Federal Pension Insurer Moves to Take Over Sears Plans

The Pension Benefit Guaranty Corporation sought court approval Feb. 1 to terminate and assume responsibility for Sears Holding Corp.‘s two pension plans.

The PBGC wants to terminate the plans effective Jan. 31 and assume responsibility for paying benefits after the court approves the termination plan. The agency expects to cover the “vast majority” of benefits owed under the plans, it said in a press release.

The plans of Sears and subsidiary Kmart Corp. cover about 90,000 people and are 64 percent funded, with a shortfall of about $1.4 billion. Workers stopped accruing additional benefits under the plans in ...