This page contains information about your benefits after you leave Pearson. You should review the sections pertaining to the plans and programs you participated in as an active employee. Should you have any questions about the Health & Welfare plans you participated in, please call Mercer Marketplace at 1-855-237-6421.
It is important to keep Pearson updated regarding any change of address after leaving the company. If you have a change of address, please email Pearson People Services (PPS) at [email protected].
Health Care Coverage
Company medical, dental and/or vision coverage ends at 11:59 p.m. on the last day of the month in which you terminate. For example, if your last day of employment is May 3, your coverage ends at 11:59 p.m. on May 31.
Under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), you can elect to continue the medical, dental and/or vision coverage you had as an active employee for up to 18 months following your termination of employment.
You will receive detailed COBRA information directly from the Company’s COBRA administrator, Mercer Marketplace. The materials, including an election form, will be mailed to your home address on record generally within 14 business days of your last day of employment. Continued coverage under COBRA is not automatic. You must complete the enrollment form to receive COBRA coverage. If you have any questions, please call Mercer Marketplace at 1-877-248-0510.
If you (or a covered dependent) are eligible for Medicare as of your separation date it is extremely important to enroll in Medicare (Parts A and B) on or before the start of your COBRA coverage. You may incur significant financial penalties if you delay enrollment in Medicare. Regardless of Medicare enrollment, Medicare will be considered the primary payer and medical coverage through COBRA is secondary NOT supplemental. For specific details on Medicare enrollment/benefits please contact Medicare at 1-800-633-4227 or visit www.medicare.gov.
− SUBSIDIZED COBRA
If you were offered subsidized COBRA as part of your severance agreement, you must complete the COBRA Election form. Continued coverage is not automatic. Monthly premiums provided in the COBRA Election form are the full COBRA premiums. PLEASE NOTE: Your actual subsidized premium will be provided on your payment coupons AFTER you have enrolled in COBRA.
Tax Advantaged Accounts
Health Care and Combo FSA
Participation in the Health Care FSA and Combo FSA ends at 11:59 p.m. on your last day of employment. Expenses incurred for services after that date are not eligible for reimbursement (unless you elect the continuation coverage described below).
Limited Health Care FSA and Combo FSA continuation coverage is available under COBRA on an after-tax basis. You’ll have the opportunity to elect this coverage when you receive your COBRA materials from Mercer Marketplace. If elected, participation may only be continued through the end of the plan year (December 31) in which you terminate.
Health Savings Account
Access to the funds in your Health Savings Account (HSA) continues after your employment with Pearson ends. You may leave your funds in the Pearson HSA (there is a small monthly administrative fee) or you may roll the funds over to another Health Savings Account. Please contact your new HSA administrator to provide details on how to roll over your funds.
Dependent Day Care FSA
Participation in the Dependent Day Care FSA ends at 11:59 p.m. on your last day of employment. However, if you terminate employment with funds remaining in your account, you can be reimbursed for claims incurred through the end of the plan year (December 31) in which you terminate. Eligible expenses will be reimbursed up to the amount you contributed as of your date of termination.
You have 90 days post-termination to submit a claim that was incurred prior to your termination date. Funds remaining after the 90 days will be forfeited.
Life and AD&D Insurance
Basic Group Life Insurance
Basic group life insurance coverage ends at 11:59 p.m. on your last day of employment. You may continue your basic life insurance for 12 months through a continuation option with Securian Life Insurance Company. Under this option, rates are based on current age and differ from the rates you paid while employed. You may convert your basic life insurance either now or when your 12 months continuation ends.
You will receive information from Securian about continuation of coverage within 14 business days of your termination date. For specific questions regarding continuation of your basic life insurance, please contact Securian at 1-866-365-2374.
Supplemental Life Insurance
Any supplemental life insurance coverage you purchased for yourself and/or your family members ends at 11:59 p.m. on your last day of employment. You may continue life insurance coverage for 12 months through a continuation option followed by a portability option for any supplemental coverage, if you are under age 80. Under this option, rates are based on current age and differ from the rates you paid while employed.
You also have the opportunity to either port or convert supplemental life insurance. However, your spouse and/or child(ren) cannot port coverage unless you do. Under this option, rates are based on current age and differ from the rates you paid while employed. You will receive information from Securian about continuation of coverage within 14 business days of your termination date. For specific questions or to port/convert your coverage, contact Securian at 1-866-365-2374.
Accidental Death and Dismemberment Insurance
Accidental death and dismemberment coverage ends at 11:59 p.m. on your last day of employment. Continuation of coverage is not available.
Long-Term Disability Insurance
Long-term disability (LTD) coverage ends at 11:59 p.m. on your last day of employment. If you were covered under the LTD plan for at least 12 months prior to termination, you may be eligible to convert your coverage to an individual policy through Lincoln Financial. Individual coverage and costs may not be identical to the coverage you had while employed. You will receive information from Lincoln Financial about continuation of coverage within 14 business days of your termination date. For questions about continuation of coverage, contact Lincoln Financial at 1-888-786-2688.
Voluntary benefits are available after termination from Pearson. Please see below to understand what actions you may need to take to continue coverage.
− AFLAC (Accident, Critical Illness & Hospital Indemnity Insurance)
You may continue your policy(ies) with Aflac after termination at the same rates that you paid as an active employee. You must contact Mercer Marketplace at 1-855-237-6421 to be direct billed for your premiums to continue your policy(ies).
− InfoArmor ID Theft Protection & Nationwide Pet Insurance
You may continue your policy(ies) after termination at the same rates that you paid as an active employee (you may be subject to a small administrative fee imposed by Nationwide). InfoArmor (1-800-789-2720) and Nationwide (1-855-525-1458) will notify you directly to confirm your intent to continue coverage. Should you wish to continue coverage, you will be direct-billed for your premiums.
− MetLife Auto & Home
You can continue your policy with MetLife after your termination. MetLife will be notified of your termination and you will be direct-billed for your premiums. You may see an increase in your premium since, upon termination, you will no longer be eligible for group discounts as a Pearson employee. You can call 1-800-438-6388 for more information.
− Hyatt Legal (MetLaw) Plan
You may continue your policy with Hyatt after termination at the same rates that you paid as an active employee. You must contact Hyatt at 1-800-438-6388 to be direct-billed for your premiums to continue your policy.
Other benefits are available for a specified period of time after termination from Pearson. Please see below for specifics.
− Employee Assistance Program (EAP)
As a terminated employee you (and your household members) have 30 days post-termination to initiate a new EAP claim. You have 180 days in which to complete the five (5) free face-to-face sessions. You can reach the EAP at 1-800-593-4138.
− Consumer Medical
As a terminated employee you (and your household members) have access to Consumer Medical up to 30 days post-termination. You can reach Consumer Medical at 1-888-361-3944.
As a terminated employee you have access to LifeCare (1-800-450-7071) up to 30 days post-termination.
The Pearson Retirement Plan [401(k) Plan]
Participation in the Pearson Retirement Plan [401(k) Plan] ends on your last day of employment. To request a distribution, you must contact Empower Retirement directly at 1-844-465-4455 or by accessing your online account at www.empower-retirement.com/pearson.
− Account Balance and Distribution Information
If your vested account balance is greater than $5,000, you may leave your money in the Plan, or you may take a full distribution of your vested account balance at any time.
Balances of $5,000 or less cannot remain in the Plan, and will be distributed as follows:
- Vested account balances of $1,000 or less — if you do not request a distribution within 90 days from your last day of employment, Empower Retirement will automatically send you a cash lump sum payment.
- Vested account balances between $1,001 and $5,000 — if you do not request a distribution within 90 days from your last day of employment, Empower Retirement will automatically roll over your balance into an IRA.
If you elect a distribution, your account balance can be directly rolled over into an IRA, directly rolled over into another employer’s qualified plan, or it can be made payable to you in a single lump sum. If your account is made payable to you, you may incur substantial tax withholding and/or early withdrawal penalties. You should consult a financial advisor before making your decision.
− Outstanding Loan
If you have an outstanding loan balance from the 401(k) Plan upon termination, Empower will automatically re-amortize your loan to allow for monthly repayment of your balance. You will receive a loan re-amortization confirmation, which includes repayment instructions, within 30 days of your termination.
If you subsequently stop making repayments, your outstanding loan balance will immediately become due and payable, subject to the grace period as set forth in your loan agreement and promissory note. You will have the opportunity to repay your loan during the grace period, but if you fail to do so, the outstanding loan balance will go into default and automatically be treated as taxable income to you after the grace period lapses. If you are under age 59½ at the time of the default, an additional 10% penalty tax may also apply. Please contact Empower at 1-844-465-4455 if you have any questions.
Pearson Employee Stock Purchase Plan
Participation in the Employee Stock Purchase Plan ends on your last day of employment. Your savings for the current offering period will not be used to purchase shares at the end of the offering period. Instead, a check for those contributions will be mailed to you the month following the month in which you terminate employment. Existing balances can be left in the plan or you can request a distribution by contacting Empower Retirement at 1-844-465-4455 or by accessing your online account at www.empower-retirement.com/pearson.
Pearson Inc. Pension Plan
If you are a vested participant in the Pearson Inc. Pension Plan, you will be sent details regarding your pension benefits under separate cover within 6-8 weeks following your date of termination. Please note this is a frozen plan and you are a participant only if you were an eligible Pearson employee prior to January 1, 2002.
Retiree Medical Program
If you were age 55 or over and had at least 10 years of service as of December 31, 2014, you may be eligible to participate in Pearson’s retiree medical program. If eligible, you will receive plan/enrollment information directly from HealthEquity, the Company’s Retiree Medical Program administrator in the weeks following your date of termination.