Sears pension cut begins this week

Sears Canada experienced quite the year in 2017. They filed for bankruptcy and officially shut down their operations after decades of being a Canadian retail giant. All the while, the press had a field day with negative reports of price fixing, mistreatment of employees, ill-placed bonuses, and missing pension funds.

Now, months after the last store has closed its doors, Sears is still facing backlash. Thanks to the pension fund being under by $260 million, recipients will now see a 30% cut on their pension checks.

The cut, which equals out to $800 a month for some Sears pensioners, will continue for the next 20 months, putting many in a tough spot. Those eligible for the Sears pensions we notified in advance that they would be seeing a cut of 20% to help stabilize the program, however they were un prepared for 30%.

"People had their minds wrapped around the 20 per cent, now it's more than that," said Ken Eady, vice-president of the Sears Canada Retiree Group (SCRG), a volunteer organization representing retirees. "It's another loss for Sears pensioners.”

The cut is meant to help maintain the program in the long run, and help ensure that it will be able to support those who have worked for the company for so long. However, it is not doing much to help pensioners right now.

"It's terrible," said Ron Husk of Mount Pearl, N.L., who worked for Sears for 35 years. On Wednesday, his monthly pension payout dropped by almost $450.

"I stayed awake at night thinking about it and I don't know what to do," said the 72-year-old former appliance salesman.

Husk is already working, as a greeter at Home Depot. He took the job last year in anticipation of a reduced pension.

"I'd rather stay home," he said. "Anybody at 72 prefers not to work."