The Pension Benefit Guaranty Corporation (PBGC) has announced that it has reached an agreement that will provide approximately $500 million in funding for Sears’ two pension plans.
The plans cover approximately 100,000 participants, the PBGC says. It further says that the closing on the new agreement should occur in around three months.
The new agreement amends a previous one the PBGC and Sears reached in March 2016. That agreement calls for Sears to protect the assets of certain special purpose subsidiaries holding real estate and intellectual property for the benefit of the two pension plans. This is the second amendment of the 2016 agreement; in March of this year, the PBGC and Sears had amended it to accommodate the sale of the Craftsman brand to Stanley Black & Decker.
The plans cover approximately 100,000 participants, the PBGC says. It further says that the closing on the new agreement should occur in around three months.
The new agreement amends a previous one the PBGC and Sears reached in March 2016. That agreement calls for Sears to protect the assets of certain special purpose subsidiaries holding real estate and intellectual property for the benefit of the two pension plans. This is the second amendment of the 2016 agreement; in March of this year, the PBGC and Sears had amended it to accommodate the sale of the Craftsman brand to Stanley Black & Decker.
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