Pension Benefit Guaranty Corporation (PBGC)
- A federally-backed insurer that provides pension payments to retirees if their pension plans fail because they can't meet their financial commitments, funded by premiums paid by employers overseeing the covered plans, covering solely defined benefit plans up to a certain monthly maximum
- When the company went bankrupt, the Pension Benefit Guaranty Corporation (PBGC) stepped in to make sure the retirees still received pension payments.
- The PBGC ensures that employees don't lose all of their defined benefit plans if their employer can't fulfill their pension obligations.
- Funded by employers' premiums, the PBGC provides a safety net for retirees if their pension plans fail.