Judge OKs Settlement for Sears Retirees

A judge has approved a settlement granting about $28 million in life insurance benefits to 56,000 Sears, Roebuck & Co. retirees whose benefits were cut in 1997.

The money is to be split among the retirees based on the previous value of their company life insurance plans.

U.S. District Judge James Moran in Chicago approved the settlement.

Peter Wasylyk, a Providence, R.I., attorney representing the retirees, said Sears did not restore all the benefits the plaintiffs were requesting, but he called the settlement fair nevertheless. He could not immediately say what the total would have been if all employees had received their entire benefits.

The Hoffman Estates, Ill.-based company quit granting life insurance as a retirement benefit in 1997 and announced it would reduce the plans for retired employees to $5,000 over 10 years. That meant the loss of only a few thousand dollars in benefits to some employees, but Wasylyk said others had policies worth up to $100,000.

Sears spokeswoman Peggy Palter said the company was pleased with the settlement.