Pension Equity Plan (PEP)

Pension Equity Plan (PEP)

The PEP is a defined benefit pension, which froze accruals (for all PEP eligible participants) as of 12/31/01. The PEP plan is funded entirely by the company.

Who is vested?

The PEP requires 5 full years of service to become vested (prior service from acquired organizations is included).

What are included as eligible earnings?

Regular earnings, overtime, sales related commissions or incentive and non-sales bonuses related to performance.

What is not included as eligible earnings?

Non-performance bonuses or freelance earnings for editorial and artwork independent of regular pay. As a result, W-2 earnings will not always equal PEP earnings.

Where can I see my PEP benefit?

PEP eligible participants can view their most recent PEP lump sum balance in FUSION under: Benefits –> View Current and Future Benefits.

Pearson Pension Plan FAQs

  • Former S&S Employees

    Service prior to 12/1/98 was accrued under the CBS Pension Plan (Formerly Viacom) and remains CBS’s responsibility. Benefit service which is used in the calculation of the PEP Benefit began at the time of the acquisition, 12/1/98. If you need additional information about the CBS benefit, you can contact them at 800-581-4222 or www.cbsandyou.com.

  • Former AWL (grandfathered) Employees (includes Scott Foresman/Harper Collins)

    Employees who were already age 45 or more with at least 10 years of service at the time the AWL pension transitioned to the PEP, (12/1/98), are entitled to an alternative calculation under the former AWL Pension formula. This includes service and earnings after 12/31/01 with an offset for enhanced contributions in the 401(k) plan.

  • Former S&S Grandfathered Employees

    Employees who were already age 45 or older with at least 10 years of service on the date of the acquisition by Pearson were grandfathered in their AWL benefit formula. This includes service and earnings after 12/31/01 with an offset for enhanced contributions in the 401(k) plan and an offset of the CBS benefit (formerly Viacom). If you need additional information about the CBS benefit, you can contact them at 800-581-4222 or  www.cbsandyou.com.

  • Pension Eligible Earnings

    The definition of pension eligible earnings used in the PEP includes regular earnings, overtime, sales related commissions or incentive and non-sales bonuses related to performance. The definition does not include non-performance bonuses or freelance earnings for editorial and artwork independent of regular pay. As a result, W-2 earnings will not always equal PEP earnings.

  • Value Date

    The PEP value located in your Oracle HR record under Current Benefits represents the lump sum value as of January 1, 2016. Service will be used to determine vesting at the time an employee leaves the company. The value of the frozen accrued benefit will earn interest at a rate of 5% per year or the prevailing 30-year treasury rate, whichever is less.

  • PEP

    The Pension Equity Plan is a defined benefit pension which froze accruals as of 12/31/01. This Plan is funded entirely by the Company.

  • Vesting

    The PEP requires 5 full years of service to become vested (service from acquired organizations is included).