Pension news

Important announcement about the Plan

17 October 2017

The Trustee has taken a big step to provide further protection for your benefits in the Plan and you may read about it in the press. The changes do not affect your benefits in the Plan, or how they are paid. You do not need to take any action. Please read more for further details.
Protecting your benefits
The Trustee, in consultation with Pearson, has purchased two insurance policies (one with Aviva and one with Legal & General) known as buy-in policies. The buy-in policies are investments that provide the Plan with an income which matches the pension payments they cover. They reduce the overall funding risk of the Plan and this improves the financial security for members. These transactions mean that we have insured two thirds of current pensioner liabilities.
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.

Why the Trustee has taken this step?
The Plan’s strong funding position has allowed the Trustee to follow a strategy of reducing risk by aligning investments more closely with the pension benefits we will need to pay to members. These buy-in policies protect the Plan against the risk that we will have to pay pensions to members for longer than currently expected.
Here are some ‘questions and answers’ 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:
Pensions helpline: Freephone: 0800 7811378