Sears Bankruptcy Will Impact Retirees

Sears formally filed for bankruptcy protection on Monday, October 15, 2018 in the Southern District of New York, after being unable to repay $134 million in loans.  According to media reports, Sears plans to close about 142 of its 700 stores by year end.  But the Sears bankruptcy filing could do more than just leave hundreds of mall locations without anchors.  If the Sears reorganization plan turns into a liquidation, the Sears pensioners, who number between 90,000 – 100,000, will feel the consequences.  Sears had pension liabilities of $4 billion in 2017 and its pension plans were reported to be underfunded by about $1.5 billion.  Sears was one of the many companies to jump on the pension de-risking bandwagon in 2017, when they transferred $515 million in pension liabilities to MetLife. MetLife is now responsible for paying future pension benefits to about 51,000 Sears retirees.  Speaking to MarketWatch on the risks facing retirees,  Edward Stone said: “If pensions are turned over to the Pension Benefit Guaranty Corp., a U.S. government agency whose mission is to protect retirement incomes, many pensioners will likely see their benefits reduced.” Click here for the full article on  For more information on the risks associated with pension de-risking contact Edward Stone at