The fate of pensions for retired Sears employees has been hanging in limbo ever since the iconic retailer filed for bankruptcy in October. When it became clear that Sears could not pay down its two pension plays, the pension agency last month began to take steps to assume the duty, which means covering about 90,000 people’s retirement funds.
The pension agency also filed an objection with the U.S. Bankruptcy Court for the Southern District of New York in January, noting that Sears entered a five-year pension protection plan with it in 2016. The agreement gave the agency an interest in intellectual property of the Kenmore and DieHard brands in case Sears faltered financially. If the ESL deal to buy Sears is approved, that could weaken those protections.
