What happens if I start working part-time?

Royal Mile, Edinburgh, Scotland

If you decide to work part-time, both your pension contributions and Pearson’s contributions will be based on your new salary.

  • How will my pension contributions be affected if I move to part-time employment?

    If your salary changes because of a change in working hours, the contributions will be revised at the date of the change.

    For example:

    Val’s full-time Pensionable Salary was £36,000 a year. She moved to a three day week on a new annual salary of £21,600.

    Salary of
    £36,000
    Salary of
    £21,600
    Val’s monthly
    contributions:
    £150£90
    Pearson’s
    contributions:
    £300£180
    Total:£450£270

    In summary…
    Based on her contribution rate of 5%, her monthly pension contributions reduced from £150 to £90. As a member of the MP03 section of the Plan, Pearson’s double matching contributions also reduced from £300 per month to £180 per month.

  • How will my pension benefits be affected?

    If you are a member of either the MP03 and AE Sections, your benefits at retirement depend on how much money has built up in your individual Pension Pot in the Plan. The value of your Pension Pot at retirement will be lower if you move from full-time to part-time working, simply because your contributions and those of Pearson will be lower because you are earning less.

    Defined benefit members
    If you are a member of one of the Defined benefit (DB) sections of the Plan, your benefits at retirement will be adjusted to take into account the period of part-time service.

    If your salary changes because of a change in working hours, the contributions will be revised at the date of the change.

    For example:

    John is a member of the Final Pay Section. He has 20 years full-time service and 10 years as 50% job-share.

    At retirement, his pension is calculated using the equivalent full-time salary for his job, but his 10 years part-time service is adjusted to count as five years of pensionable service, as follows:

    John’s part-time salary
    at retirement:
    £12,000
    a year
    The equivalent
    full-time salary:
    £24,000
    a year
    Part-time pensionable service
    calculated as 10 years x 50%:
    5
    years
    Full-time pensionable service:20
    years
    Pension calculated as
    25 years x 1/60th x £24,000
    £10,000
    a year

    If John had remained in full-time service until retirement, he would have had 30 years pensionable service and his pension would have been calculated as:

    Pension calculated as
    30 years x 1/60th x £24,000
    £12,000
    a year

    In summary…
    John’s 10 years as 50% job-share has therefore reduced his pension from £12,000 a year to £10,000 a year.

  • Will my death in service benefits be affected?

    The lump sum and any pensions payable to your dependants if you die in service are normally based on your salary at date of death. If you are in part-time employment at the date of death, your part-time salary will be used to calculate these benefits.


You could do this next


Was this page helpful?

Contact us

How the Plan is run

News