Pearson Benefits

Welcome to this edition of For Your Benefit!

Hello, all. Like so many of you, I am welcoming the arrival of nicer weather and bidding farewell to winter’s wrath. With that in mind, this issue will take a look at many aspects of summer safety. Whether you have a planned getaway or will just be more active outdoors, we’ve included some reminders to help ensure a safe season ahead. Before we get to summer, though, the month of May brings with it two observances of important health issues. Let’s talk about mental health, first.

Campaigns like May’s Mental Health Month are creating awareness and working to lift the stigma associated with mental health disorders. This is so important since, according to the National Alliance on Mental Health, nearly 10 million adults in America live with a serious mental illness and one-half of all chronic cases begins by the age of 14. In this issue, we are looking at the impact of risky behaviors or habits on mental disorders. So, take a look at the information we’ve gathered, and please make note of the benefits Pearson offers should the need arise.

Also being acknowledged in May is Preeclampsia, a disorder that occurs during pregnancy, and, in rare instances, postpartum. The Preeclampsia Foundation’s research reveals that globally, preeclampsia and other hypertensive disorders of pregnancy are a leading cause of maternal and infant illness and death. While you’re learning more about this condition, you’ll also see how Pearson’s maternity programs can provide support throughout a pregnancy. Plus, there is an opportunity through these programs to earn a gift card to help with those new baby expenses.

Lastly, being fit also includes your financial well-being. For those who may be nearing Medicare eligibility, there are some reminders here for you and, last but not least, find out more about the next Employee Stock Purchase Plan enrollment opportunity.

Best wishes for a safe and enjoyable summer,

John Jacobs, Vice President, Global Benefits

Hello to all. I’m John Jacobs, Vice President of Global Benefits. I joined Pearson in October of 2016. I am delighted to be here, and look forward to working with each of you. I’ll spare you the lengthy background, and just say that I bring several years of experience to this role, having been involved in virtually every aspect of employee benefits along the way. Ok, enough about me…here’s a preview of what you’ll find inside this edition of For Your Benefit.

“There just aren’t enough hours in my day.” Sounds familiar, right? We all can use some help keeping on top of our busy lives. Take a look inside to learn more about the LifeCare^® Concierge Services, which can save you time and energy.

Have some questions about our new prescription drug plan administrator? This issue also contains some answers to questions about how best to utilize your prescription plan benefits under our new partner, CVS/caremark^™.

We’re also thrilled to announce a quarterly webinar program where you’ll be able to learn more about the Benefit programs offered by Pearson.

This month also brings an awareness campaign around the eye disease called Age-Related Macular Degeneration, or AMD. Learn what it is, the causes and the treatments available. While some of you are too young to be impacted by AMD, it is commonplace today for many of us to be the caregivers for our elderly loved ones. Take a look inside to find out about this condition on their behalf, while learning what you might need to know in later years.

I’m excited to be a part of Pearson and the benefits team. I’m grateful for the warm welcome I’ve received from the many wonderful and talented people I have met. I look forward to meeting many more of you in the days ahead.

Be well,

John, Vice President, Global Benefits

Greetings, and if we haven’t crossed paths before, I’m Stacey Rodgers, Director of Health & Welfare Plans for North America. Each year Open Enrollment brings changes that you need to be aware of to make informed decisions. So, let’s talk about the usual topics of plans and costs, learn about our new prescription partner and, sprinkle in a little politics as it relates to healthcare reform.

I am pleased to announce that our medical plans will stay the same with both the Basic and Enhanced PPOs being offered through Anthem and Cigna in 2017. In addition, there is no change next year to deductibles and copays for any of the medical plans. Nevertheless, we will need to make some adjustments to payroll contributions for 2017. For a look at the plans impacted, please see the chart in Article 1.

Pearson Benefits is always looking for partners who provide the highest level of service, save you and the company money, and demonstrate a strong commitment to health. With that in mind, we are pleased to introduce CVS Caremark™ as your prescription plan administrator effective January 1, 2017. We’ve chosen to work with CVS Caremark^™ for several reasons, among them their 67,000 pharmacy network including those in Target stores, and its commitment to a culture of health with actions such as banning the sale of tobacco products in its pharmacies. To learn more about our new partner and what you need to know about this change, please see Article 2.

With a presidential race underway, along with many seats in Congress in contention, we don’t know what the political landscape will look like after November or what changes might occur, so we must plan ahead based on the current healthcare legislation. That journey will likely include additional changes to our benefits in the near future.

Despite all the financial considerations, the bottom line here is about your well-being. It’s about being healthy and doing all you can to prevent or diagnose serious illnesses early. It’s also about times when, even if you’ve been doing everything right, illness may strike. That’s when you can rest easy knowing your benefits through Pearson are here to support you.

Be well,

Stacey Rodgers
Director, Health & Welfare Plans, North America

For many years here at Pearson I have been talking about the importance of proactive, preventive health. Some of you have heard me speak at meetings about the importance of age and gender-related screenings so that we can catch things early and, hopefully, prevent them from becoming more serious. Well, this issue of For Your Benefit hopes to shine the same spotlight on mental health.

Just as important as early cancer detection, signs of mental health illness might be present and should never be ignored. I encourage you to read Learning to Recognize Mental Health Conditions and the B4Stage4 campaign from Mental Health America. After that, we explore the spectrum of mental health issues as we grow older, and also in our young people. Recognizing early warning signs and then investigating those before serious issues develop is key here as it is in any other medical issue.

There are many ways that Pearson supports good mental health. Whether it is the coverage available through our medical plans, or with ancillary programs like the Employee Assistance Program (EAP) that offers free telephonic counseling and up to five in-person sessions, we are here to support you and your family members.

It’s also that wonderful time of year when spring allergies kick into full gear! We’ve included some helpful information to better understand allergies and asthma.

Finally, it’s a good time to review your financial health. As a reminder, Pearson recently made the Annual Company Contribution to your Retirement Plan 401(k) account. This was a total plan contribution of approximately $16M and represents our commitment to helping all employees prepare for their retirement.

My very best wishes for a happy, healthy and safe spring season!

Bob Arthur
Vice President, Global Benefits

Happy Belated New Year to all!

Personally, I never make New Year’s resolutions as I never seem to keep them beyond February. That said, I do try to make some goals and objectives for the year. Somehow in my mind these are different than resolutions…right?

It is a great time of year to take stock of things like our health – both physical and financial. In addition to all of the symbolic hearts we will see this month it is also National Heart Month. This issue of For Your Benefit devotes some space to matters of a healthy heart. Please see Article 2 to learn more about the signs of a heart attack and stroke and how they are different for men and women. This is followed up by some information on maintaining a healthy heart and some resources for you. One of those is to make sure you get your annual physical. The Pearson medical plans cover annual physicals at 100% both in and out-of-network.

While our medical plans didn’t change this year we did see some of the out-of-pocket costs increase slightly – copays, deductibles and out-of-pocket limits. Before the year gets under way, take some time to review the plan you’ve selected and know what these new limits are and how they work. There’s a great chart in Article 5 that might help with some commonly misunderstood terms.

Finally, the end of year announcement by the IRS saw no change in the limits affecting the 401(k) plan. Please review the 2016 limits in Article 8 and make sure you have reviewed your financial plan for the new year. This might include resetting your contribution amount, taking a fresh look at your investment allocation or simply making sure your beneficiary information is up to date.

We are off to another year with all of the challenges that life throws at each and every one of us. Our wish for all of you is to take good care of yourselves. Pearson Benefits is here to help wherever we can.

Best,

Bob Arthur
Vice President, Global Benefits

Welcome to this edition of For Your Benefit!

It seems like yesterday that I was writing a similar letter about Open Enrollment, and just like that, another year has passed and here we are again.

I mentioned last year that we would begin making changes that would continue in subsequent years.

Let me start by saying that our plans are remaining the same in that we will offer both the Basic and Enhanced PPOs with both Anthem and Cigna. We will, however, be making some adjustments to deductibles, copayments and out-of-pocket maximums. You can easily see these changes in the chart on page 3. Now, why do we need to increase certain costs in the plan?

As the market has shifted in recent years and employer-sponsored health plans have adjusted to those changes, Pearson has managed to offer very competitive plans. Our deductibles and out-of-pocket maximums are more generous than the benchmark in almost any study we examine. There are, however, a number of factors that make it necessary for us to adjust some plan provisions. Health care costs continue to increase year over year. Some of the largest increases we’re seeing are in the area of specialty drugs – high cost and effective medication to treat conditions like rheumatoid arthritis, multiple sclerosis, cancer and hepatitis-C. These drugs improve the quality of life for patients, and oftentimes keep them out of expensive hospital settings; but they come at a significant cost.

The second major factor is something I’ve been mentioning in this letter the past few years – the impact of the Affordable Care Act (ACA) on our plans. We are making changes for next year, in 2017 and again in 2018 in order to avoid a 40% excise tax on employer-sponsored plans that exceed certain thresholds set by the ACA. Without these changes, that tax can cost millions of dollars each year, and that is something we simply cannot afford.

So, we will continue to do what we have always done: offer competitive plans that take into account our employees, their families, and the many health concerns they are challenged with, while responsibly managing our costs.

I remain convinced that the best way to manage health care costs is to remain as healthy and active as possible while being very mindful of how we use the medical plans as engaged and informed consumers.

Bob Arthur
Vice President, Benefits