J.C. Penney Co. has said it will reduce pension obligations by $5 billion, or 25 to 35 percent of its liabilities, based on a new buyout agreement with Prudential Insurance Co.

The Plano, Texas-based retailer did not reveal the size of the deal, but it did say the pension will remain overfunded when the deal is closed at the end of the year.

The company also said that about 12,000 plan retirees accepted a lump-sum buyout. About 31,000 retirees were offered the option up until September 18.

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.