*By Carlo Versano*
The 90,000 or so retirees holding pensions with Sears are expected to have their benefits honored by the government-backed Pension Benefit Guaranty Corp., or PBGC. But it will place an "enormous strain" on the guarantor that was designed be the main lifeboat for American pensioners, according to Eddie Stone, counsel to ProtectSeniors.org, which represents millions of retirees.
Sears ($SHLD) is "on the hook" for its pension funds, which are underfunded by about $1.5 billion, as long as it stays in Chapter 11 bankruptcy, Stone said. But if it moves to the more extreme Chapter 7 ー in which it would sell off assets to repay debt rather than renegotiate the terms of its loans ー the benefits would be taken over by the PBGC.
But the agency has limited resources, mainly due to the relatively flat returns from fixed-income investments due to what had been historically low interest rates. And without Sears paying its premiums, the guarantor is now worse off than it was just the day before Sears filed.
Having to pay out Sears's long-term obligations will add to the PBGC's worries, Stone said. "This is going to tax the PBGC's ability to take on more defaulted pension plans."
The issue is not new, and it highlights what Stone called a "systemic" global pension crisis. Sears was among the dwindling number of American businesses that still offered pension plans. Former CEO Eddie Lampert, the hedge fund executive who ran the company through its decline, put some of the blame from the company's bankruptcy on its pension obligations, of which it paid out $2 billion in the last five years.
That's "missing the boat altogether," said Stone. He pointed out employees took lower paychecks in return for contributions to their pensions.
"The retirees are entitled to their earned benefits," he said. "They aren't handouts."
For full interview [click here](https://cheddar.com/videos/bankruptcy-filing-shifts-spotlight-to-sears-pension-plans).
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
At the core of the ongoing government shutdown is a fight over the decision to end subsidies that let some 12 million Americans get health coverage.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
