Pension Benefit Guaranty Corporation

What Does Pension Benefit Guaranty Corporation Mean?

The Pension Benefit Guaranty Corporation (PBGC) is a federal insurance fund that is tasked with funding certain pension plans after they have run out. The PBGC is handled by the Department of Labor and provides a crucial source of income for retirees who have had their pension funds terminated.

Insuranceopedia Explains Pension Benefit Guaranty Corporation

Although it is a federal program, the Pension Benefit Guaranty Corporation is not funded by taxes but, rather, by premiums paid by employers. The PBGC, moreover, is only obligated to pay a certain amount per month, dictated by the specific plan an employer purchases.