The Pearson Pension Plan

If you have been notified that your role is at risk of redundancy or you have been made redundant, here some useful information about how your pension may be affected.

It is important to review and, if necessary, update your personal details as regular correspondence about your benefits will be sent to you by both post and email. If you need to update your details, you can do so quickly and easily by following the link at the bottom the page.

The benefits available to you will depend on the section of the Plan you are in; you can check which section of the Plan you are in using the link below (you will need your National Insurance number).

What happens to my pension when I leave the company?

After you leave, the pensions team will send a personal statement to your home address with your pension details.

Your benefits in the Plan will be deferred until you wish to take retirement benefits. If you were making additional voluntary contributions (AVCs), these will also stop at your date of leaving. 

You can apply to take your pension from age 55 with Company agreement, using the link below. If you retire early, your pension may be lower than if you retire at the Plan’s normal retirement age of 62. Please note, that the Government intends to increase the national minimum pension age from 55 to 57 from the 6 April 2028. 

You will also have the option to transfer your benefits at any time to another approved pension arrangement. Please read our Additional checks when you take your benefits or transfer out of the Plan page for more information. 

Frequently asked questions

• I want to transfer my benefit to another pension arrangement, what do I do?

  If you are thinking of transferring your pension pot to another pension arrangement you will need to request a transfer quotation. The quotation will include the relevant forms we need to proceed with the transfer. Please note, certain members may be required to receive independent financial advice before the transfer can go ahead. We will tell you if this applies to you when we send the quotation.

• Where can I find information about what will be available to me when I retire?

  You can find information about the retirement benefits available in your section on the section information sheet. You can check which section you are in by using the link below (you will need your National Insurance number).

  At the bottom of the page, you will also find a link to request a retirement quotation.

  You can apply to start receiving your pension from age 55 with Company agreement. The Government intends to increase the national minimum pension age from 55 to 57 from the 6 April 2028. If you retire early, your annual pension may be lower than if you retire at the Plan’s normal retirement age of 62.

• Should I get financial advice?

  We recommend that you seek independent financial advice before making any decision that affects your pension. The Trustee, the Company, and the pensions team are unable to give you financial advice.

  You can find an independent adviser in your area using MoneyHelper’s search tool on their website, you can find the link at the bottom of the page.

  Please note – you will need to pay for the advice or services that you receive from the adviser.  

• Can I pay some or all of my redundancy payment into my pension?

  Yes, you will also have the option to pay part, or all, of your redundancy payment into the Plan as Additional Voluntary Contributions (AVCs). The AVCs will be invested with Aviva and used to provide additional benefits when you retire or will be added to your transfer value. 

  Please note any AVCs will be invested in line with your current investment instruction. If you have not paid AVCs previously, it will be invested in the drawdown lifecycle option. If you do not wish to remain in the drawdown lifecycle option, you can select alternative funds by logging onto Aviva’s MyWorkplace online portal.

• If my redundancy payment is over the £30,000 tax free limit, can the excess be paid into my pension pot?

  Yes, it is possible to pay part or all your redundancy lump sum into your pension pot. The contribution will be paid into the pension by the Company and will therefore not incur tax. It also does not have any impact on the tax-free element of your redundancy payment.

  However, in certain cases there may be elements of your redundancy payment that cannot be paid in this way. If the payment is not possible, the pensions team will confirm this to you and explain your options.

• Can I speak to someone if I have further questions?

  We are happy to help with any queries you might have about the Plan and the options available to you. The pensions team are unable to give financial advice. You can book an appointment by clicking the link below.