I reach my pension in a few weeks. I’ve managed to survive all the layoffs and BK and I;m eager to end my professional career. Given that I will reach my pension while the company is still in Transform Co mode, I was wondering whether I will have any problem or negative implications regarding my pension? Thoughts?
15 replies (most recent on top)
@1bel - The PBGC website clearly states:
"At this time, benefits paid from the Sears Holdings Corporation pension plans are estimates of the amounts payable by PBGC. However, PBGC's preliminary analysis shows that, for the majority of people covered under the Sears Holdings Corporation pension plans, the monthly plan benefit is fully guaranteed."
What happened with the RJR plan is totally unrelated to the administration of the SHLD plan. Every pension plan is unique in structure and merit, therefore, the coverage offered by the PBGC will vary from plan to plan.
Pension, life insurance, and dental coverage will be comingled under section 37-K to a unified shift-plan pursuant to article 45RB as defined before the BK docket committee listed prior to active payment reimbursements.
The administrative insolvency of SHC or transform is irrelevant to what PBGC pays out. PBGC owns the plans fully now, there is no more money coming from Sears. There’s a formula that guarantees everything up to about 4k a month.
@zec- The PBGT fund took over the pensions in January of 2019. However, they have been adjusted downward for other retirees in the past. In this case, they may be lowered due to administrative insolvency. Just another shell game by the government playing Eddie's game. Didn't RJR retirees only get 40 percent of their benefits due to lawsuits. Eddie will declare oldco and transformco insolvency, leaving a billion in outstanding lawsuits, while Seritage and ESL walk away. The 400 million that the Sears companies promised to PGTF will dissipate.
PBGC Annual Report 2018. The Pension Benefit Guaranty Corporation protects the retirement security of nearly 37 million American workers, retirees and their families in private-sector defined benefit pension plans. ... However, these benefits are at constant risk due to events such as bankruptcy or insolvency.Nov 15, 2018
For a lot of retirees, the life insurance benefit was even more important than the pension benefit.
@zek - No "good luck" needed; it has already been determined that extremely few Sears pensioners will see benefit reductions. This fact was plainly stated in the Plan Termination Notice:
"For over 99% of Plan participants, the level of benefits owed will not be changed."
@day- get with the program. We are talking pensions here. Not life insurance. In this age of Google you would learn the difference.
@fyq what do you think terminate means? Life insurance was just terminated by the way.
It all depends on whether the Fed pension fund will do a 100 percent payout. They have been known to reduce percentages on pensions in the past. Good luck.
@cvs - Absolute nonsense, nothing stopped on January 31, 2019. The following notice was issued in January.
"The Notice of Intent to Terminate outlines Sears Holdings Corporation's intent to terminate the Plan as of March 31, 2019. Terminating the Plan involves transferring the administration of the Plan and delivery of benefits to the Pension Benefit Guaranty Corporation ("PBGC")."
All pensions stopped on January 31, 2019 and were taken over by the PBGC.
Sears Plan Termination Service Center 1-866-682-3480
Sears Pension Service Center 1-800-953-5390 or https://searspension.ehr.com
There is no pension with Transform CO. Your pension is with the feds at PBGC just like @pug stated.
Look up the PBGC faq for Sears and contact them directly.
Call the 800 number for the pension and get the info directly from those who know rather than here.