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).

  1. Cash Balance Pension Plan

    A pension plan under which an employer credits a participant's ...
  2. Pensionable Service

    The period of service, expressed in a yearly figure, for which ...
  3. Pension Shortfall

    A situation in which a company offering employees a defined benefit ...
  4. Defined-Benefit Plan

    A defined-benefit plan is an employer-sponsored retirement plan ...
  5. Fully Funded

    A pension plan that has sufficient assets needed to provide for ...
  6. Accumulated Benefit Obligation

    Accumulated benefit obligation is the approximate amount of a ...
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  1. 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 >>
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