Sears ends retirees' life insurance benefits

[rousemark]

'This Is Not Ok': Sears Condemned for Ending Retirees' Life Insurance After Handing Executives $25 Million in Bonuses

The retail giant Sears came under fire Saturday following reports that the company is ending life insurance benefits for an undisclosed number of its 90,000 retirees—just months after handing executives over $25 million in bonuses.

"It's the last benefit that retirees had," Ron Olbrysh, chair of the National Association of Retired Sears Employees (NARSE), told CBS News.

Progressives responded with outrage to reports of Sears' move, which fits a pattern of corporate giants rewarding top executives while average employees face benefit cuts and lay-offs.

Probably not the situation in the Sears case but top executives are rewarded for performance in increasing profits. Sometimes they can trimming employees and/or benefits can accomplish that result therefore they get a bonus while others get the door. Doesn't seem right if you are the one receiving the walking papers but it is just "business" and business, like the world, is never fair..

 

[VolAgent]

'This Is Not Ok': Sears Condemned for Ending Retirees' Life Insurance After Handing Executives $25 Million in Bonuses

The retail giant Sears came under fire Saturday following reports that the company is ending life insurance benefits for an undisclosed number of its 90,000 retirees—just months after handing executives over $25 million in bonuses.

"It's the last benefit that retirees had," Ron Olbrysh, chair of the National Association of Retired Sears Employees (NARSE), told CBS News.

Progressives responded with outrage to reports of Sears' move, which fits a pattern of corporate giants rewarding top executives while average employees face benefit cuts and lay-offs.

On the face of it, it seems wrong. However, think it through.

Assuming you are a top level executive and are currently between jobs. You know it takes a while to find a new job (I recall one reading it takes a month for every $10,000 in income to find a new job, although not sure how true that is) and a company that is in bankruptcy comes calling. Would you take that job knowing it will only last for a few months or maybe even a year and then be right back in the same situation? Unlikely, so without a bonus, it would be very difficult for a company in bankruptcy to find any level of talent to guide it and protect its value for its creditors.

Now, if we are talking about the same executives that lead it to bankruptcy, then no, they can go pound sand.

There was an example locally of this for the average worker. Electrolux is closing its local plant because its main customer was Sears. The factory workers are offered a severance package, but to get it they must stay until the plant closes. Same situation, they all want to jump ship, but Electrolux wants to keep the plant open and producing until the last day, so they have to offer a carrot with a stick to get people to stay until then.

 

[Northeast Agent]

Sears retirees fight life insurance termination as heirs get zip

“Sears has stated its clear intention to ignore its obligations to the retirees,” states the motion to form a committee. “The retirees request that the court direct the appointment of a committee to advocate for the thousands of retirees unjustly and illegally losing their benefits.”

 

[Markthebroker]

I actually found this surprising because I am honestly surprised that Sears is still in business.

 

[VolAgent]

I actually found this surprising because I am honestly surprised that Sears is still in business.

No matter how hard Lampert tries, Sears isn't going down without a fight.

 

[Northeast Agent]

Sears Retirees’ Life Insurance Payouts Could Be Just $135 Each

• 
  
  
  • Plan had provided death benefits of up to $14,500 for workers
  • Estate says it doesn’t have enough money to pay premiums

Bloomberg - Are you a robot?

 

[Robert Barney]

Sears Retirees’ Life Insurance Payouts Could Be Just $135 Each

• 
  
  
  • Plan had provided death benefits of up to $14,500 for workers
  • Estate says it doesn’t have enough money to pay premiums

Bloomberg - Are you a robot?

Imagine what will be left if Social Security and Medicare aren't fixed.

 

[MDPirate]

I had a chance to write a short article about this situation. Very bad for retirees in general. Going to follow this story closely as 29,00 people are affected.

 

[rousemark]

I had a chance to write a short article about this situation. Very bad for retirees in general. Going to follow this story closely as 29,00 people are affected.

John, it is not a bad article but you are going to have a hard time "you’ll be getting the right funeral insurance policy at the lowest price." with the line up you have featured at the bottom of the page... Personally, I never promise the "lowest" price because it seems there is always someone out there that can beat you.

 

[VolAgent]

John, it is not a bad article but you are going to have a hard time "you’ll be getting the right funeral insurance policy at the lowest price." with the line up you have featured at the bottom of the page... Personally, I never promise the "lowest" price because it seems there is always someone out there that can beat you.

There are so many superlatives in there, it is a regulator's wet dream. It may be good copy, but it is far from compliant.