Kmart employee pensions

[street]

I have a friend that has worked for Kmart for 30 plus years. He has been a manager for many of those years. With the closing of his store in March he is concerned about getting his retirement when the door closes.

I know there are laws that favor the employee in these situations. Not sure if company claims bankruptcy if those laws apply. What are your thoughts on this and will they get their pension or not?

Thanks

 

[Nick12]

Perhaps your friend should get a copy of the company's retirement plan and schedule a meeting with an employment lawyer who specializes in this sort of thing. Good luck.

 

[38Chevy454]

I thought KMart was under the Sears corp umbrella? Also read that Sears pensions were being taken over by the gov't pension guarantee program? Your friend needs to check and see who his pension fund is administered by.

 

[street]

Yes, I'm sure he is looking in to it and doing what it takes. I never asked a lot of questions but did feel his concerns. Time will tell and would be a bad thing if these people didn't get their pensions. A lawsuit maybe the only way if not, then that may not be a guaranteed either. I'm glad it isn't my issue and would have to think about fighting for it.

 

[ERD50]

Just google PBGC and kmart - lots of info.

Yes, PBGC will cover up to annual caps ( depends on age when plan is terminated, looks like cap is ~ $67K/year for a 65 YO).

https://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum-guarantee#2019

-ERD50

 

[street]

Thanks ERD50 >>> I will take a look at that. I did a quick look and it talked about Sears and couldn't find my answers. Thanks

 

[Lakewood90712]

Looks like the PBGC takes over at the end of the Mo.

https://www.plansponsor.com/pbgc-take-sears-kmart-pension-plans/

P.S. That financial wizard, Ed Lampert has opined the pension plan burden was a big reason Sears holdings filed chapter 11 What a hack.

 

[street]

^ thanks for that information.