Skip to content

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 find out which section you are in for more information on these sections, or to check if you are a member.

There are two sections in the Plan currently open to new joiners, Money Purchase 2003 Section (MP03 Section) and Auto Enrolment Section (AE Section). Both sections are Defined Contribution pension arrangements.

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

Contributions

Money Purchase 2003 Section (MP03 Section)Auto Enrolment Section (AE Section)
What you pay*Between 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

*You can choose to pay your pension contribution through Salary Exchange. For more information, please read the Salary Exchange Guide - This link opens in a new browser window.

Death in service benefits

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

Money Purchase 2003 Section (MP03 Section)Auto Enrolment Section (AE Section)
Ill-health pensionYesNo

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

  • The Money Purchase 2003 (MP03) Section

    You can join the MP03 Section if you are aged between 16 and 74.

    The benefits of this section are:

    To join the MP03 Section, go to the benefits selection section of Pearson Benefits - This link opens in a new browser window.

  • 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 2023/24 these are earnings between £6,240 – £50,270)
    • Your pension contributions can be paid through Salary Exchange. For more information, please read the Salary Exchange Guide - This link opens in a new browser window
    • 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 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 2023/24

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

    Our ‘Why Join’ (PDF 1MB), guide provides an overview of the benefits of both the MP03 and AE Sections of the Plan.


You could do this next


Was this page helpful?

Back to top

Contact us

How the Plan is run

News

    Step 1

    Welcome to the Pearson Pensions Website feedback form. Did you find what you were looking for?

    Step 2

    Was it easy to find?

    Step 3

    Did you complete a form today?

    Step 4

    Thank you for your feedback!

    It will help us to continually improve the website.

    You can close this window.