Last week, one poster mentioned that those in the Sears Pension plan had to file with the Prime Clerk to protect their benefit. This is not true. I called both the Sears pension center as well as Prime Clerk and this is not required. The only instance you would need to file with Prime Clerk would be is if you lost severance or wages due to the chapter 11 filing. Sears was required by law to send those bankruptcy notices to anyone who had contact with the company (including current or former employees). That's why we all received that 6 page letter within the last week. The letter mentioned a meeting with address in the event an affected party wanted to attend. Also, the agent at the pension center told me that 'if' chapter 7 occurs and PBGC takes over, one cannot totally rule out a reduction of benefits... but in any event even if there were a reduction, pensioners would not be totally wiped out. We will not know until it happens. In any event, if any action is required by folks in the pension plan, we will be notified. That is the current state of events right now. I suppose there are some who will jump to the worst case scenario but at this time there is nothing to indicate that is going to happen. I promised last week I would publish this post when I found out more information.
Please recall that as part of the Stanley/Black and Decker sale, Sears pledged to put part of those proceeds into the pension fund. This was done by Sears due to pressure from the PBGC who have been watching this situation closely. I don't believe Sears Canada was protected by PBGC so they were forced into reductions. As interest rates are also rising, that will also take pressure off of the fund.