Pearson Pensions

The Pearson Pension Plan isn't a startup story; it's a narrative of corporate stewardship. Its origins trace back to 1944, with the establishment of a retirement plan for employees of Pearson Inc.. The modern iteration of the plan is managed by a trustee company, Pearson Pension Trustee Limited, which oversees the arrangement in the interest of its beneficiaries. This structure ensures the day-to-day administration is handled by a dedicated pensions team. Over the decades, the plan has evolved through various mergers and structural changes. A key moment occurred in November 1998 when the Addison Wesley Longman Retirement Plan was merged into the Pearson Inc. Pension Plan. This was followed by a shift in 2006, when most sections of the plan were closed to new entrants, signaling a strategic change in how future retirement benefits would be structured. The plan primarily serves employees from Pearson's diverse divisions, including Pearson Education and formerly the Financial Times (FT) and Penguin. A significant chapter in the plan's journey involves a series of de-risking strategies. In 2017, the plan's trustee executed the largest 'buy-in' of the year, a £1.2 billion transaction split between Aviva and Legal & General. This was followed by another substantial £500 million buy-in with Legal & General in 2019. These buy-ins are essentially insurance policies that cover the pension payments for a portion of the plan's members, transferring longevity risk from Pearson to the insurers and providing greater security for members' benefits.