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hettielady
Joined: 29 Nov 2003
Posts: 161
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Posted: Wed Aug 22, 2007 5:07 am Post subject: Pension Changes - More news
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Unless someone else has told you, Anyone over 55 and under 65 who has an interest in the old pension program ---Check out the latest letter on the upcoming Pension Changes on 88sears. The one dated Aug 16th. There are some very important cut off dates that are less than 90 days out. If you were planning on leaving at the end of the year or in the next few years- you may want to move up your date to prior to Nov 30th of THIS YEAR. For those wanting to take a lump sum - DO THE MATH NOW.
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terminator
Joined: 19 Oct 2003
Posts: 2801
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Posted: Wed Aug 22, 2007 2:08 pm Post subject:
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I like this one!
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What notice is Sears required to provide to associates before suspending lump sum payments?
The PPA requires pension plans with funding levels that result in restrictions (such as not being able to
pay lump sums) to notify plan participants within 30 days after the restrictions are in place. The PPA
does not require notice to be given prior to suspending payments. However, Sears Holdings will share
information about any potential suspension as soon as possible after we know for sure whether any
restrictions it will or will not apply. |
Nice ....Why bother 
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33. How does an increase or decrease in the interest rate affect my lump sum?
As a rough estimate, for each 25 basis points (0.25%) that interest rates increase, the lump sum benefit
decreases approximately 2% to 2.5%. |
Another nice one!
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40. What is the last day I can retire and still receive a lump sum before the calculation method
changes on January 1, 2008?
To receive a lump sum payment under the current rules, it must be paid prior to January 1, 2008. In
order to be paid in 2007, two requirements must be met:
a) You must retire with a termination date of November 30, 2007 or earlier. A retirement date in
December will not qualify for a payment in 2007.
b) You must complete all election forms in full (including notarized spousal consent, if married) and
return them to the Financial Benefits Service Center. Your forms must be postmarked no later
than November 30, 2007.
Therefore, if you wish to receive a lump sum payment before January 1, 2008, you should request your
retirement kit from the Financial Benefits Service Center between 60-90 days prior to your anticipated
retirement date. This will help to ensure your completed paperwork is received by the Financial Benefits
Service Center in a timely manner.
41. What is the last day I can retire and be assured of receiving my lump sum before the potential
lump sum restrictions would become effective on April 1, 2008?
As noted in prior Q&As, we do not expect any suspension in the lump sum payment option to take affect
before April 1, 2008. This is our current understanding, which has not yet been confirmed by the IRS.
To receive a lump sum payment before April 1, 2008:
a) You must retire with a termination date of February 29, 2008 or earlier. A retirement date in
March will not qualify for a payment before April 1, 2008.
b) You must complete all election forms in full (including notarized spousal consent, if married) and
return them to the Financial Benefits Service Center. Your forms must be postmarked no later
than February 29, 2008.
Therefore, if you wish to receive a lump |
Keeps getting better huh?
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What is the cost of retiree medical? How does it compare to COBRA?
The cost for COBRA continuation benefits and retiree medical benefits in 2007 is shown below. The
costs generally increase each year. The costs and plan designs for 2008 have not yet been finalized.
Once they are finalized, they will be posted on www.88sears.com (approximately November).
2007 Monthly Retire Contribution Amounts
Retiree Only Retiree +
Spouse
Retiree +
Family
COBRA Medical Options*
Select PPO $355 $780 $1,001
Basic PPO $302 $664 $ 852
High Deductible Health Plan $279 $614 $ 786
HMOs (same as available to active associates) Rates vary by plan.
Pre-65 Retiree Medical Options** Retiree Only Retiree + 1 Retiree + 2
Select PPO $650 $1,297 $1,614
Basic PPO $542 $1,085 $1,356
High Deductible Health Plan $550 $1,087 $1,352
Post-65 Retiree Medical Options*
Prescription Drug Plan
Medicare Advantage HMO plans*
Medicare Supplement plans
Rates vary by plan and state.
* COBRA benefits are available for the first 18 months after termination of employment.
** A small number of HMO options are available in limited areas.
47. What percentage of Pension Plan assets are invested in the stock market?
Approximately 50% of the Plan assets of the Sears Pension Plan and Kmart Pension Plan are invested
in the equity markets. The remaining percent is primarily invested in fixed income securities such as
corporate bonds.
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terminator
Joined: 19 Oct 2003
Posts: 2801
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Posted: Wed Aug 22, 2007 2:25 pm Post subject:
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Here is the best one of all! 
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49. What happens to the Pension Plans if the Company goes into bankruptcy?
Pension plans for companies who file for bankruptcy (and cannot continue to maintain their pension
plans) are turned over to the Pension Benefit Guaranty Corporation (the “PBGC”). The PBGC is a
federal agency which “insures” pension plans. Benefits would be paid by the PBGC instead of the
company. For 2007, the PBGC guarantees pension benefits up to an annual maximum of about $49,500
per year (for annuities paid beginning at age 65). Most age-65 benefits under the Sears Pension Plan
and Kmart Pension Plan are less than $49,500 per year.
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IF?
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Nofsdad
Joined: 06 Jul 2003
Posts: 8212
Location: Central CA
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Posted: Wed Aug 22, 2007 3:01 pm Post subject:
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Most age-65 benefits under the Sears Pension Plan
and Kmart Pension Plan are less than $49,500 per year. |
Translation: So we should be able to dump them off on the government without much of a problem.
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hettielady
Joined: 29 Nov 2003
Posts: 161
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Posted: Thu Aug 23, 2007 10:12 pm Post subject:
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I like these two:
[/i]51. What is the benefit to the Company to keep the funding level above 80%?
The primary benefit is that the Plan is well funded, which is consistent with the Company’s
commitment to meet its obligations to all Plan participants. In addition, with a funding level above
80%, lump sum eligible associates will be less concerned about the possible payment restrictions.
However, although the Company fully intends to make all required Pension Plan contributions, the
Company must balance additional contributions needed to maintain an 80% funding level (if any)
with other corporate objectives and business initiatives when determining the optimal use of capital
resources.
52. Can an associate seek re-employment after retirement?
To be eligible to begin receiving benefits from the Plan, an associate must incur what is referred to as a
bona fide termination. Essentially what this means is that, whether the associate’s termination is
voluntary or involuntary, there are no plans in place with the Company for the associate to seek
reemployment
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terminator
Joined: 19 Oct 2003
Posts: 2801
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Posted: Thu Aug 23, 2007 10:14 pm Post subject:
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there are no plans in place with the Company for the associate to seek
reemployment |
I qualify !
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denimandlace_69
Joined: 04 Jul 2003
Posts: 422
Location: Somewhere between here and there...
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Posted: Fri Aug 24, 2007 6:34 am Post subject:
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Since I can't retire for another 35-40 years I guess I'm screwed. Somewhere down the line whatever pension I'll have coming to me isn't going to be there even if it supposedly will be "insured." 
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pj
Joined: 13 Jul 2003
Posts: 278
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Posted: Fri Aug 24, 2007 9:35 pm Post subject:
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ok....when I started with Sears about 18 1/2 years ago, you could retire at 55 with 10 years or more. Now, when I asked why I hadn't received the retirement package, I was told it's 60 years of age with 10 years, or 55 years of age with 20 years! When I said that many co-workers had retired at 55 with 10 pver the years, I was told that wasn't true! Hey...I'm not THAT dumb! So, I've just turned 55, and I'm 18 months short of the 20 years...so I get screwed again and won't be allowed retirment with the lump sum! Does anyone know when it changed to 20 years? I guess now that we're Sears Holdings, the rules silently changed.
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earlybird
Joined: 17 Apr 2005
Posts: 1023
Location: EAST COAST
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Posted: Mon Aug 27, 2007 11:32 am Post subject:
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| pj wrote: |
| ok....when I started with Sears about 18 1/2 years ago, you could retire at 55 with 10 years or more. Now, when I asked why I hadn't received the retirement package, I was told it's 60 years of age with 10 years, or 55 years of age with 20 years! When I said that many co-workers had retired at 55 with 10 pver the years, I was told that wasn't true! Hey...I'm not THAT dumb! So, I've just turned 55, and I'm 18 months short of the 20 years...so I get screwed again and won't be allowed retirment with the lump sum! Does anyone know when it changed to 20 years? I guess now that we're Sears Holdings, the rules silently changed. |
Well, it was true two years ago and I know, because I did. I'm gonna tell you like I've told others. DON"T ask anyone in the store. CALL and ask the people who deal with these things. Mind you I really don't doubt that its true, but everyone should call. I tell you what, if it is true then there is truly nothing left for the employee. Everyone should write them a GO TO HELL letter with a return address of the North Pole. Screw the cheating, liar, stealing bums. They can take that little employee discount of ours and stick it up their little hedgefund rearends.
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