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Final Pay Section

Normal retirement age

Age 62.


During service

  • Contributions: member pays 5% of Pensionable Salary
  • Pension builds up based on final pensionable salary and pensionable service, using the following formula:
    • 1/60 x final pensionable salary x pensionable service

On ill-health retirement

Ill health retirement pensions are based on the pension you would have received if you had remained in service until your normal retirement date, but based on your final pensionable salary at the date of your retirement.


On death in service

The benefits are:

  • A lump sum of four times pensionable salary, plus the proceeds of any Additional Voluntary Contributions (AVCs)
  • A spouse’s/civil partner’s/nominated dependant’s pension of 33% of pensionable salary. There may be scope for a pension to be payable even if there is no spouse/civil partner.
  • Children’s pensions of 8.5% of pensionable salary x the number of dependent children (maximum four children). This is doubled if there is no spouse/civil partner/ nominated dependant pension payable. The Trustee decides how the children’s pension will be shared between dependent children
  • If you die in service having opted out of the Plan on or after normal retirement date you will be eligible for a lump sum of two times pensionable salary and benefits on death in retirement as if your pension had started on the day before your death.

On leaving

You have two options:

  1. Leave your pensions benefits with the Plan. You are known as a
    deferred member, or;
  2. Transfer the value of your deferred pension to another registered
    pension arrangement

Deferred pension increase

The non-Guaranteed Minimum Pension (GMP) element of the deferred pension increases currently 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 basic contributions paid and transferred to the Plan with interest, plus the proceeds of any Additional Voluntary Contributions.

Your spouse/civil partner/nominated dependant will receive a pension of 50% of your deferred pension revalued to date of death. There may be scope for a pension to be payable even if there is no spouse/civil partner.

Your dependent children will be eligible for a pension of 12.5% of your pension which would have been in payment at the date of death x the number of dependent children  (up to a maximum of four children). This is doubled if there is no spouse/civil partner/ nominated dependant pension payable. The Trustee decides how the children’s pension will be shared between dependent children.


At retirement

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

Early retirement possible from age 55 subject to Company consent.
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 on 1 January by the lower of 5% and the rise in inflation each year.

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).

Your spouse/civil partner/nominated dependant 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. There may be scope for a pension to be payable even if there is no spouse/civil partner.

Your dependent children will be eligible for a pension of 12.5% of your pension, calculated before any reduction if you took tax-free cash at retirement times the number of dependent children (up to a maximum of four children). This is doubled if there is no spouse/civil partner/nominated dependent pension payable. The Trustee decides how the children’s pension will be shared between dependent children.


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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