Is Pearson ending their 401K / pension plan? Received a letter from Pearson Pension Plan Termination Center that seems to indicate this by end of year. Does this apply to all emplyees or only those who left but still maintain their 401K with Pearson?
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EVERYONE - This has NOTHING to do with 401K!
If you read the entire letter carefully, you'll see that the plan is specifically the Pearson Inc Pension Plan, eligibility for which was frozen for participation on Dec 31, 2001, and Benefit accruals to the plan were frozen December 31, 2014. Its a long-dormant legacy pension plan that they are now going to stop administering and offer pay-out options.
It has nothing to do with the 401(k) plan that has become the primary retirement saving means.
The people who answer the phone number at the end of the letter are very helpful in explaining/confirming this.
Ending a 401k is a major deal.
From irs.gov: An employer can terminate a plan for various reasons: As a result of a voluntary decision to terminate the plan. As part of a bankruptcy. As part of a transaction where the business is sold to another company or purchases another company (merger)
The pension plan is different from your 401k. I’m curious as to why they are doing it. Another indication of preparing for a sale?
Maybe the pension plan but I haven't seen anything about the 401k. I'm not part of a pension plan though. I don't think they'd terminate the 401k but I've been surprised before.