July 25, 2017
Update on Pension Election Forms
We have been notified by a few individuals that they have now received their termination statements (or pension election forms) after experiencing some delays from Sears Canada. If you have not yet received these documents, please contact the Sears Canada HR Service Centre at HRSC@sears.ca or 1-888-444-9444 (locally in Toronto 416-572-7300).
In light of the CCAA filing, Sears Canada as plan administrator has determined that those members who elect commuted value (CV) payments after June 12, 2017 will not receive the full value of their defined benefit pension entitlements at this time. This is as a result of the underfunding in the Sears pension plan. Members whose pension election forms are received by Sears after June 12, 2017 will only receive 81 % of their commuted value. The remaining 19% is payable over five years, but we cannot yet say when or if the additional 19% will be paid. Whether or not you will receive the balance of your CV payments will be determined based on a number of factors, including the outcome of the insolvency proceedings, whether the Pension Plan is wound up, and what additional amounts, if any, will be paid on its wind up. At this time, we do not have information on how this will proceed. The initial transfer at 81% of the commuted value is based on the Transfer Ratio as shown in the actuarial valuation report prepared as at December 31, 2015.
Please contact us if you have any questions specific to your individual circumstances.
We will continue to provide updates as information becomes available.