The Pension Benefit Guaranty Corp. is taking over J.C. Penney Co.'s defined benefit plan, PBGC officials said Friday.
PBGC Director Gordon Hartogensis said in a statement that the agency "is acting to protect the retirement security of the J.C. Penney plan participants."
The company and 17 related entities filed for Chapter 11 protection in U.S. Bankruptcy Court in Corpus Christi, Texas, on May 15. In October, the company announced it was seeking court approval of a proposal to sell its operating assets to a joint venture led by Brookfield Asset Management and Simon Property Group that did not agree to assume the pension plan.
According to PBGC estimates, the J.C. Penney Corporation Inc. Pension Plan is 92% funded with $3.3 billion in assets and $3.6 billion in benefit liabilities. According to the company’s 10-K filing in January, the pension plan had $3.5 billion in assets and $3.2 billion in liabilities, and was 120% funded.
The termination is effective Friday and further updates are expected.