Pension Benefit Guaranty Corporation - PBGC

DEFINITION of 'Pension Benefit Guaranty Corporation - PBGC'

A non-profit corporation that functions under the jurisdiction of the Department of Labor and that guarantees the payment of certain pension benefits under defined-benefit plans that have been terminated with insufficient money to pay benefits.

BREAKING DOWN 'Pension Benefit Guaranty Corporation - PBGC'

This federal corporation was established to ensure that defined-benefit plan participants aren't left out in the cold if there isn't enough money in the pension plan to meet the needs of people about to retire (i.e. in the event of a pension shortfall).

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RELATED FAQS
  1. The company I am receiving my pension plan from has just filed bankruptcy. Could ...

  2. Who bears the investment risk in 401(k) plans?

    Who actually bears the investment risk in a pension plan depends on the type of pension plan that is employed. In a broad ... Read Answer >>
  3. Will I still receive my pension?

    The company I worked for is going out of business. About 7 years ago, I received a letter stating that my pension plan had ... Read Answer >>
  4. Can I draw out or sell my straight life annuity?

    I have a pension plan through PBGC. I have my benefits form that shows how much I can draw. I am retired and disabled. What ... Read Answer >>
  5. Can I leave my pension to my spouse when I pass away?

    In most cases, an individual with a pension plan should have the option to leave at least a portion of his or her pension ... Read Answer >>
  6. What can you do with your pension if you leave the employer and can you borrow money ...

    I am planning to leave my job that I have worked at for 8 plus years and I just received a notice about a pension that I ... Read Answer >>
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