Pearson Section

Shaftesbury, Dorset

Normal retirement age

Age 62.


During service

  • The member does not make any contributions
  • Pension builds up based on Pensionable Salary and pensionable service, using the following formula:
    • 1.9% x final pensionable salary x pensionable service, less 1/35 x basic state pension x pensionable service (limited to a max of 35 years)

On ill-health retirement

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


On death in service

The benefits are:

  • A cash sum of three times your basic annual salary
  • A spouse’s/civil partner’s pension of 50% of the pension you would have received if you had remained in service until age 62, based on your final pensionable salary at the date of your death
  • If you are aged over 24 at the date of death, each of your dependent children (up to a maximum of five children) will be eligible to a pension of 10% of the pension you would have received if you stayed in service until age 62, based on your final pensionable salary at the date of death.

The benefits on death in service after normal retirement age may differ from the above.


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 and by a minimum of 3% each year in respect of service up to 5 April 2009 and by 3% each year 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 lump sum of five times your deferred pension revalued to the date of death.

Your spouse/civil partner will receive a pension of two-thirds of your deferred pension revalued to date of death.

Each of your dependent children (up to a maximum of five children) will be eligible for a pension based on 10% of your deferred pension revalued to date of death.


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.

A temporary supplementary pension is payable until State Pension Age to male members whose pension commences on or after age 61. It also applies to female members in respect of their service after 16 May 1990. A temporary supplementary pension is not payable where the member retired early on grounds of ill-health.


Pension increases

Once your pension comes into payment, the non-Guaranteed Minimum Pension (GMP) element of your pension relating to service before 6 April 1997 will be increased each 1st January by the lower of 3% and the rise in inflation. Pension relating to service after 5 April 1997 is increased by the lower of 5% and the rise in inflation. If you left service before 1 August 1988, your entire non- GMP pension will increase by the lower of 5% and the rise in inflation.

The Plan will increase GMP in line with the section increases above for women under age 60 and men under age 65.

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) for women over age 60 and men over age 65.


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 two-thirds 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.

Each of your dependent children (up to a maximum of five children) will be eligible for a pension based on 10% of your  pension at date of death, but calculated before any reduction if you took tax-free cash at retirement or chose an optional dependant’s pension.


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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