What benefits are paid if I die in service?
As a Pearson employee, benefits are payable to your loved ones if you die whilst working for the company. The benefits available depend on if you are a member of the Plan and which section you are in.
Please select the relevant section to you below to find out these benefits:
- Money Purchase 2003 Section
- A tax-free lump sum of 4 x your Pensionable Salary
- A spouse’s, civil partner’s or nominated dependant’s pension of 33% of your pensionable salary
- Children’s pensions (if applicable) of 8.5% of your pensionable salary for each child (up to a maximum of four) to age 18 or 23 if in full time education
- A lump sum equal to the proceeds of any Additional Voluntary Contributions (AVCs)
- Auto Enrolment (AE) Section
If you are a member of the AE Section then there would be a lump sum payable, made up of:
- 3 x your pensionable salary
- The value of your Pension pot
- The value of any AVC’s you may have paid
- Defined benefit section members
If you are a member of one of the Plan’s Defined benefit (DB) sections, you can find details of your death benefits on the Find out which section you are in page .
To help the Trustee decide who should receive any lump sum benefit, please complete an Expression of wish form so they are aware of your wishes.
- Not a member of the Plan?
If you are not in the Plan, then the only benefit payable would be a lump sum of 2 x your Pensionable Salary.
- Who will receive the lump sum?
The Trustee has absolute discretion in deciding who should receive the lump sum. This means money can be paid out as quickly as possible without attracting any inheritance tax. It is important that you tell the Trustee who you would like to receive the benefit. You can name one or more beneficiaries by completing an Expression of wish form. Although the form is not legally binding, the Trustee will take your wishes into consideration.
Remember to update your Expression of wish form whenever your personal circumstances change.
- I live with someone; can they receive a pension?
If you are a member of either the Final Pay Section or the MP03 Section, a pension may be paid to a nominated dependant who, in the opinion of the Trustee, must be financially dependent on you at the time of your death. You can nominate a common-law husband/wife or a partner of the same sex by completing a nominated dependant form.
This pension is normally the same amount as that paid to a spouse/civil partner and will continue for life. However, if your nominated dependant is more than 10 years younger than you, the Trustee may reduce the pension.
- What happens to my additional voluntary contributions (AVCS)?
If you die before retirement, your AVCs will be added to the cash sum provided by the Plan.
