Depending on how the fund was setup and her category within it, a few scenarios come to mind.
The first scenario is that based on number of contributing fund members decreasing over time, in comparison to the benefits it was paying, the administrators kept reducing payouts to comply with federal funding requirements. If Kmart was terminated from participation in the fund when they went bankrupt and no other companies were a party to it (unlikely to have), the fund has been paying benefits with no contributions since the bankruptcy.
The second scenario is the fund at some point over the years may have invested in poor investments heavily and the fund balance took a bath.
English please!
In all seriousness, I'm not at all knowledgeable about this information. What do you mean by "fund" here? The pension plan fund or something else?
Why the freeze on adding to retirement benefits since 1996? Did I miss the reasoning why on this matter?
I'd like for someone to help me get an accurate figure on what her pension should be going by the pension policy below:
Annual retirements benefits were based on the “final average compensation formula.” The formula was 1.50% of the average of the officer’s best five compensation years prior to January 31, 1996 multiplied by years of service after age 21 and prior to January 31, 1996 up to 35 years minus 2% of the applicable Social Security benefit for each year of services up to 30 years at age 65.
I got the URL provided by justalayman working but now the page is blank(
Stock:Sears Holdings SHLD /Kmart Pension Plan/Kmart Pension Plan for Sears Holdings SHLD. From what I read this was about officers. I'm confused about all this stuff really. I mean the K-Mart Pension Plan policy that has a ton to read.
Basically, how do I get a figure going by the policy if my mother had worked for 20 years at the time of the pension freeze in 1996? Going by the information, it has nothing to do with how much money she was making, right? It has more to do with years of service or am I thinking wrong? Thanks!
