WASHINGTON –The Pension Benefit Guaranty Corporation has reached an agreement with Sears Holdings Corporation under which the agency will withdraw its objection to the proposed sale of Sears’ assets to ESL Investments.
This agreement also clears the way for PBGC to assume responsibility for Sears’ two pension plans, which are covered under PBGC’s Single-Employer Insurance Program.
The agreement is subject to approval by the Bankruptcy Court in White Plains, New York. Details of the agreement will be filed with the court.
About PBGC:
PBGC protects the pension benefits of nearly 37 million Americans in private-sector pension plans. The agency operates two separate insurance programs — one covering pension plans sponsored by a single-employer and another covering multiemployer pension plans, which are sponsored by more than one employer and maintained under collective bargaining agreements. PBGC is currently responsible for the benefits of about 1.5 million people in failed pension plans. PBGC receives no taxpayer dollars. Its operations are financed by insurance premiums, investment income, and, for the Single-Employer Program, assets and recoveries from failed single-employer plans. For more information, visit PBGC.gov.