Normal retirement age
Age 62. For Sales Representatives, age 60 for males and 65 for females for service before 17 May 1990. For service between 17 May 1990 to 31 July 1996, age 55 for both males and females. For service after 31 July 1996, age 60 for both males and females.
Please note that the government intends to increase the minimum retirement age from 55 to 57 from the 6 April 2028.
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% p.a. in respect of service up to 5 April 2009 and by 3% 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 pensioner
If there is no surviving spouse, a lump sum equal to your contributions plus interest.
Your spouse/civil partner will receive a pension of 50% of your deferred pension revalued to date of death. If you left Pearson employment before 1 September 1993 and your spouse/civil partner is more than 10 years younger than you, the pension paid to your spouse/civil partner will be reduced by 1% for each year over 10 years.
There may be scope for a pension to be payable even if there is no spouse/civil partner.
At retirement
You may exchange some pension for tax-free cash within statutory limits.
Early retirement is allowed from age 55. However, the government intends to increase the minimum retirement age from 55 to 57 from the 6 April 2028.
In certain circumstances, it may be possible for you to retire from age 50. Please ask for more information if this is of interest to you.
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 to male members if retirement is taken on or after age 60 for active members, and age 62 for deferred members, and is paid until State Pension Age. 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-GMP element of your pension will be increased each 1 January as follows:
| Pension relating to service prior to 6 April 1997 | 3% |
|---|---|
| Pension relating to service post 5 April 1997 | The lower of 5% and the rise in inflation (subject to a minimum of 3%) |
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. If you have no spouse or dependent children, the lump sum will be the balance of five years’ pension payments including increases after the date of death. Otherwise, the lump sum will be the balance of five years’ pension payments ignoring any increases.
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. If you left Pearson employment before 1 September 1993 and your spouse/civil partner is more than 10 years younger than you, the pension paid to your spouse/civil partner will be reduced by 1% for each year over 10 years.
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 total pension based on your spouse’s pension at date of death as shown in the table below. If you have more than one dependent child, the pension will be shared equally between the children:
Total children’s pension as % of spouse’s pension
| Number of dependent children | Spouse/civil partner pension payable | No spouse/civil partner pension payable |
|---|---|---|
| 1 | 50% | 100% |
| 2 | 60% | 120% |
| 3 | 70% | 140% |
| 4 or more | 80% | 160% |
An underpin applies to ensure that the total amount of the benefits payable to your spouse/civil partner and dependent children will not be less that the total amount that you would have received had you died on the 5th anniversary of when your pension started. A further lump sum will be payable to make good any shortfall.
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.
