Sears Holdings Corp. said it will contribute $203 million to its pension plan, making the plan 80 percent funded, according to regulatory filings on Friday.
By funding the plan at least 80 percent, the Hoffman Estates-based company will be able to provide lump-sum settlements to some of the plan’s participants.
Sears said it would be “beneficial to settle pension obligations through lump-sum payments” to reduce the company’s exposure to its $6.1 billion pension obligation.
In 2013, the company expected its minimum contribution to be roughly $740 million, according to previous regulatory filings. By funding the plan, Sears said it expects to reduce its required contribution to roughly $350 million in 2013.
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