Plano, TX (WBAP/KLIF) – J.C. Penney says it expects to emerge from chapter 11 bankruptcy late next month, but its new owners will not take on the company’s pension plan.
Indiana-based Simon and Brookfield will turn over Penney’s fully funded pension plan to the Pension Benefit Guaranty Corporation (PBGC). it will also nix all other retiree benefits like medical and life insurance. The actions affect over 50,000 current and future retirees, according to the Dallas Morning News.
JC Penney, which has been based in Plano since 1992, filed draft copies of its sale deal this week, which included the permanent closing over the weekend of its store at Timber Creek Crossing Shopping Center in Dallas.
‘The News reports. “The PBGC has caps on monthly pension payouts, but it’s not clear based on various formulas how the Penney monthly pension will be affected.”
(Copyright 2020 WBAP/KLIF 24/7 News. This report contains material from the Dallas Morning News.)
