Sears Retirees Fight Life Insurance Termination as Heirs Get Zip
- Shell of bankrupt retailer terminated life insurance policies
- U.S. Department of Labor earlier objected to Sears estate move
A customer enters a Sears Holdings Corp. store in San Bruno, California.
Photographer: David Paul Morris/BloombergA group of retired Sears Holdings Corp. workers have asked for the creation of a committee to protect their interests as a retiree died shortly after his life insurance was canceled.
Lawyers for the retired workers say the bankrupt retailer has wrongly terminated the life insurance policies for tens of thousands of former employees. They believe the spouses of some Sears retirees who recently died have been deprived of the life insurance payment earned from years of work at the iconic department store, according to a court filing. In one instance, the life insurance policy of a Sears retiree who died May 6 won’t be paid because his death was 21 days after the Sears estate terminated his benefits, according to the Tuesday court filing.