Pension Benefit Guaranty Corporation (PBGC)

The Pension Benefit Guaranty Corporation (PBGC) is a government body established by Title IV of the Employee Retirement Income Security Act of 1974 (ERISA) to ensure payment of pension plan benefits when the plans are terminated. The PBGC is headed by an executive director who reports to a board of directors. The board of directors consists of the secretaries of labor, commerce, and the treasury and is chaired by the secretary of labor. The PBGC states that its mission is to encourage the continuation and maintenance of voluntary private pension plans, provide timely and uninterrupted payment of pension benefits, and keep pension insurance premiums at a minimum.

The PBGC acts as an insurer and guarantor of private pension plans with two main insurance funds, one covering ...