When Sears Holding Switched life insurance from MetLife to Prudential, why wasn’t my MetLife policy (as a retiree) moved along with all the other ACTIVE employees?

When I retired, I was on a Life Insurance Policy through Kmart with MetLife. I continued with this plan, paying premiums on my own since my retirement. As of May 2013, I have been advised by Met life that through Sears Holding, they no longer will have affiliation with MetLife, and that if I want to stay with the plan, I must now pay 44+% higher premiums, as corporate plan membership no longer exists. Every time, since I retired, if the company changed plans, I was informed and the new plan or insurance company information was supplied to me, I.E., first MetLife, then Paragon, then back to MetLife, but this time as a Group Variable Universal Life (GVUL) Insurance Plan. Apparently Sears Holding dropped all MetLife Plans, switched to Purudential Life, BUT ONLY FOR ACTIVE EMPLOYEES, and left the retirees sitting here high and dry, with now huge premiums they can ill-afford. I certainly would not have minded giving up my (GVUL) MetLife Plan to be included with the rest of the Sears JHolding group, if it meant paying premiums of less than $890/month.

What’s up with that?


2 answers

  1. Hi, Jocarbeau. Welcome to the Community and congrats on Retirement! I would suggest calling the Human Resources Team for help with this question as this Team would have the best insight to offer you as a Retiree.

    The Retiree Benefits number is 1-800-762-7327. Also feel free to visit for additional quick Retiree Benefits resources!

    1. In response to laurelS

      I tried the web site above, all it did was forward me to Prudential who told me that I wasn't on the Sears Holding Plan. The phone number was trickier. First I answered "Life insurance" to the robo answering machine, and I got the above Prudential line once again. The second time I answered "Life Insurance transfer" and got the MetLlife line that I already found out by myself and are the reasons I generated this question. I.E. Prudential said my policy was not on the list of their NEW policy holders because it was only for ACTIVE employees; and MetLife said pretty much the same thing only they put it differently... They said that since the policy holders that they had left, after Kmart and Sears ACTIVE employees were taken out of MetLife and transferred to Prudential, were going to still be billed for any policy they were still holding, although they were no longer considered in a large group that was affiliated with Sears Holding, therefore they were put in a NEW actuary table as no longer being in the Large Sears Holding group. In other words, Sears Holding Company left all and any inactive retirees high and dry, having to fend as a minority group, and suffer a 44% premium increase as all policies are no longer affiliated with Sears Holding, except in "Name" only.

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