Protecting your benefits
The Pearson Pension Plan (the Plan), in consultation with Pearson, has purchased a further pensioner buy-in policy with Legal & General totalling approximately £500m. Together with two policies purchased in October 2017, with Legal & General and Aviva, approximately 50% of the Plan’s liabilities are now insured totalling approximately £1.8bn.
This news was released to the press today and you can find a copy of the announcement here.
Why has the Trustee taken this step?
The Plan’s strong funding position has allowed the Trustee to continue to follow a strategy of reducing risk by aligning investments more closely with the pension benefits payable to members. This buy-in transfers further longevity risk to Legal & General, reducing the pension risks being underwritten by Pearson and provides additional security for members.
Pensions to all members will continue to be paid directly from the Plan and will continue to be reviewed in accordance with the pension increase rules of the Plan.
A set of questions and answers are available which should address any queries that you have and members of our pensions team are also available if you have any further questions. You can contact us on:
|Phone:||Helpline (Freephone): 0800 7811378|
(Phone lines are open Monday-Friday 8am-6pm, excluding bank holidays)