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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