The Pearson Pension Plan

Here we have provided some useful information and things to consider if you are expecting or have recently had a child.

This includes:

• Information on family leave and pay
• Adding a child to your list of beneficiaries
• Tips for budgeting for a newborn

What are the different types of family leave?

Family leave is a term used throughout this page and includes the following:

• Maternity leave

  Eligible employees are entitled to 52 weeks statutory maternity leave. The earliest that maternity leave can start is 11 weeks before the baby is due. If the baby is born early, the maternity leave will start from the day they are born.  

• Paternity leave

  Eligible employees are entitled to 2 weeks of paid statutory paternity leave, which must be taken in consecutive weeks. Paternity leave can start from the day the baby is born and must end within 56 days of the birth.

• Adoption leave

  This has a similar entitlement to maternity leave. Eligible employees must notify Pearson 15 weeks before the adoption starts, and the child joins their family. GOV.UK has a guide to calculate when this date will be as well as the amount of family leave an employee will be entitled to. A link to the GOV.UK website is included below.

• Shared parental leave

  This is different to the above options. It allows parents to take time off together or in turns. In total parents can share up to 52 weeks parental leave, including 37 weeks of the statutory paid leave. The terms of shared parental leave must be agreed in advance with Pearson. 

Before an employee goes on family leave, they will need to agree the date they expect to return to work.

If you would like additional information on each type of family leave, there are links to MoneyHelper’s sections included at the bottom of the page. 

Please note that before an employee goes on family leave, they will need to agree the date they expect to return to work. 

Do I still pay pension contributions while on family leave?

• Pension contributions during family leave

  Your pension contributions will continue at the same rate during any period of paid family leave. Pearson will also continue to pay an employer contribution during this period.

  If you decide to take additional unpaid family leave your contributions and Pearson’s will stop but you will remain a member of the Plan.

• Returning to work

  If you return to work from unpaid family leave, you will have the option to pay any missing contributions.

  If you do not return to work within the time limit agreed with Pearson, your date of leaving for pension purposes will be the agreed date. Alternatively, it will be the date you told Pearson you would not be returning to work, if earlier.

Budgeting for a baby

MoneyHelper has a useful tool that takes into consideration your budget and will help you to prioritise what you need to buy. A link to the tool is included at the bottom of the page.

You can also find lots of pre-owned baby items in your area by using sites such as Gumtree and Facebook marketplace.

The budgeting section on the Information Centre has helpful tips and guides that can help you factor in the costs of having a child too.  

Tax-free childcare support

This is a government scheme to help working parents afford childcare such as nurseries, registered childminders, after-school clubs and more. You will be able to claim up to £2,000 a year for each child (£4,000 if your child is disabled). The scheme works by every time you pay in £8 the government will add £2. We have included a link below for further reading and to check eligibility.

Frequently asked questions

• How can I add a new beneficiary?

  If you would like to add a new dependant to your record, please click on the links below. There are two forms to consider.

  • Expression of wish form – In certain circumstances, such as if you die before taking your benefit, a lump sum may be payable from the Plan and the Trustee will take this form into consideration.
  • Nominated dependant form – In the event of your death, a pension may be payable from the Plan. This is usually paid to a spouse or civil partner. However, the Trustee will consider paying a pension to anyone who might have been financially dependent on you too. Please note the Trustee is not legally bound by this form.
• What happens if you need to retire due to ill-health during family leave?

  If you must retire due to ill-health during a period of family leave or unpaid leave, your benefits will not be affected. You continue to be covered for any ill-health benefits based on your full rate of pensionable salary.

  Ill health benefits vary depending on the section of the plan you are in, you can find full details on the section information sheet for your section. You can check which section you are in and find your section information sheet using the link below.

• Can I pay Additional Voluntary Contributions (AVCs) whilst on family leave?

  You can continue to pay AVCs during paid family leave.

• Will my children receive a pension benefit if I die?

  Depending on the section of the Plan you are in there may be a dependent’s pension. If you are not sure what section of the Plan that you are in, you can check here.

  The Money Purchase 2003 (MP03) Section has the following benefits payable depending on your employment status.

  • If you die whilst still working for Pearson then your child/children (maximum four) will each be entitled to a pension of 8.5% of your pensionable salary (if you do not have a spouse this will be doubled).
  • If you die after leaving employment with Pearson there may be benefits payable if you are not married or in a civil partnership.

  The Auto-Enrolment (AE) section does not offer a pension if you die whilst still working for Pearson, but your beneficiaries may receive a lump sum. If you are an active member of the AE section, you can request to switch to the MP03 section. The switch form can be found via MyBenefits.

  If you are a member of one of our Defined Benefit (DB) sections, then in the event of your death, the Trustee will consider a child under the age of 18 for a dependent’s pension (or 23 if still in full-time education).