PARTNERSA Publication by the H.C.S.C. Club, Inc. for retired JCPenney National Members SPRING 2020 AMERICA STRONG! SPRING 2020 Contents Volume 118 Issue 1 FEATURES 5 Jill Soltau 6 Your Pension Is Safe 7 Jane Brown Profile Hear directly from Jill Soltau, Even with the uncertainty and Jane Brown was the third in her Chief Executive Officer about how challenges brought on by Covid-19, family to work for JCPenney. Read JCPenney is doing during this time the JCPenney Corporation Pension about her story with the company of national crisis. Plan is well-funded and healthy. and her adventures since. IN THIS ISSUE 7 Profile 11 Mile High 11 Meeting Groups 12 North Central 21 Foundation 13 Southwest 23 Donors 24 Memories 12 FROM THE COVER: America Strong is a collaborative salute from the Navy Blue Angels and Air Force Thunderbirds to recognize and celebrate health care workers, first responders and essential personnel while standing in solidarity with all Americans during the Covid-19 pandemic. Picture by Sawyer Bengtson 2 www.jcpalumniclub.org Update from the Chairman Phil Esch Dear H.C.S.C. Friends, The Chairman’s newsletter for this issue was completed prior to the “invisible enemy” situation we are all dealing with. I hope and pray you, your families, and friends are well, and staying safe, and remain that way. Many of us fall into the most vulnerable group and should be following all the guidance provided. Yes, this circumstance is difficult, but not insurmountable. If we heed the warnings, make adjustments where needed, and modify our lifestyles as required, we will see this through. As I’ve thought about our nation having been through the Great Depression, World War II, and 9/11, yet remains the best place on earth to live, it gives me confidence in the American people. Let’s not let differences divide us. Let’s unite so that we can defeat this Covid-19 virus. Penney partners know how to work together to accomplish difficult tasks, so let’s do our part to meet this challenge. Phil 3 Letter from the Chairman Phil Esch Dear H.C.S.C. Friends, During our most recent at-large National Board Meeting on March 4, 2020, decisive action was taken regarding the 2022 H.C.S.C. National Retiree Convention. This has been done in response to the decline in attendance and loss in revenue resulting in deficits at the most recent national conventions. The Board voted unanimously to move toward more frequent “regional” gatherings, rather than a singular national convention every three years. These get-togethers will rely on the Local Meeting Groups (LMGs), henceforth to be referred to as Regional Meeting Groups (RMGs), to plan, invite, and execute. Several groups have had excellent response to their annual more localized events and have often had attendees from across the country. In many cases, participants belong to multiple groups. Members from other Regional Meeting Groups (RMGs) will be invited/encouraged to attend these events, and you can attend as often and in whichever location you choose, as long as accommodations are available. These occasions will include the “Fifty-year Pinning” ceremonies, as well as “Century Club” recognition for those members attaining age 90. Guest speakers from JCPenney District, Regional, or Home Offices could be invited to present, if so desired. I want to urge you to build on the relationships you have with local store General Managers and District Managers. They are working hard to make things better and can use your encouragement. As you know, CEO Jill Soltau has an appreciation for the legacy of the Company and is grateful for the contributions of all JCPenney retirees. I look forward to spending time with you more frequently in our updated convention format. Phil 4 www.jcpalumniclub.org Dear Retiree, First and foremost, I hope you and your families are safe and healthy. These are challenging times for all of us – as individuals and as a Company. We have had to make many difficult decisions in recent Dearweeks, Retiree, yet I am proud of the commitment and dedication our associates have shown to JCPenney. I am also thankful for the unwavering support of you, our valued retirees, during this unprecedented pandemic. First and foremost, I hope you and your families are safe and healthy. These are challenging timesI am reaching for all of out us regarding – as individuals media speculation and as a Company. about our We Company have had that to you make may many have difficultseen, and I decisionswanted to providein recent an weeks, update yeton actionsI am proud we are of takingthe commitment related to our and capital dedication structure. our As you may be associatesaware, we have have been shown engaged to JCPenney in discussions. I am also with thankful our lenders for sincethe unwavering mid-2019 to support evaluate of options you, to strengthen our balance sheet so that we may continue to build capabilities to satisfy the wants and our valued retirees, during this unprecedented pandemic. expectations of our customers. Since that time, we have successfully met or exceeded guidance on all five financial objectives for 2019 and saw comparable store sales improvement in six of eight mer- Ichandise am reaching divisions out regardingin the second media half speculation of 2019 over about the first our half. Company that you may have seen, and I wanted to provide an update on actions we are taking related to our capital structureThese discussions. As you maywith beour aware lenders, we are have ongoing been and engaged have become in discussions even more with important our lenders as our stores have closed due to the Coronavirus (Covid-19) pandemic. As a result of this event, we made the stra- since mid-2019 to evaluate options to strengthen our balance sheet so that we may tegic decision to not make an interest payment due on April 15 and take advantage of a 30-day grace continueperiod. This to givesbuild thecapabilities Company to more satisfy time the to continuewants and constructive expectations engagement of our customers. with our lenders Since with thatthe ultimate time, we objective have successfully of maximizing met financial or exceeded flexibility guidance and better on all positioning five financial JCPenney objectives for the future. for 2019 and saw comparable store sales improvement in six of eight merchandise divisions inI would the second also like half to mentionof 2019 theover JCPenney the first halfPension. Plan, which is well-funded and financially healthy. The Pension Plan’s assets are held in a separate trust, set up exclusively to pay plan benefits and ad- ministrative expenses regardless of the Company’s future financial status. The plan’s assets are sepa- Tratehese from discussions the Company’s with ourassets lenders and cannot are ongoing be claimed and have by creditors. become Independent even more trustees,important auditors, as ourand storesactuaries have monitor closed the due plan to to the ensure Coronavirus the trust and(COVID its funds-19) pandemic. are properly As managed. a result ofThe this plan ben- eventefit is , alsowe madeinsured the by strategic the Pension decision Benefit to notGuaranty make anCorporation interest payment(PBGC), a duefederal on Aprilinsurance 15 and agency. take advantage of a 30-day grace period. This gives the Company more time to continue This crisis was unexpected and unimaginable, and this is a difficult time. Please know JCPenney has constructivea solid foundation, engagement a strong withstrategic our lendersplan, and with an extensivethe ultimate portfolio objective of brands of maximizing that resonate with cus- financialtomers, and flexibility we intend and to b beetter an positioningeven stronger JCPenney retailer once for thethis futurepandemic. passes. As our Company’s biggest advocates, I ask you to continue trusting our ability to persevere and weather this storm. With Iyour would ongoing also like support, to mention we will thecontinue JCPenney the long Pension legacy Plan, you built which for isour well great-funded Company. and financially healthy. The Pension Plan’s assets are held in a separate trust, set up exclusively In service to our customer, to pay plan benefits and administrative expenses regardless of the Company’s future financial status. The plan’s assets are separate from the Company’s assets and cannot be claimed by creditors. Independent trustees, auditors, and actuaries monitor the plan to www.jcpalumniclub.org 5 IN TIMES LIKE THESE, IT’S GOOD TO KNOW Your Pension Is Safe Even with the uncertainty and challenges brought on by COVID-19, the J. C. Penney Corporation, Inc. Pension Plan is well-funded The Pension Plan’s assets are held in Did you know? administrative expenses regardless The assets of the Pension Plan are separate from the Company’s assets and cannot be claimed by creditors. Independent trustees, auditors and actuaries monitor the Pension Plan to ensure that the trust and its funds are properly managed. (formerly known as Powerline) or by calling the JCPenney Benets Center at 1-888-890-8900, Monday–Friday, 8 a.m.–8 pm. Cental time. This document provides informal information about the J. C. Penney Corporation, Inc. Pension Plan. If there are any inconsistencies between control. 6 www.jcpalumniclub.org Profile Jane Brown ane Brown was born in 1945 in Miami, Florida, and lived there until she started attending Mars Hill College in 1963. During that time a few notable historical events occurred, including Jthe Cuban missile crisis and the assassination of President Kennedy. In 1958, Jane’s mother started the family’s history with JCPenney by joining Store 1720 in North Miami Beach when it opened, having never before worked outside the home.