Sears Pbgc Agreement

by admin on December 16th, 2020

The agreement announced Thursday exists only between the PBGC and Sears. PBGC has been working with Sears for several years to improve financing of the company`s plans and reached an agreement for the first time in 2016. As part of agreements with the Agency, Sears first sold its Craftsman brand to obtain funds for retirement plans, and was then allowed to sell real estate to raise funds. PBGC protects the pension benefits of nearly 37 million Americans in private retirement plans. The Agency manages two separate insurance plans, one for single-employer-sponsored retirement plans, the other that covers multi-employer retirement plans, sponsored by more than one employer and managed under collective agreements. PBGC is currently responsible for the benefits of approximately 1.5 million people in failed retirement plans. PBGC does not receive taxpayers` money. The financing of their business is provided by insurance premiums, capital income and, for the program for single-parent employers, through assets and recoveries on default plans for a single employer. For more information, see PBGC.gov.

The PBGC stated that it assumed that its guarantee would cover the “vast majority” of pension benefits acquired under Sears` plans. Retirees who have questions about what support would mean for their pension can visit www.pbgc.gov/Sears-QA. Sears Holdings Corporation (NASDAQ: SHLD) is a leading integrated retailer focused on integrating digital and physical shopping experiences to serve our members where, when and how they want to shop. Sears Holdings is home to Shop Your Way┬«, a social shopping platform that offers members rewards for their purchases at Sears and Kmart as well as with other business partners in all categories important to them. The company operates in the United States through subsidiaries such as Sears, Roebuck and Co. and Kmart Corporation, with full and special retail stores. For more information, please see www.searsholdings.com This agreement also paves the way for the PBGC to assume responsibility for the two Sears pension plans covered by the PBGC Employer Insurance Program. As part of their agreement with PBGC, Sears agrees to protect the assets of subsidiaries that own real estate and their intellectual property, but they will have attached so-called “Springing Links” to them, which will be triggered when Sears stops paying pension contributions, prohibits any transfer of ownership to subsidiaries or announces its plan. They would also be triggered by the bankruptcy of Sears or subsidiaries.

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