The Pearson Pension Plan

Here is all the information you need to know regarding your Plan benefits and what will happen in the unfortunate event of your death.  

The death benefits will vary depending on your section. If you are not sure which section of the Plan that you are in, you can check on the Plan’s website using the link below.

The benefits payable from the plan will depend on your member status:

• Death in service – you are still in employment with Pearson and are contributing to the Plan
• Death in deferment – you have left employment but have yet to take your pension benefits
• Death of a pensioner – you are in receipt of your pension from the Plan
• Death of a dependant – you are in receipt of a dependant’s pension from the Plan, if a dependant dies all pension payments will cease and no further benefits are payable.

What types of benefits could be payable?

• A lump sum may be payable from the Plan when you die. The Trustee will decide who the lump sum is paid to and will be guided by any expression of wish form that you have completed. We recommend that you update this on a regular basis even if your circumstances have not changed. The lump sum is paid outside of your estate and is therefore not included when assessing any liability for Inheritance Tax.
• A monthly pension to your spouse/civil partner or in certain circumstances dependants.

• Death benefits for member of the Money Purchase 2003 (MP03) Section

  Death in service benefits

  • A tax-free lump sum of 4 x your Pensionable Salary
  • A spouse’s, civil partner’s or nominated dependant’s pension of 33% of your pensionable salary
  • Children’s pensions (if applicable) of 8.5% of your pensionable salary for each child (up to a maximum of four) to age 18 or 23 if in full time education
  • A lump sum equal to the proceeds of any Additional Voluntary Contributions (AVCs)
  • If you do not have a spouse, civil partner, nominated dependant or any other dependant, a lump sum equal to the balance of your pension pot may be payable as the Trustee considers appropriate.

  Death in deferment benefits

  Your spouse, civil partner or nominated dependant will receive any contracted-out benefits to which they are entitled. The cost of this benefit is met from your pension pot.

  If your pension pot is sufficient, after the cost of providing any contracted-out benefits, a lump sum is payable equal to your own basic contributions paid (including any paid through Salary Exchange) and transferred to the Plan plus interest. Any balance of your pension pot is used to provide benefits (including a lump sum) for one or more of your spouse/civil partner/nominated dependant as the Trustee considers appropriate. Additional Voluntary Contributions (AVCs), a lump sum equal to the proceeds of your AVCs, will also be payable as the Trustee considers appropriate.

  If you do not have dependants, a lump sum equal to the balance of your pension pot may still be payable as the Trustee considers appropriate.

• Death benefits for member of the Auto Enrolment (AE) Section

  Death in service benefits

  There is a lump sum payable, made up of:

  • 3 x your pensionable salary
  • The value of your pension pot
  • The value of any AVCs you may have paid

  Death in deferment

  Your pension pot will be used to provide a lump sum of your own contributions (including any paid through Salary Exchange), plus interest. Any balance of your pension pot is used to provide benefits (including a lump sum) for your dependants.

  If you do not have a spouse, civil partner or nominated dependants, a lump sum equal to the balance of your pension pot may still be payable as the Trustee considers appropriate.

• How do I report a death?
  • Reporting a death online – you can report the death of a member using the online form on our website, you will find the link to the form below
  • Contact the pension helpline – (Freephone) 0800 7811378 (+44 203 7888562 if calling from outside the UK)
    Phone lines are open Monday – Friday 8.30am – 5.30pm, excluding bank holidays
  • Contact the pension team by email – pensions.helpline@pearsonpensions.com

  If there are financial dependants, we will need to be provided with the following information.

  • Their birth certificates
  • Their marriage certificate (If applicable)
  • If necessary, joint bills such as utility, mortgage or bank statements.

  Please note that any lump sum or pension will be paid at the discretion of the Trustee.