Short-Term Disability (STD) Salary Continuation Policy

Revised: January, 2013

STD salary continuation is intended to continue providing all or part of your pay if you are unable to perform your job because of a non-work related injury or illness (including pregnancy or childbirth). This coverage is provided at no cost to you.

  1. ELIGIBILITY

This policy applies to eligible employees of Pearson Inc., and the affiliated operating companies of Pearson Inc. that participate in this Pearson-sponsored policy. This policy does not apply to contractors, vendors or individuals employed by temporary agencies assigned to work at Pearson.

If the provisions in this policy and those of the collective bargaining agreement differ, the collective bargaining agreement prevails for those employees covered by it.

Employees in the following employment categories are eligible for salary continuation benefits after satisfying the applicable waiting period:

All Operating Companies (30-day waiting period)

  • Regular Full-time
  • Regular Short-hour

Individuals working in NY, NJ, CA, HI, PR and RI in the following categories (in addition to those categories listed above) may be eligible for state mandated benefits (see Section V):

All Operating Companies

  • Part-time
  • Temporary
  • Term-of-Project

Employees must be in an active work status or on an eligible leave of absence (Family & Medical Leave or Personal Leave) to be eligible for benefits under this policy. An employee must meet the definition of disability in Section II in order to qualify for salary continuation benefits. Employees whose disability began while on furlough or suspend status are not eligible to receive benefits under this policy.

  1. DEFINITION OF DISABILITY

An employee is deemed to be disabled when, as a result of a non-work related illness or injury (including pregnancy and childbirth), the employee is unable to work more than 80% of the regularly scheduled hours of his/her material and substantial duties of his/her regular occupation as determined by Unum.

  1. ELIMINATION PERIOD

The elimination period is the qualifying period to start salary continuation. The elimination period is seven (7) calendar days. During the 7-day elimination period, the first 5 work days will be charged against the Sick Day Policy. If sick time is unavailable, personal, vacation or unpaid time may be used. Holidays which occur during the elimination period are counted as part of the 7-day elimination period and are paid according to the guidelines of the Holiday Pay Policy.

Salary continuation begins after the elimination period, upon receipt of appropriate medical documentation and approval by Unum, Pearson’s disability administrator.

  1. DURATION OF COVERAGE

Upon approval by Unum, STD salary continuation is based on the employee’s service per the following schedules:

All Operating Companies

  Years of Service Benefit Level
Weeks Paid at 100% Weeks Paid at 66 2/3%
Less than 5 years 6 19
5 or more years 13 12

The maximum duration of STD salary continuation is 26 weeks (which includes the elimination period). The length of the leave is determined by Unum based on the medical condition and supporting medical documentation provided by the employee’s physician.

If the employee returns to work and within 30 consecutive calendar days is unable to work again due to the same or related disability, benefits continue from the previous effective date of disability. If the employee returns to work and after 30 consecutive calendar days or more of working is unable to work again due to the same or related disability (or any other disability), STD salary continuation benefits restart with the seven (7) day elimination period and pay according to the applicable schedule above.

Once the eligible employee has met the 180-day maximum of the STD salary continuation elimination period, the employee will be eligible to apply for Long Term Disability (LTD).

  1. COORDINATION WITH OTHER POLICIES AND STATE MANDATED BENEFITS

Employees working in states (CA, NJ, NY, PR, RI, or HI) with Temporary Disability Insurance are responsible for applying for those benefits directly through their state agency, except as noted below.

  • Employees working in the state of HI will be eligible to receive salary continuation under the provisions of this policy and do not need to file with the state;
  • Employees working in NY and NJ will receive their state benefit directly from Unum and do not need to apply for state benefits;
  • Employees working in CA, PR and RI are responsible for applying for those benefits directly through their state agency.

Salary continuation benefits provided by Pearson will be reduced to coordinate with state disability benefits to provide a total combined benefit not to exceed the benefits provided under this policy whether or not the employee has applied for such state benefits.

This policy does not address leaves of absence for Workers’ Compensation or Family and Medical Leave (FML). However, STD salary continuation and Worker’s Compensation run concurrently with FML, per the policies.

When an employee’s leave of absence is due to a work-related injury or illness, and the employee is provided with salary continuance from the Worker’s Compensation carrier for time away from work, benefits from this policy will not be granted.

In addition to state mandated benefits, other sources of income (such as – but not limited to – social security, no-fault insurance, railroad pension, veteran’s administration or any third-party benefits) will be deducted from your disability payment if you are collecting payment for the same condition under which you qualify for STD salary continuation under this policy.

  1. COMPENSATION

Generally, employees may not work for other compensation while on STD salary continuation. In certain circumstances, employees may be able to work for other compensation outside of Pearson. In those instances, employees are required to coordinate with Unum, their Leave Coordinator and their (Pearson) manager so as not to disqualify themselves from future STD salary continuation benefits. Differentials, holiday pay, vacation pay or any other additional compensation will not be paid while the employee is on an approved STD salary continuation leave. Any additional remuneration such as bonuses, commissions and incentives will be paid in accordance with the governing plan document for the respective plan. Merit increases to the employee’s base pay during his/her STD salary continuation leave will not be effective until the date the employee returns to a full-time work schedule. Increases will not be made retroactively.

Employees paid by direct deposit will continue to receive payment via that option. Employees paid by check will continue to receive checks during their leave. Taxes and regular deductions continue to be taken from any pay received through STD salary continuation.

  1. BENEFITS

Employee benefits continue while the employee is on approved disability leave. While on STD salary continuation, vacation time accrues. However, employees may not carry-over unused vacation into the next year and will not receive payment in lieu of taking the vacation time.

  1. FRAUD

Any person who defrauds or deceives Pearson or Pearson’s disability administrator, files a statement of claim containing any false, incomplete, or misleading information is guilty of insurance fraud, which is a crime. Penalties may include imprisonment, fines, a denial of benefits and/or termination from Pearson.

  1. RESERVATION OF RIGHTS

The Company reserves the right to amend, modify or terminate this policy at any time and without advance notice, subject to the requirements of applicable law. Please keep in mind that this STD salary continuation policy, any changes to it, or any payments to it, or any payments to you under its terms, does not constitute a contract of employment with the Company and does not give you the right to be retained in the employment of the Company. No one speaking on behalf of this STD salary continuation policy or the Company can alter the terms of this policy.