Retirement Benefits

This information is designed as a summary of the retirement process and the retirement benefits available to eligible associates. Please read this information carefully. It may also be helpful to contact a tax advisor or financial planner for advice on achieving your retirement goals.


NEW for Retirees!
Please print out this quick-reference checklist to ensure you're on the right track to a great retirement.

Benefit Contact List

 

Benefit / Topic

Contact Information

Pension

Sears Holdings Pension Service Center

https://searspension.ehr.com
1-800-953-5390

401(k) Savings Plans

Sears Holdings Benefits Center

1-888-88sears (1-888-887-3277)
Your Benefits Resources via www.myhr.searshc.com

Retiree Medical

Retirees can call the Aetna Retiree Health Access (RHA) Service Center directly at the number provided below or go online to the RHA website: www.rhagroupexchange.com/sears to view the health plan options currently being offered to Sears retirees.

RHA Service Center: 1-877-254-6765                  

Hours: 8 a.m. to 9 p.m. Eastern Time, Monday-Friday 

COBRA Benefits

Sears Holdings Benefits Center
1-888-88sears(1-888-887-3277)

Life Insurance

Securian
1-866-778-3827

Group Universal Life Insurance
(Sears associates only)

Prudential
1-800-778-3827

Kmart Executive Life Insurance -Group Variable Life Insurance
(Kmart associates only)

Securian
1-866-778-3827

Social Security Benefits

Social Security Administration
www.ssa.gov

Medicare Benefits

Centers for Medicare and Medicaid
www.medicare.gov

Associate Stock Purchase Program

Morgan Stanley

1-888-246-9637

Discount Card Sears Holdings HR Support Services
1-888-88sears

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What happens to my Benefits at Retirement?

 

Benefits available during retirement (subject to eligibility rules)

Coverage ends on the 14th day after retirement / termination

Coverage ends on the last day of employment

  • Discount Card
  • Pension
  • Sears Holdings Savings Plans (investment
    rights continue until account
    is distributed)
  • Retiree Medical
  • Life insurance (if ported or
    converted)
  • Voluntary Benefits (vision, legal,
    long-term care, pet and
    auto/home insurance)
  • Kmart Prescription Savings Club
  • Active medical
  • Dental
  • Vision
  • Long-term disability
  • Flexible spending accounts
    (unless COBRA is elected)
  • Sears Holdings Savings Plans (no additional contributions)
  • Short-term disability
  • Business travel insurance
  • Life insurance (unless ported
    or converted)
  • Commuter Benefits
  • Associate Stock Purchase
    Plan

 

 

Pension

 

 

Kmart

Sears

Eligibility for the Plan

As of January 31, 1996, you must have been at least age 21 with at least 1 year of vesting service and worked in a location that participated in the Kmart Pension Plan.

You must have been hired before January 1, 2004 and worked in a location that participated in the Sears Pension Plan.

Eligibility for retirement

To retire under the Pension (begin receiving benefits) you must be at least age 55 with at least 5 years of vesting service.

If you are under age 55 at the time you terminate from the Company and you have at least 5 years of vesting service, you are eligible for a deferred pension commencing any time on or after age 55.

To retire under the Pension (begin receiving benefits) you must be at least age 55 with at least 5 years of vesting service at the time of your retirement.

If you are under age 55 at the time you terminate from the Company and you have at least 5 years of vesting service, you are eligible for a deferred pension commencing any time on or after age 55.

 Milestone Events 90 points- call the Pension Service Center at 888-953-5390 to verify your 90 point date.

Lump Sum Payment Option- You are at least age 55 at termination.
 Lump Sum Payment Option- You are at least age 55 and have 20 or more years of continuous service OR you are at least age 60 and have 10 or more years of continuous service at termination.


How to Get a Pension Estimate

  1. Visit https://searspension.ehr.com
  2. Log in using your social security number and password.
    If you don’t know your password, select “Forgot your Password?
  3. Click on the “My Retirement”
  4. Under “Tools” select “Estimate My Pension”
  5. Select “Create a Single Scenario” or “Compare Scenarios”
  6. Select “Get Started”
  7. You’ll be prompted to enter your “Assumption”(expected termination/retirement date /age and other pertinent information).
  8. Review your benefit and payment details on the “Pension Benefit Estimator” 

Your benefit and payment options will be displayed on the screen with an option to print your calculations.

How to Start Your Pension

You may request a retirement kit up to 90 days before your retirement date.  It is recommended that you request your kit about 60-90 days prior to your retirement date to best ensure that your kit is properly completed and received by the Sears Holdings Pension Service Center in time for you to receive pension benefits as of your desired retirement date.

  1. Visit https://searspension.ehr.com
  2. Log in using your Social Security Number (or username) and Password
  3. Click on the Tab "My Retirement"
  4. Under "Tools" select "Initiate My Retirement"
  5. Select "Get Started"
  6. Enter your expected termination/retirement date and click on "Select"
  7. Complete Step 1: Indicate your retirement dates & beneficiary. Click on "Submit for Verification"
  8. Follow the prompts to initiate your retirement online
  • Retirement forms will be mailed to your address of record, which will be displayed on the screen or will be posted to the Message Center on the website. If this is incorrect, you must update your address on MPI - My Personal Information. Then request your retirement kit and it will be sent to your new address.
  • You will also need to notify your manager and/or your HR representative of your retirement date. Your pension benefit cannot be paid until after your retirement date is entered into the Sears Holdings HR system (PeopleSoft) and transmitted to the Sears Holdings Pension Service Center.

 

 

The Sears Holdings Savings Plans

 

Company Matching Contribution
If you contribute to the Savings Plan during the quarter in which you terminate your employment from the Company, and you have met the eligibility requirements for the Company matching contribution, your account will be credited with the Company match based on your contributions.  The Company match will be credited shortly after the end of the quarter in which the contributions were made. Effective January 1, 2009, Company match is suspended. 

For example, if you terminated/retired on January 20, 2008, you made contributions in January, and you were eligible for the Company match, your account will be credited with the Company match in April. 

Payment Options
Shortly after your termination of employment, the Sears Holdings Benefits Center will mail a packet to your home address.  It will contain your payment options, which include:

  • receive a distribution in cash of your entire account balance
  • roll over your entire account balance to an eligible retirement plan (IRA or another employer’s qualified plan)
  • roll over a portion of your account balance and receive the rest in cash
  • defer payment of your entire account balance (available only if your balance is over $1,000)

If you elect to defer payment of your account, you may leave your money in your account until age 70.  You may request a distribution at any time through the Your Benefits Resources ™ site via www.88sears.com or by contacting the Sears Holdings Benefits Center through 1-888-88sears.  While you are deferring payment, it is important to keep your address up-to-date with the Sears Holdings Benefits Center.

For additional information, refer to the “Other Information” section in the applicable Benefits Handbook.

 

 

Retiree Medical

 

Effective January 1, 2008, retiree medical benefits are the same for all Sears Holdings associates.

Sears Holdings (Kmart & Sears) Retiree Medical Eligibility 
To be eligible for retiree medical coverage, you must:

  • be at least age 55 at the time of your retirement (or at least age 50 if your retirement is due to health reasons, unit closing or a reorganization under which you are eligible for benefits under a Transition Pay Plan);
  • complete at least 10 years of consecutive service at the time of your retirement (based on your most current service date); and
  • have been employed by a company or subsidiary that has elected to participate in the Sears Holdings Retiree Medical Plan.

Coverage is available for you or you and your covered dependents. 

If eligible, shortly after your retirement, you will receive a packet of information and enrollment instructions.  You may elect coverage or elect to suspend coverage, but you must do so within 60 days or you will have waived your COBRA rights and your eligibility for retiree medical will be forfeited. For more information on COBRA, refer to the section below entitled “COBRA Continuation Coverage”.

If you elect coverage within 60 days, coverage generally begins on the day after your coverage as an active associate ends, provided your premiums are received in a timely manner.

You may elect to suspend your retiree medical coverage within the 60-day election period, or at any time after you elect coverage.  Once you suspend your retiree medical coverage, you may begin or resume retiree medical coverage only if you:

  • were continuously covered by another medical plan;
  • are no longer eligible for your other coverage (other than for non-payment); and
  • contact Aetna within 60 days of losing eligibility for your other coverage.

For additional information, refer to the “Other Information” section in the applicable Benefits Handbook.

Retiree medical rates can vary by plan and state. Please contact Aetna for or more information.

Sears Holdings (Kmart & Sears) Master Retiree Medical Plan Summary Plan Descriptions:

 

COBRA Continuation Coverage (Medical, Dental, Vision, and Health Care Flexible Spending Account)

 

Shortly after you terminate from the Company, you will receive a notice of your right to continue medical, dental, vision and/or health care flexible spending account coverage. Under the provisions of the Consolidated Omnibus Budget Reconciliation Act (COBRA), a federal health benefits law that was passed in 1986.

COBRA medical, dental and vision coverage generally ends after 18 months (may be longer if a secondary event occurs during the 18 months entitles you or your dependents to a longer COBRA period).  COBRA coverage for the health care flexible spending account ends at the end of the calendar year in which you retire.

COBRA premiums are 102% of the total cost of coverage – this includes the portion you were paying as an associate and the portion Sears Holdings was paying.  You will be billed directly for your COBRA coverage.

For additional information, refer to the “Other Information” section in the applicable Benefits Handbook.

Life Insurance

Your Sears Holdings Company Paid Life Insurance coverage ends of the date of your termination of employment from the Company.


Conversion / Portability Options

  • You may elect to convert your Company Paid Life Insurance coverage to an individual policy.
  • If you were enrolled in Optional Life Insurance (associate, spouse or child) for the 12 months prior to your termination:
    • You may elect to port up to 50% of your own Optional Life Insurance (and AD&D, if applicable), or $1 million, whichever is less.  You also have the option of “converting” the remaining amount of your Optional Life insurance to an individual life policy. If you do not elect the portability option, you are eligible to convert the whole amount to an individual policy.
    • You may also elect to convert any spouse or child life to an individual policy.
  • If you are a Kmart associates enrolled in the Kmart Executive Life Insurance Plan - Group Variable Life Insurance (GVUL), you may elect to port 100% of the coverage. Please contact Securian at 1-800-778-3827 for information and premiums.

Shortly after you terminate your employment from the Company, you will receive information about your conversion and portability rights.  The information will include instructions and the applicable premiums for porting your coverage. For conversion premiums, contact the Sears Holdings Benefits Center at 1-888-88sears (1-888-887-3277) and ask to speak to a Securian representative.  You have 31 days from your termination date to elect to port or convert your Optional Life Insurance, regardless of when you receive your information packet from Securian. 

For additional information,refer to the “Company Paid Life Insurance”, “Optional Life Insurance”, and “Other Information” sections in the applicable Benefits Handbook.

Every effort has been made to ensure that the information contained on this site and linked pages is accurate. However, this site and linked pages do not constitute the legal plan documents of the plans and programs summarized nor do they constitute a guarantee of current or future benefits. If there are any conflicts between the information presented and the legal plan documents that governs each benefit plan, the legal plan documents will govern. Sears Holdings Corporation reserves the right to change or terminate any or all benefit plans at its discretion.

Retiree Discount

All associates who are retiree benefits eligible (retiree medical, discount) and retire in accordance with company policies are granted a retiree discount privilege when employment terminates. Upon retirement retiring associate/spousal discounts will convert automatically to a dollars-off discount.  Retiring associates and their eligible spouses should retain their current discount cards.  No retiree-specific discount cards will be issued. Replacement discount cards can be obtained by calling 1-888-88sears to speak to a Sears Holdings HR Support Center customer service representative.


Note: The retiree discount privilege will not be granted for those associates who become Pension eligible at a later date following termination of employment.