Pearson Education Inc 401(k) Review & Grade
The Pearson Retirement Plan 401(k)
Hoboken, NJManagement of Companies10,090 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$3,219Employer $ per active participant
$6,296Employee $ saved per active participant
0.07%Direct admin cost, % of plan assets
$2.4BNet plan assets, end of year
$152,681Average balance per account
Score breakdown
- Employer generosity30.4 / 5061th percentile for employer $ per participant
- Low cost14.9 / 2559th percentile for low admin cost vs. same-size plans
- Employee saving8.9 / 1559th percentile for employee $ per participant
- Plan features10 / 10Auto-enrollment, Default investment
- Red-flag deductions-3 pts1 issue reported on the filing
Total score61 / 100 · Grade B
This plan vs. peers
Peers: all industries, plans with 10,000+ active participants (fewer than 30 industry peers) (820 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 61th |
| Lower admin cost | 59th |
| Employee saving | 59th |
| Peers that auto-enroll | 50% |
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Red flags from the filing
Corrective distributions: the plan refunded $5,497 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Pearson Education put in about $3,219 per active participant, more than the typical peer ($2,229). Contribute at least enough to collect the full match. Skipping it leaves part of your pay on the table.
- The filing shows total dollars, not the match formula. Ask HR for the Summary Plan Description so you know the exact match and vesting schedule.
- Fund expense ratios aren't in the filing. Look them up in your 404(a)(5) fee disclosure and favor low-cost index or target-date funds.
- The plan auto-enrolls employees. Check your default contribution rate. Defaults are often lower than what it takes to get the full match.
- Changing jobs? You can usually leave the money in the plan, move it to your new employer's plan, or roll it into an IRA. Don't cash out: you'd owe taxes and possibly a 10% penalty.
The raw numbers from the filing
| Employer contributions | $32,474,977 |
| Participant (employee) contributions | $63,529,180 |
| Other contributions (incl. rollovers in) | $10,095,104 |
| Administrative expenses paid from the plan | $1,601,727 |
| Investment advisory & management fees | $1,176,347 |
| Other admin expenses | $3,300 |
| Benefits paid out | $302,291,503 |
| Net assets, start / end of year | $2.3B / $2.4B |
| Active participants, start / end of year | 10,332 / 9,848 |
| Participants with account balances | 15,554 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | Legacy Professionals LLP |
Largest service providers (Schedule C)
| Empower Advisory Group, LLC | $1,088,482 reported compensation |
| Empower Annuity Insurance Company | $394,814 reported compensation |
| Segal Advisors Inc | $73,728 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20260331125608NAL0000132467001, received 2026-03-31, EIN 22-1603684, plan #002, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.