J.C. Penney Co. is offering about 31,000 retirees in its defined benefit pension plan the option of a lump-sum payment in exchange for a lifetime monthly benefit.
The so-called lump-sum window will be open until September 18 of this year. Payments will be made from plan assets. As of the end of last year the plan held $5.5 billion in assets and had a funding ratio of 104 percent.
The announcement comes after the IRS announced a prohibition on lump-sum offerings to retired workers already receiving their pension, effective July 9.
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