qualifying Earnings

Death in service benefits

Life cover (lump sum)Yes
4 x pensionable salary
Yes
3 x pensionable salary
Pension for your spouse/civil partner or nominated dependantYesNo
Pension for your child/renYesNo

Additional benefits

Ill-health pensionYesNo

For additional details of the benefits offered in the Plan read below.

  • The Money Purchase 2003 (MP03) Section

    You can become a member of the MP03 Section if you:

    • are aged 22 years of age or over,
    • are under State Pension age, and
    • earn over £10,000 a year (approx. £833 a month) for the tax year 2020/21

    The benefits of this section are:

    • Pearson will pay double the amount you pay every month. So, the more you pay, the more Pearson does. Click here to find out more
    • You can choose the amount you pay in each month from 3% – 8% depending on your age
    • The flexibility to change the amount you pay, between the minimum and the maximum, as often as you would like. Changes usually take effect from the next month just fill out this form
    • Life Assurance of four times pensionable salary plus a pension for your spouse/civil partner or nominated dependant, and up to four children, should you die whilst working for Pearson
    • Ill health benefits for you and your family at no extra cost to you

    To join the MP03 Section, just complete the online MP03 Section application form here. Our ‘Why Join’ guide provides an overview of the benefits and how to join.

    Click here if you are currently in the Auto Enrolment (AE) Section and want to switch to the MP03 Section to start saving more for less!

  • The Auto Enrolment (AE) Section

    You can join the Auto Enrolment (AE) Section if you are aged between 16 and 74. 

    The benefits of this section are:

    • You pay 5% and Pearson pays 3% of your Qualifying Earnings (for the tax year 2020/21 these are earnings between £6,240 – £50,000)
    • Life Assurance made up of:
      • 3 x your Pensionable Salary
      • the value of your pension pot
      • the value of any AVC’s you may have paid

    You will be automatically enrolled into the AE Section and you can switch to the Money Purchase 2003 (MP03) Section at any time, if you:

    • Are aged 22 years of age or over,
    • Are under State Pension age, and
    • Earn over £10,000 a year (approx. £833 a month) for the tax year 2020/21

    You do have the option to opt out, however, we are required to re-enrol you every three years.

    Our ‘Why Join’ guide provides an overview of the benefits and how to join the MP03 and AE Sections of the Plan.


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