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Sears is bankrupt and overloaded with debt, including pension liabilities which can’t be paid any longer. These liabilities will undoubtedly be dispensed with during the bankruptcy problem.
There’s just one problem; the federal government is going to have to pick up the tab:
Federal - Agency - Responsibility - Sears - Pension
A Federal agency is preparing to take responsibility for Sears’ pension plans, which cover more than 90,000 people.
The Pension Benefit Guaranty Corp. said in a new release Friday that it believes Hoffman Estates-based Sears Holdings Corp.’s “continuation of the plans is no longer possible” after the company filed for bankruptcy in the fall.
Agency - Individuals - Pensions - Limits - Pension
The agency covers individuals’ pensions, up to certain limits, if an insured pension plan shuts down without enough money to pay all benefits. It estimates Sears’ two pension plans are underfunded by about $1.4 billion. As a creditor, the agency could attempt to recover some of that money through the bankruptcy.
The PBGC said it expects its guarantee will cover the “vast majority” of pension...
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