Thread regarding Sears layoffs

Since we are stuck taking the annuity, another factor is the amount they subtract for survivor benefits. Depending upon the option you choose, that can be 10 or 15 percent of the monthly amount. One option is to buy life insurance to cover your survivor and just take the whole pension amount. In many cases, this is a cheaper option. Discuss with your financial adviser and family to see if right for you. Just mentioning this strategy as it can allow us to maximize the amount we'll get since no lump sum. When you take the survivor option(s) you are basically purchasing expensive life insurance thru Sears for the survivor. There are many good books on the subject... read Ray E. Levitre CFP or Steve Vernon FSA.

@ebx - "80% Funded with what set of books?" By the accounting of the PBGC! SHLD sent out a notice earlier this year that they could, with the PBGC's authorization, offer lumpsum payments. That can only be done when a pension is funded at 80% or more. The ring fenced properties and other financial considerations were to fund the remaining 20%. With the bankruptcy filing the lumpsum offer has been rescinded, since there is now a question as to how the remaining 20% will be funded.

There is nothing to "revisit" nor "figure out." Although pensioners may no longer be able to request a lumpsum payment, they will be paid annually in full up to $65,0000. That much is guaranteed by the PBGC! Will the extremely few SHLD pensioners eligible for more than $65,000 be paid in full and will the lumpsum option return? Those two questions will be answered when the SHLD bankruptcy comes to a final conclusion.

Pension Line today stated restrictions have been put on the lump sum.

So no lump sum

Shld has covered 2/3 of the pensions with annuities purchased through Met Life.

I would hope any remaining assets would more than cover the remaining 1/3 .

80% Funded with what set of books? Let's revisit this once the ring fence's true value is determined , and the Goverments ability to cover any possible gap between what is needed and what should have been there is figured out.

@sqr - "sticking it to either the taxpayers or watering down the amount those pensioners get." That is not exactly how the PBGC works. Although the PBGC is a government entity, the taxpayers do not make up pension shortfalls. Also, the PBGC's handling of a troubled pension plan is unique to that particular plan's situation, so outcomes will vary.

The only plan in question here is the SHLD pension plan! The SHLD pension plan is not in dire shape. It is approximately 80% funded and the PBGC will guarantee SHLD pensioners up to $65,000 annually in payments. Extremely few SHLD pensioners are entitled to a $65,000 annual pension. Even those pensioners entitled to over $65,000 annually may not see a reduction; that is at the discretion of the PBGC after they evaluate the SHLD plan's final situation.

These are the facts concerning the SHLD pension plan! If anyone has doubts or questions about what has been stated, then please visit the links below.

https://www.pbgc.gov/news/press/releases/pbgc-statement-on-sears-bankruptcy-filing

https://www.pbgc.gov/about

Sorry....NO more lump sum. Federal regulations caused Sears to restrict their pension. Anyone who filed for and expected a lump sum to be received from Nov. 1 on will not get it. In addition, NEW kits are being put together and sent out for those who have or will file; unfortunately, they cannot tell you when these kits will even be ready to be sent out. This info is straight from the Pension office.

PBGC was given certain properties and assets to use in the event the company folded and couldn't fulfill its obligation.

Unfortunately , the assets were valued by the company and not independently , so there so there's a good chance the "ring fence" is full of holes and won't cover the whole amount - sticking it to either the taxpayers or watering down the amount those pensioners get.

@pfk - Quit being a troll. Nothing you stated is factual. If anyone wants to explore the facts about the PBGC and SHLD just go to the link below.

https://www.pbgc.gov/news/press/releases/pbgc-statement-on-sears-bankruptcy-filing

The PBGC will only have whatever money is left in the end to give to pensioners....it will be pennies on the dollar. Do the research on PBGC payouts for bankrupt companies over the years. Finanical advisors will tell you anything to keep your money with them. There is only so much in the end to give out and the missing amounts will not be paid by the PBGC.

There is a lot of misinformation. Canada, being a different country, does not have the same protections that we enjoy in America. When Sears Canada failed, the pensions were affected. In America, we have ERISA, which established the PBGC. That protects workers from companies raiding their pensions, sets minimum contributions and fiduciary standards (which are probably still too loose). But it means that workers are protected up to a maximum benefit level that most workers don't receive, and is backed by the government.

This is correct. I spoke to my financial adviser yesterday and he told me that his firm is watching this closely. Sears pension is not far enough along in the BK where it is taken over by PBGC. For now, everything stays the same. In my case, I filed for a lump sum in September and he told me they will probably honor it as by law the pension is considered 'reasonably funded' until Feb 2019. If you are of retirement age and you are vested in the pension, you do have a decision to make... the Sears pension dept requires 90 days notice. At this stage, not sure if they will allow lump sum as that takes you close to the Feb 2019 date....PBGC will cover the short-fall... Sears has pledged millions of dollars with the sale of Craftsman last year to the pension.

401k's are also untouchable!