By Pension and Benefits Editorial Staff
The Pension Benefit Guaranty Corporation (PBGC) has announced that it has reached an agreement with Sears Holdings Corporation under which the PBGC will withdraw its objection to the proposed sale of Sears’ assets to ESL Investments. The agreement will also allow the PBGC to assume responsibility for Sears’ two defined benefit plans, which cover about 90,000 people.
Sears filed for Chapter 11 protection on October 15, 2018. The PBGC will take over the plans because Sears’ continuation of the plans is no longer possible. The PBGC covers Sears’ two pension plans under its Single-Employer Insurance Program.
The PBGC notes that the agreement is subject to approval by the Bankruptcy Court in White Plains, New York.
SOURCE: PBGC News Release No. 19-03.
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